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Foreign Companies: VAT

Question for Treasury

UIN HL3644, tabled on 2 November 2021

To ask Her Majesty's Government how many overseas businesses selling directly into the UK by mail order have registered for UK VAT since 1 January; and what assessment they have made of the impact of the obligation to do so.

Answered on

15 November 2021

From 1 January to 31 October 2021, the number of overseas businesses with the declared classification of ‘retail sale via mail order houses or via internet’ that have registered for VAT in the UK is 12,111.

On 27 October 2021, the Office for Budget Responsibility set out their assessment of the fiscal impact of the new rules for overseas goods introduced from 1 January 2020, which includes the requirement for overseas businesses to register for VAT in the UK for the sale of low value imported goods. Based on outturn data for the current year it is now expected that the measure will generate £1.4 billion in 2021-22, rising steadily to £1.8 billion by 2026-27, a fivefold increase on the previous estimate.

Answered by

Treasury