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How does post-Brexit VAT work for my Magento store?

Post-1 January 2021 the UK left the EU VAT area, so:

  • UK→UK B2C: standard 20% VAT, register at £90k turnover (2024+ threshold).
  • UK→EU B2C: use the EU IOSS scheme for orders under €150 (one VAT registration covers all 27 countries) or register per-country above that.
  • UK→EU B2B: zero-rated with VAT-number validation; reverse charge.
  • EU→UK B2C: overseas sellers register for UK VAT below £135 thresholds.

We rebuild Magento’s tax engine with these rules, plug in EU-OSS / IOSS schemes, and validate VAT numbers via VIES (EU) + HMRC (UK). MTD invoicing wired into QuickBooks / Xero / Sage.

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