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UK to EU Vat changes July 1, 2021

UK to EU Vat changes July 1, 2021

On July 1 the VAT rules change for UK merchants selling to EU citizens.

From 1 July 2021, all B2C sales of goods to EU consumers will become subject to VAT in the country to which the goods are delivered, whether the supplier belongs in the EU or elsewhere (including the UK).


UK suppliers (and other non-EU suppliers) will be able to report all ‘low value’ B2C supplies to EU consumers (those consignments with a value of €150 or less) on a single EU-wide VAT return.


If the value of the consignment exceeds €150 then VAT should not be charged by the merchant. Instead the EU consumer becomes responsible for the VAT.


A further issue is that when the consignment has items with different VAT rates then delivery charges should attract VAT at a proportionate rate.


How is Magento going to adress this change? I've looked for an extension on marketplace but can't find any.


Any other UK merchants have the same issue?


Re: UK to EU Vat changes July 1, 2021

Also related to this:
This change 01.07.2021 also creates challenges for Magento merchants in EU, when selling to other EU countries.  1000's of magento merchants need to show the prices including the VAT rate of the (EU) shipping country to the client.

A solution would be a message when the client enter the web shop, where they are informed about the VAT changes from July 1st, and because of this they must select the (EU) country that goods are shipped to (and from now on all prices will be shown incl. the actual VAT rate of that (EU) country.