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eu sales flat rate scheme Post Review

In our latest Brace for #Brexit article, Neil Warren considers the new procedures from 1 January 2021 for EU sales lists, Intrastat returns, the flat rate scheme and the retail export scheme. https://buff.ly/36uad1i

Tax news: Flat Rate Scheme and Exports: A client has £100,000 of domestic goods sales.  They also have £30,000 of intra EU sales and ...

All the #Brexitdividends I've spotted so far:- massively increased shipping costs (few couriers are capable of getting packages into EU on any kind of schedule) (can pass this to customer = less competitive price) - sending via DDP? Any returns = massive losses of taxes paid

- UK importers from EU used to Flat Rate Scheme VAT now paying massively more VAT due to VAT on EU imports, which renders FRS useless (can attempt to pass to customer = less competitive) - already seen EU customers wary of import charges = less sales#VAT #flatratescheme

Problem being there'll be no consumers to buy anything as more UK businesses fold along with the jobs that provide the consumers. I wonder what extra UK will export to China to offset more imports from there & its lost customs free internal market sales from being inside the EU?

I run a small company w/ 50% of sales destined for EU (currently). Shipping costs have been quoted for me as going up by £6.50 per parcel (c. 35% increase). VAT changes (largely due to VAT on imports) mean that Flat Rate Scheme is redundant so (c. 5% increase) = good for UK?

Re Flat rate scheme, please confirm that all sales to EU countries and also world wide comprise T/O for calculation

Reason will be due to VAT levied now against the sender. These changes came on 1/1/21. They claim they aren't Brexit related, however I am dubious. EU make similar changes in July 2021. So they mirror. If normal sales / VAT/GST taxes were LESS than 20% previously, there is loss.

Aka there is a major change from being charged NATIVE VAT / GST on sales to now paying recipient country VAT. This may mean a big hike in tax for sellers.Another clusterfuck for UK Small bz is Brexit VAT on EU imports + these VAT changes means useful Flat Rate Scheme is killed.