I sell second hand goods to UK and EU. Now we have left the EU I understand the margin scheme no longer applies and that items sent to EU will be zero rated. However, I understand that in order to tackle VAT fraud the EU will be expecting online platforms such as Ebay to collect VAT relating to any sale in the EU. This will obviously not be margin VAT but VAT on the whole amount. This will make sales to the EU unviable as the items we purchase do not have reclaimable VAT. Is my assessment correct? Is there any recourse for margin sellers?
You are correct. From 1 Jan 2021 goods eligible for the margin scheme in the UK become ineligible when sold into the EU, and vice versa. This is true whether you sell directly or via a OMP.
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