Great Britain left the EU on the 1st of February 2020 but for VAT purposes it will be treated as any other EU country till 31st of December 2020. After that day, if the transition period is not extended, Brexit will have impact on majority of the transactions including sales to private individuals (B2C).  

Distance sales after Brexit 

Distance sales is similar to intracommunity delivery but it is made to the buyer that is not a VAT payer and that is not obliged to report intracommunity acquisition in a VAT return. Distance sales is generally taxed in a country to which the goods are being sold and correct VAT rate for that country shall be applied. This means that if a company is selling goods to private individuals in different member state, it is required to register for VAT purposes in that member state. The only exception is when an yearly threshold of sales is not exceeded. This threshold varies for every member state from 35 thousand EUR up to 100 thousand EUR. Any sales below this threshold should be reported as domestic sales in the country from which the goods are being sent.  

The above rules apply to the goods sent from UK and to UK until December 31 2020. After the transition period starting from January 1 2020 distance sales shall be treated as import/export transactions. Sales to British buyers will have to be made using a custom agency and it will be treated as export with 0% VAT rate. The buyers will have to pay custom duties (if applicable). 

VAT refund for visitors to the EU  

Private individuals that do not permanently reside on the territory of the EU can reclaim VAT paid for the goods purchased in Poland when they are moving these goods in an intact form in personal luggage outside of the EU territory. In order to do so a purchase document with a stamp of customs and tax office is required.  

That means that after transition period ends, British citizens will be able to reclaim VAT from goods purchased in Poland and such sales should be reported in Poland with 0% VAT rate. 

Check our service Tax Advisory here