IMPORTANT NOTICE: As the new Brexit Transition guidelines are not 100% clearly defined (by UK or EU), we recommend all vendors first consult with their legal accounting teams to determine the specific needs for your business UK VAT.
At this time, we are advising vendors who may be affected by this UK VAT change to consult with their legal teams and take the possible actions listed below to help accommodate these tax changes as we understand them so far.
Since there is still uncertainty with the specific transition changes, these recommended options below may not fit all vendors’ needs, but rather are just recommendations for possible options now to help accommodate the transition.
Final decisions for needed actions should come from your legal accounting team before making any changes to tax profiles in Paykickstart.
IF YOUR BUSINESS IS GENERATING LESS THAN 85K POUNDS IN THE UK.
IE: Your company does not require VAT to be charged in the UK
if you are selling less than 85,000 pounds in the UK, the default EU VAT profile no longer includes UK VAT tax and can be used on your products to charge just EU countries VAT Tax: https://support.paykickstart.com/knowledge-base/creating-a-tax-profile/
IF YOUR BUSINESS IS GENERATING MORE THAN 85K POUNDS IN THE UK
IE: Your company does require VAT to be charged in the UK
Continue charging VAT for the UK; you now have the ability to enable default UK Vat on a product to allow UK customers to enter a Valid VAT id and not be charged Vat or be charged Vat if no or incorrect VAT id.
*NOTE: For customer subscriptions originally using the EU VAT tax profile, vendors will need to create a. new product that has a UK tax profile and upgrade UK customers to this new product to continue charging UK VAT: https://support.paykickstart.com/knowledge-base/manage-upgrade-downgrade/
You may temporarily need to generate your own invoice with your specific UK VAT number instead of using PK’s invoices, which will show the VAT number you set up in My Profile* :https://app.paykickstart.com/admin/account
*(assuming, of course, you are not already using a UK VAT Number in My Profile.
i.e your are a Dutch vendor, but now need to list a UK Vat id as well)
The Paykickstart development team is currently investigating possible system logic changes to help accommodate the need to support multiple tax numbers, as would be required in this case regarding vendors selling under and over 85,000 pounds in UK revenue as outlined here: https://www.gov.uk/vat-registration
Unfortunately, any updates of this manner are large changes to our system logic and will take time to fully implement after determining the best possible actions to assist vendors with UK VAT.
Since transition changes are also not yet 100% clarified by the associated governments, this update will not be live on January 1st, 2021, when the transition begins effect, which is why we are advising vendors to consult with their legal teams and take the current needed actions deemed by their legal team so they can continue handling customer payments in the UK until Paykickstart can 100% accommodate the VAT logic changes for the UK based on the finalized legal requirements.