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I'm looking to buy a propain spindrift next year and struggling to understand the potential ramifications of Brexit on the buying process.
So assuming a worst case scenario and there's a no deal/WTO rules, what exactly would happen when you order from canyon/propain/raaw etc?
My very basic understanding is that prices will jump due to potential import taxes, along with the likely dive in the pound?
You won't have to pay VAT in Germany in theory.
You will have to pay VAT and Duty upon landing in the UK, plus handling fees from DHL. Unless Propain use a DDP courier where you pay Taxes and Duties at time of payment, but that's pretty unlikely.
Assuming the pound tanks (very likely) it will also be more expensive in real terms to you and it'll also probably take bloody ages to work it's way through Customs.
I would buy now if you can.
Obviously it'll vary enormously depending on what happens in the next two months, and potentially on where you are in the country.
Best case - if the mentalists, sorry "government", see sense, or if you live in Norn Ireland, or if they extend the current situation, is that there won't be any additional sales tax or duty to pay on your purchase, and it should come through as usual.
Worst case - your bike would probably get stopped by customs wherever it arrives into the UK and, given the volume of goods affected by this, would be delayed significantly. There may then be UK VAT to pay (albeit your initial price will be ex-sales tax), plus whatever duty is due on a WTO-traded bike.
So, that Moots frame might actually get cheaper if the cash of the pound has less impact that removing the 17% duty?
That pinkbike article is reassuring! Import tax was my main worry. I guess they'll be a small to moderate increase due to increased UK VAT over German VAT and the diving pound after Brexit.
Sadly I'm saving for a house deposit until April/may time so can't buy before then. Planning on getting it as a treat after a couple of years of hard saving.
Have it delivered to Donegal. Ride over border on a BSO and return on Propain (making sure it's nice and dirty).
Drive home trying not to look too shifty. And try not to piss off any of the paramilitaries doing it professionally.
Most of the extra hassle/cost will occur Deal or No Deal and I reckon the pound will lose value against the Euro/Dollar (as it has done for pretty much the last 20 years).
Either buy now, or accept you'll pay more.
It is going to be a s***show! Customs have decided that the exporter, or the seller has to pay VAT, this means that they have to register with HMRC. Obviously this costs them money. Next currently there is an exemption for low price items, that is being scrapped globally, so those £2 purchases from China are now duty payable! Everything under £135? Will require the seller to pay vat, I am assuming you will still get stung by the courier, someone will have to pay the duty as well. I posted a link in the Brexit thread from one of the accountants registering bodies that had a bit about it. You may well find companies will not sell to the UK because of the costs.
A friend bought a bike in the US, rode for a week and flew home with it in an evoc bag, no questions asked.
UK distributors are going to rob us blind in the new year.
You think our sport is expensive now? Just you wait.
Yes, not at all optimistic. I reckon lots of overseas companies will just not sell to the UK as its too much hassle to deal with the VAT. Anyone who does manage to buy something abroad will then get stung by the importer who will charge you duty and a hefty excess for the hassle of processing it.
Wiggle etc will have to up all their prices to cover the extra costs.
Plus the £ will tank even more, making everything even more expensive.
Brexit, the gift which keeps on giving.....
UK distributors are going to rob us blind in the new year.
Try again; they will pass on increased costs.
Look at the date on that Pinkbike article. It's a year old.
Bikes coming into the UK / EU from outside the EU currently have either 0% or 10.5% duty if from GSP nations and getting GSP rates, or 14% from non-GSP nations eg Taiwan (not the 17% in the PB article). GSP rates only work on sub Alivio-Deore level though.
If there's a Free Trade Agreement there will be no additional tariffs between UK and EU. If there's no deal then the global tariff rate will be 14% on anything coming into the UK from the EU or a non-GSP nation - same as the current EU duty rate. That could double up the duty on some bikes depending on their route to the UK market.
The anti-dumping duty on non-E bikes from China may end with the transition period which might create competition.
Brexit, the gift which keeps on giving…..
Why were we not warned of this?!?!
Try again; they will pass on increased costs.
Nothing to do with that. It will be reduced competition.
Currently, even now, most, but not all things are cheaper from our cousins across the water.
It will be harder and more costly to shop outside the uk market and they will take advantage of that.
I've decided to think of bike stuff after Brexit like it was during lock down.
Harder to get in general and likely to be dearer, even second hand.
I’ve decided to think of bike stuff after Brexit like it was during lock down.
Harder to get in general and likely to be dearer, even second hand.
You can apply that to everything you buy.
Except Soy sauce, which I hear is going to be cheaper.
https://twitter.com/tradegovuk/status/1321187022883663873
Actually thats misleading.
Currently 0% paid on Soya sauce, under WTO would be 6%, our fabulous government negotiating team have got it to stay at 0%. So not cheaper, the same price. woohoo!
Would be interesting to create a mountain biker's inflation basket to see how this pan out, like the ONS does. Suggestions for what to include?
Does Shimano stuff get cheaper with the new Japanese trade deal?
Suggestions for what to include
Coffee
Cake
Pastries
Gaggia classic
Bialetti stove top
Overpriced dog and accessories (no lead obviously)
Log burner
T5
Maybe a knackered 9sp lx mech and some 26x2" tyres?
@wzzzz Keep reading the Soya(sic) thread.
Most of our Soy sauce comes from the Netherlands so despite Japanese deal its likely to go up 6%.
Does Shimano stuff get cheaper with the new Japanese trade deal?
Only relates to the higher end stuff that's made in Japan, and only if Madison start bringing it in direct from Japan i/o from Shimano Europe, if the Japan trade deal gives bike parts a lower rate.
Does Shimano stuff get cheaper with the new Japanese trade deal?
Doubt it, most of it is made in Taiwan or Malaysia, shipped to the Netherlands and distributed onwards from there. XT or XTR might be cheaper.
No best you can expect it will stay the tariff. But if the pound drops then it will cost more.
I have seen a frame in Germany that I'm thinking of ordering. Does that mean because it has had VAT charged in Germany that I won't have to pay any VAT and Duty when it arrives in the UK?
Correct. If you buy it now. All changes in a few weeks time.
Companies stopping selling to the UK is a load of horse shit. These companies will sell all over the world and be used to dealing with the shipping customs logistics already. We buy loads from the European union and our suppliers are all good to go with whatever is needed. Yes there will be a price to pay for it.
Anyone else been stocking up just in case?
a load of horse shit
Some retailers based in countries both inside and outside the EU will stop selling direct to UK consumers… because… despite what you claim… the situation for small orders into the UK will not be a replication of circumstances those retailers already face for other countries. Look into the new VAT registration requirement for retailers selling into the UK post transition.
Hang on… we have a thread about it already…
Companies stopping selling to the UK is a load of horse shit.
It's not because they still don't know what rules they will be trading under! I'm looking to buy a bike from one of the German manufacturers that doesn't have a real presence in the UK and the build date is estimated to be in February next year. I enquired about how Brexit will/could affect the price and they advised me to hold off ordering until the new year as they should then know what their costs will be or even whether they will be selling to the UK at all! I could order now and figure it out after Jan 1st but I'd rather just wait for the dust to settle and not mess them around with refunds etc.
Opposite issue for me . I often order brake pads and other small bits from the Uk .
Companies stopping selling to the UK is a load of horse shit.
Bigger companies can absorb the costs of the extra paperwork required
But smaller ones have already been saying that the past brexit rules are too burdensome & will no longer be able to trade with UK
Glad I already bought my road bike. It's apparently in NW London now so even if it takes weeks to get here it's already avoided duty.