Brexit Guide: What to do as a non-UK business

Note: It’s your responsibility to consult with local tax authorities or a tax professional to verify your tax liability, the correct tax rates, and to ensure you file and remit your taxes correctly.

As of 1 January 2021, the UK will leave the European Union, and this might affect the UK VAT liability for your business. Quaderno is helping you comply with any changes.

This article covers:

  • Selling digital products to the UK
  • Selling physical products to the UK
  • Non-EU businesses still selling in the EU

Selling digital products to the UK

If you’re selling digital products to the UK and registered in the EU VAT MOSS, Quaderno will automatically stop applying EU VAT on your UK sales after 31 December 2020.

In the UK’s eyes, your business is now considered “foreign,” and the UK’s tax registration threshold for foreign businesses selling digital products into the country is £0.00.

Please follow these steps:

1. Register for UK VAT on 1 January 2021. To register, go to the HMRC’s Government Gateway website and create an account. Then follow the steps for online VAT registration.

2. If you’re already using the EU VAT MOSS, then Quaderno will automatically begin applying UK VAT to your UK sales.

If you are not registered in the EU VAT MOSS scheme, you should add the UK as a jurisdiction in your Quaderno account.

3. It may take up to 30 days to receive your new UK VAT number. When you receive it, please add it to the UK jurisdiction data in your Quaderno account.

For B2B sales, Quaderno will continue to apply the reverse-charge mechanism on sales to VAT-registered businesses in the UK. Quaderno will automatically verify UK VAT numbers with the new validation service system from HMRC.

Selling physical products to the UK

If you’re an EU business selling physical goods or non-digital services to UK customers, Quaderno will automatically stop applying EU VAT to your sales in the UK after 31 December 2020.

If you have a permanent establishment (including warehouses) there, you must register for UK VAT as of 1 January 2021.

Otherwise, if you import goods to UK customers, you may need to register for UK VAT if you make sales with a value of £135 or less. If your B2C sales are over £135, you may not have to register for taxes, but your UK buyer may have to pay a Import UK VAT and a customs duty instead. Please consult HMRC guidance to see if this applies to you.

Once you’ve confirmed your tax liability, please follow these steps:

1. Register for UK VAT! You can register on the HMRC’s website or by post using a VAT1 form.

2. Next you should add the UK as a jurisdiction in your Quaderno account. Quaderno will notify you when you make your first sale to the UK in 2021.

3. It may take up to 30 days to receive your new UK VAT number. When you receive it, please add it to the UK jurisdiction data in your Quaderno account.

Non-EU businesses still selling to the EU

If you had your EU VAT MOSS registration based in the UK, you probably need to pick a new “home country” and re-register in the non-Union scheme.

Before you re-register for EU VAT, you should know it’s not required across the board. Here’s the breakdown:

  • If you only sell digital products in B2B transactions, then you do not need to register for EU VAT.
  • If you ever sell digital products B2C in Europe, even just once, then you need to register and get your business a VAT number!


If you’ve confirmed your tax liability, then follow these steps:

As of 1 January 2021, you should register with a new EU VAT MOSS in the non-union scheme. 

1. Choose your “homebase” country and find its EU VAT MOSS online portal. (For links and specific information, you can check out our tax guides per country.)

2. Add your company information and bank account details.

3. Then enter your personal contact information.

4. From there, you’ll be asked about your company’s VAT history.

5. After this, the portal will send you to a summary page where you can review all the information you entered. Make sure it’s all correct!

6. Submit! That’s the whole registration process. You’ll receive your new EU VAT number either electronically or by mail.

For more in-depth information, check out this guide about how to register for EU VAT if you aren’t based in the EU.

7. Next you should add the EU member state as a jurisdiction in your Quaderno account. Then Quaderno will cover your sales within the EU VAT MOSS scheme.

8. Once you’ve received your EU VAT number, please add it to the same jurisdiction data in your Quaderno account.

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