AI 2021 VAT Changes

If your business is VAT registered, catch up with the changes to the VAT regime that take effect from 1 January 2021:

NOTE: Reverse Charge accounting for VAT is not an EU specific rule – It is how you must account for VAT on services that you buy from businesses who are based outside the UK.

VAT Return boxes

Boxes 2, 8 and 9 will solely relate to EU transactions. These boxes will remain on the VAT return for Northern Ireland, but for businesses based in Great Britain, only six boxes will be relevant from 1 January 2021.

Postponed accounting

The VAT on imports from EU and Non-EU countries can now be postponed at the point of entry and included in your next VAT return.  This is instead of you paying VAT on the arrival of imports and subsequently claiming as input tax via a C79 form.

The box 4 entry must pass the same tests as a purchase invoice received from a UK supplier.


If you annually sell more than £150,000 worth of goods to VAT registered customers in the EU, or buy goods from EU suppliers exceeding £1.5million, you must still complete Intrastat declarations in 2021 for arrivals on goods from the EU. Intrastat dispatch returns will not be required.

EC Sales list

These will only be needed if you are in Northern Ireland.

Reclaiming VAT paid in EU countries

You can currently make an online claim to reclaim VAT from EU countries. From 1 January 2021, this procedure will no longer apply. You must submit individual claims to each tax authority where VAT has been paid.

MOSS returns

B2C supplies in the EU on broadcasting, telecommunication and electronic services will be taxed according to the VAT rate that applies in the customer’s country.

The major changes from 1 January 2021:

  • The threshold of £8,818 will end – a zero threshold will apply
  • A UK business making MOSS sales must register in an EU country of its choice under the non-EU MOSS scheme and submit returns and pay VAT in that country or register individually in each country.

This is a summary of the anticipated changes to VAT based on our knowledge to date. These points could be subject to change and full confirmation of any EU VAT accounting should be reviewed post 1 January 2021.