UK Leaves the EU: What Changes in the VAT Add On

As of January 1, 2021, the United Kingdom no longer falls under the European Union. As a result, UK VAT numbers return an invalid result when passed through the European Commission’s validation service. This article explains a workaround needed for membership sites to collect UK VAT numbers.

VAT Add On v0.7 Release Notes

At this time, the HMRC provides no way for businesses to validate a UK VAT number. This means that version 0.7 of the VAT (Value-Added Tax) Add On cannot verify UK VAT numbers against any validation service. As a temporary measure of validation, UK VAT numbers will instead be checked for proper formatting. These changes allow you to continue accepting a VAT number for UK residents through the Add On.

PMPro is prioritizing a new solution for handling taxes worldwide through Avalara’s AvaTax service. AvaTax helps your business manage real-time sales and use, excise, GST, VAT, and other tax types across the world. This solution will replace the VAT Add On and any other custom tax structures you have created.

How to Remove UK from VAT Country List and Tax Charge

Since UK VAT numbers are not validating, you may instead decide to stop collecting tax for these unvalidated customers. Use the recipe below to remove the GB country code from the “County of Residence” dropdown shown on your membership checkout page.

As a side note, we recommend consulting with a local accountant who specializes in taxes to see if there is anything else you need to consider. We are not tax professionals and cannot advise you on tax requirements for your business.

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