So from 1st July 2021, the EU expects ALL businesses to register for IOSS and collect VAT according to the location of their customer - although this is strictly optional.
Kashflow still fails to deal with sales from the UK to the EU correctly - we left the EU 6 months ago and yet ALL sales to the EU remain stuck with a default 20% UK VAT rate.
Kashflow now needs further changes to allow businesses to say if they are registered for IOSS (or OSS within the EU) and charge VAT according to the location of the buyer OR at 0% if not registered.
Reporting also needs to handle the option to provide a monthly report on sales to each EU country with details of the VAT collected for each country (if relevant).
Rich Mellor
