The United Kingdom's transition period following its exit from the European Union ended on 31 December 2020. From 1 January 2021, the United Kingdom is no longer be included within the EU for VAT purposes.
If you are a buyer within the UK, Envato will continue to charge VAT on applicable purchases at a rate of 20%. This will appear on invoices as UK VAT rather than EU VAT.
What does UK VAT apply to?
UK VAT is collected from buyers that reside within the UK that do not have a valid VAT registration number and will be applied on:
- Buyer Fees
- Handling Fees
UK VAT does not apply to Author Fees and SWIFT Fees.
How does it work?
If you are a UK buyer without a valid VAT registration number, UK VAT will be applied to your purchase at the applicable VAT rate of 20%. All prices and fees for transactions made through Envato Market shown on the site are exclusive of VAT.
If you are a UK buyer with a valid VAT registration number, you must account for your purchase under the reverse charge mechanism in your VAT return.
Should you require further information in relation to understanding your VAT obligations with respect to reverse charge purchases or how you are to account for VAT in your country, please contact your tax accountant or local tax office.