In 2021, how can sellers in the UK get a tax refund? What should I do if I declare for the New Year’s Eve?

763305893@qq.com
3 min readMar 10, 2021

Since the implementation of the new tax reform policy in the UK, many sellers have wondered, how can the tax I paid normally last year be refunded? The UK is a quarterly report. My quarterly report is from November 2020 to January 2021. How should I report?

1. New Year’s Eve Declaration

Since the United Kingdom has implemented withholding and payment, the method of reporting for new years is also different. According to this policy, sellers are divided into independent site sellers and OMP platform sellers.

1. Independent sellers

Sellers can declare according to the original tax rate, and the method of declaration remains unchanged.

2. OMP platform sellers

The OMP platform refers to platforms such as Amazon and eBay. Since 2021, since the value-added tax of this type of seller has been withheld and paid by platforms such as Amazon and Ebay, when the seller declares the value-added tax of the quarter, it needs to be divided into two parts.

1) November and December 2020

This part of the value-added tax is calculated according to the originally used tax rate, and the tax is paid to the tax bureau.

2) January 2021

This part of the tax has already been withheld by the platform, so there is no need to pay it.

OMP platform sellers do not include part of the taxes that have been withheld in January when they declare VAT.

2. Tax refund for sellers in the UK

Under normal circumstances, there are three ways for tax refunds in the UK Tax Office.

1. Check

The general tax bureau will send the refund to the seller in the form of a check, and then the seller will choose a bank to exchange it. According to the current situation, only British banks support exchange, not applicable to Chinese sellers.

2. VAT account

The tax bureau will keep the refunded money in the customer’s gateway account, which can be used to deduct the tax required for the next declaration. However, due to Amazon’s withholding and payment, this method is also not applicable to Chinese sellers.

3. Return to the seller’s bank account

Since withholding and payment has been implemented, the seller’s tax refund needs to be applied to the tax bureau on behalf of the seller. The tax bureau will return it to the bank account provided by the seller (usually return to a local bank account in the UK, if it is a third-party account such as a P card, you need to consult your tax agent), but due to some third-party collection The model is uncertain, which may result in a longer processing time for refunds.

However, these three tax refund methods have uncertain or inapplicable factors, and sellers need to judge which tax refund method they belong to according to their own circumstances.

The above is the answer to the tax refund for sellers in the UK and the new year’s declaration. For other VAT questions, you can click on the homepage to consult, and the cross-border weather vane will answer you in detail.

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