Reply To: Hi,I’m looking for some advice regarding collecting VAT (tax).As a result of Brexit – we (an NZ product manufacturing and retail business) will now be required to collect VAT for our UK customers. Despite wading through many online documents regarding this – and contacting NZTE – we are still left with many questions. (Eg: Do we need a UK bank account? How streamlined is the actual process of paying VAT – does it integrate in with Xero software etc? What are the other fiscal record-keeping obligations etc?)Most website say: “Refer to a Tax expert”.We are wondering:• Are there any businesses out there that have been through this process that we could perhaps liaise with regarding this? OR;• Does anyone know of any Tax Experts whom might be able to efficiently/effectively provide this information?Thanks!Terry


Hi Terry

I know we are in touch separately but I thought I would just add a note for completeness here.

Online marketplaces are the Amazon’s, eBay’s and AliExpresses of the world. They are platforms that aggregate products from multiple sellers and facilitate a sale to a customer. Many countries have introduced rules for VAT/GST (and even sales tax in the US) that puts the responsibility on the online marketplace to collect the relevant tax and pay it to the tax authority.

Providers like Shopify that enable the platforms for individual ecommerce sites should not be online marketplaces. They provide the infrastructure for individual businesses to sell directly rather than aggregating products from different vendors.

Speak soon

Indirect Tax Solutions