Brexit 2021 : UK Small Parcel VAT tax and Magento 2 , how to implement

Question

After struggling through a chaotic year, and keeping only small track of the comedy of horrors that is Brexit we find ourselves at the end of 2020 and its back.

As a small EU (Dutch) B2C website with some sales to the UK our Brexit preparation so far has been:

• At the end of 2020 set all taxes for the UK to 0% (outside EU), start writing CN23's as for any other outside EU country (including Norway/Switserland)

However, more information has been propping up about the small parcel tax that comes into force on January 1.

Detailed in #1 we need to the following:

1. Set all taxes to 0% for outside EU
2. Register for a British Tax VAT account
3. For orders under GBP 135 #2, collect a 20% VAT at point of sale (eg. our website)
4. Report the VAT to British tax office

Step #1 is trivial. However, Step 3 seems more than just a little complicated.

Are there any Magento 2 modules that can assist in this ?

Additional

#1 https://zonos.com/blog/2020/11/05/uk-vat-changes-after-brexit-what-does-it-mean-for-my-business/

#2 Ignoring the whole GBP 135 at what/whose exchange rate question for now

#3 Additional for those not up to speed on the Brexit/Small parcel tax: https://youtu.be/saKw6j836hw?t=883

Answer 1

There is EU VAT Enhanced for Magento 2 which can handle this.

It will check if the order subtotal is below 135 GBP (with currency conversion in the background) and then calculate VAT accordingly.

It will not help you with Step 2 and Step 4 of your list. Step 1 is not neccessary with it, as you still need a 20% rate for the UK for the case "order below 135 GBP".

Answer 2

I wrote my own extension to handle this scenario. It's flexible enough that it can be used for other countries with similar tax schemes. I'm yet to deploy it to a production site, so please use at your own risk. Also, I have only tested using tax-exclusive catalog prices. There may be some updates required to support tax-inclusive pricing.

https://github.com/micwallace/magento2-threshold-taxes