E-retailers face large Brexit VAT compliance bill

An estimated 27 040 UK small companies selling goods online across the EU could be liable for an annual £772m VAT compliance bill when the Brexit transition period ends on 31 December. 

Many UK companies have indicated that the compliance cost will force them to stop selling to EU consumers. In a survey of 989 small e-retailers VAT technology firm Avalara estimated the cost of new EU VAT registration and returns obligations at €28 568 a year for each business. This is based on EU compliance costs estimated from the European Commission.

From January UK companies will lose the EU VAT distance selling threshold relief. Instead they will have to register for VAT in each country where they are selling and file each month under the local national laws. 

None of the future trading relationships so far raised by the EU or UK in the Brexit negotiations...