The following recommended changes to the Tradebox software only need to be made by Tradebox users based in England, Wales or Scotland.
Tradebox users based in Northern Ireland DO NOT need to implement any changes to Tradebox. More advice for business based in Northern Ireland can be found at https://www.gov.uk/guidance/trading-and-moving-goods-in-and-out-of-northern-ireland-from-1-january-2021#paying-vat.
The UK officially left the EU on 31 January 2020 and most of 2020 has been spent in the transition period. This ends on 31st December 2020, meaning new VAT rules will be implemented for UK based sellers exporting goods into EU countries. From 1st January 2021 all sales exported into the European Union should be treated in the same way sales exports are for non EU countries; zero VAT rated.
This article provides guidance on how to configure Tradebox One to ensure that the VAT on all EU sales is correctly calculated for these two periods that have different VAT rules.
For more in-depth guidance on VAT for both sales and purchases we would recommend the following Sage article; https://www.sage.com/en-gb/blog/customs-and-vat-after-brexit/#vat-anchor-link. Advice and guidance can also be gained from the UK Government's website; https://www.gov.uk/prepare-to-export-from-great-britain-from-january-2021
Tradebox One Changes
- In the Details section of each sales channel in Tradebox One there is a new field called "Ignore Orders Dated After". If you cannot see this field you will need to upgrade Tradebox One to the latest version. You can determine what version of the software you are using by going into the Support page in the Tradebox One application.
- Enter 31/12/2020 in this field to prevent any sales being downloaded after this period. Sales from EU countries that occur after 31/12/2020 need to be calculated with zero VAT.
- When you are satisfied that all sales have been downloaded prior to 01/01/2021 you can remove the EU designations from all EU countries in the Countries Table. This can be found in Configuration > Organisation > Countries. Each EU country has a blue tick against the EU column. To remove this designation, double click the country, uncheck the EU box and select Save. Repeat for every country that has a tick in the EU column in the table. At the end of this process there should be no countries in the table with an EU designation. Note: For now, you will be unable to remove the tick in the EU box against the UK. This will be removed automatically in a future update but for now this has no impact on VAT treatments and can be ignored.
- In each sales channel in Tradebox go to the VAT tab and ensure that the "All EU Sales are B2B" checkbox is unticked. Then Save
- Finally, go into each channel and change the date in the "Ignore Orders Dated After" field to a date in the future. All sales downloaded from this point will have VAT calculated based upon the new rules.