Can anyone explain ...
 

[Closed] Can anyone explain how to work out final cost of buying items from EU ?

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Apologies if already discussed but I can't find definitive info regarding this although I know it's early days.
If I buy any item from the EU am I not going to know the final cost until it arrives or the courier/ post service contacts me regarding extra charges incl their own charge for charging me + possible vat / import charges and whatever else they can tack on! I don't feel happy about ordering anything at the moment tbh if the cost is unsure. Anyone in the know ?

 
Posted : 17/01/2021 6:22 pm
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Depends what it is and it’s country of origin. This isn’t necessarily where you are buying it from.

 
Posted : 17/01/2021 7:12 pm
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Theres an article here- https://www.theguardian.com/politics/2020/dec/28/brexit-customs-duties-to-apply-to-eu-goods-worth-more-than-390. It looks like they are expecting the seller to collect the vat on behalf of the uk government - i've noticed this on some of the recent ebay listings.

 
Posted : 17/01/2021 7:27 pm
 Drac
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If you can could you let Boris know.

 
Posted : 17/01/2021 7:28 pm
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It is not currently possible to predict what you will be charged until you receive the delivery notification along with any fees that apply or have been levied.

 
Posted : 17/01/2021 7:35 pm
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020 7925 0918

 
Posted : 17/01/2021 7:36 pm
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I think it is possible...if importing from outside the EU you just need to look up the commodity code of whatever you are importing. Presumably the commodity codes have been updated for the EU. The question is that presumably the retailer needs to advise if it was predominantly made in the EU and therefore duty free, or if its imported and therefore liable for duty.

I guess this is why some are not shipping to the UK as they haven't finished (or don't want to) going through their products and working out what should incur duty.

Then add the VAT (I think the VAT also gets charged on the postage) and then, you need to estimate the handling charge that the courier will levy for paying your duty where it enters the country.

The courier will give you the duty/vat/handling charge total and hold the item until you pay.

 
Posted : 17/01/2021 9:12 pm
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you need to estimate the handling charge that the courier will levy for paying your duty where it enters the country.

This annoys me. (The concept, not the poster). Your contract is with the company selling you the item. You have no direct contract with the shipping company. You have paid postage to the company selling you the item. The courier needs to reclaim any "admin" costs from the supplier, not you, otherwise it's just a ransom. The supplier can factor in admin costs into the shipping costs they charge you.

Pre-brexit, I successfully challenged a courier on these "handling" costs using the above reasoning and told them to do one. I did of course still have to pay the import charges (it was a jersey from NZ), but because I had no prior knowledge of what their handling charges would be, it wasn't reasonable for them to try and reclaim them from me.

 
Posted : 17/01/2021 9:57 pm
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Well it seems that the answer is no ...you can't buy anything and know the full cost until it arrives which is a joke. The item I wanted to buy was impossible to find in the categories or search facility of codes ..so a good start to the reality of Brexit.

 
Posted : 17/01/2021 10:07 pm
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I can't even found out if there's a threshold below which you're not charged but wouldn't be surprised if a lot of couriers and postal services use the uncertainty to boost their profits by( as mentioned earlier) "holding you to ransom" and not releasing your item until they extort whatever they can get.Again ..it's a 'kin joke.

 
Posted : 17/01/2021 10:13 pm
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Take pre-deal price and double it.

 
Posted : 17/01/2021 10:31 pm
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..it’s a ‘kin joke

Will of the people.

Who knew what they were voting for apparently.

 
Posted : 17/01/2021 10:34 pm
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Will of the people.

Who knew what they were voting for apparently.

As much as I'd enjoy joining you in a bit of brexiter bashing (they are idiots after all) this will be one aspect of leaving that will completely pass them by. When did any leave voter do anything as la-dee-da as 'import' something from outside of the uk? Your average leave voter is currently bricking it from the threat of covid but still shuffling their built-for-CV19 gut around the supermarket (with his nose poking out from his mask obvs) because the concept of click and collect is completely beyond them. Online ordering something from another country is so far outside their life experiences as to be a non issue.

 
Posted : 17/01/2021 11:44 pm
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I ordered something from Ireland, paid without their VAT. Then had DPD collect the 20% VAT on the item, plus £1.50
processing fee. Simple...

 
Posted : 18/01/2021 12:01 am
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Think of a number, double it, add the number you first though of, and add a bit extra for the Post Office as a handling fee, that ought to do it.

 
Posted : 18/01/2021 12:03 am
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Simple…

But variable. Just because your item was tariff free, doesn’t mean that the OP’s will be. And did you know in advance that their fee would be £1.50? And do you know whether your pay VAT on arrival method is acceptable for all values of goods from all EU countries, and whether it is just available for a short grace period, and if it is, when that period comes to an end?

 
Posted : 18/01/2021 12:05 am
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Its a minefield at the moment isn't it.

(edited cause I think I got it wrong)

 
Posted : 18/01/2021 12:10 am
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Frank said double it, my multiple is 1.5 made up of vat, delivery, handing fee, mistakes (which you will have to pay for)

Convert is correct the great unwashed dont import "stuff" not from Johnny Foreigner... they let Amazon deal with that.

 
Posted : 18/01/2021 12:29 am
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So my bikeinn has import fees paid and a picture of the package has a royal mail 48hr delivery ticket on it with a UK return address. Even though it has come via NLpost from spain. And GBP17.99 which google translate tells me is import fees.

Do Bikeinn bundle packages into a larger consignement send to UK then forward from there?

 
Posted : 18/01/2021 3:16 pm
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So my bikeinn has import fees paid and a picture of the package has a royal mail 48hr delivery ticket on it with a UK return address. Even though it has come via NLpost from spain. And GBP17.99 which google translate tells me is import fees.

Do Bikeinn bundle packages into a larger consignement send to UK then forward from there?

Plausible. Also possible the postage is paid for via NL post but issued in the UK.

It sounds very much like your item was shipped from within the UK though.

If that item was posted in the UK [I'm pretty sure] they can't charge you import fees on top, they can and should roll them into the price but there is no import fee to be paid on items sent within the UK (even NI, which requires customs declaration, doesn't attract fees). You're not the importer. Someone else up the line was and they have to have paid those amounts which are due.

Should you be somehow entitled to a rebate of those duties, (for argument's sake you simply post them straight out to the EU [which wouldn't qualify for rebate but...]) if its shipped inside the UK you haven't paid any duty so you can't reclaim it so charging you duty is I'm pretty sure, a big no no. - bonded warehouses and other exceptions will apply but they're technically not in the UK for tax and duty purposes.

edit: you mention Spain sorry so ?possibly? it's physically sent from Gibraltar, I'm not sure how that would work. Very much a guess but quite likely it's liable for customs on leaving Gibraltar but not entering it.

 
Posted : 18/01/2021 3:34 pm
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Three hundred thousand, and thirty four, nine hundred and seventy four thousand pence pounds

 
Posted : 18/01/2021 4:03 pm
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I am from the other thread started this morning regarding the import VAT due from Germany. I have looked back at the transaction and if the item was going to be charged VAT upon entering the UK then VAT should not have been take at checkout initially or if it is then it needs to be refunded back to me now. In effect it is being charged twice and with the hassle and extra expense incurred now from UPS putting the handling fee on.

 
Posted : 18/01/2021 4:44 pm
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In effect it is being charged twice and with the hassle and extra expense incurred now from UPS putting the handling fee on.

Does your invoice from Germany show UK VAT?

It should be fairly simple to sort with the supplier but ups are unlikely to let you off the hook, if it's been shipped as vat unpaid ups will want paying now its in country.

 
Posted : 18/01/2021 4:54 pm
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They'll just be pocketing the German "vat" portion to make more profit, rather like Planet X are doing for sales into Europe

https://road.cc/content/news/planet-x-customers-continent-paying-uk-vat-280099

 
Posted : 18/01/2021 4:57 pm
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As much as I’d enjoy joining you in a bit of brexiter bashing (they are idiots after all) this will be one aspect of leaving that will completely pass them by.

Along with every other aspect but at least there are now less foreigners in the country (well they assume there are but wouldn't notice or know how to check) and the british fish are happier.

Seriously though, I imagine a fair few Brexiters do actually buy stuff from EU online shops and I have to admit I didn't think about VAT issues

 
Posted : 18/01/2021 4:59 pm
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Something I hadn’t thought about until now, if I buy something from Europe ex VAT, then pay VAT on delivery, what do I do if I need the return the item for a refund?

Tough shit or can/do I claim the VAT back (slightly less tough shit, but still shit)

 
Posted : 18/01/2021 5:00 pm
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Bikeinn shows tracking via NLpost and package originates in Spain.

 
Posted : 18/01/2021 5:05 pm
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I noticed there is a commercial invoice on the reciept saying:
Commercial Invoice
The products of this shipment are of preferential European origins.
The amount of tax charged is exactly 20% so I heard discussed the German rate for VAT is 19% so it does not match up with that. It just states Sales Tax and the amount paid at point of purchase is the exact amount UPS have invoiced me for

 
Posted : 18/01/2021 5:10 pm
 Sui
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The products of this shipment are of preferential European origins

that will show that there should be no, or minimal tariffs applied to the goods coming in which is a % based on the commercial value, bike parts fall under tariff heading 8714 - in this case 0% so no fee.

The amount of tax charged is exactly 20% so I heard discussed the German rate for VAT is 19%

this is the VAT. 19% is german - you should not have been charged this amount, however when it gets to the UK, the UK VAT (20%) is applied to the following;

Commercial value of goods (i.e. what the seller is selling to the buyer at before taxes and shipping)
+
Value of tariff

you will then have a handling fee which will also have VAT applied to it, this can ange anywhere from £1 - £250 depending on size and type of shipment.

an example being;

goods are €100
Shipping is €10
Tariff is 4%

so €100 + €10 * 1.04 (4% tariff) *20% (UK VAT) =€137.28 before handling fees.

 
Posted : 19/01/2021 2:25 pm
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( ( (€100 + €10) * 1.04 [4% tariff] ) + X [handling fee] ) * 1.2 [20% UK VAT] = ...

And X, the handling fee, is the bit that has the potential to surprise and annoy people the most.

 
Posted : 19/01/2021 2:49 pm
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I've got a Propain on order - i mistakenly thought the trade agreement would save me from import taxes, but upon further reading it appears not.

Despite it coming from Germany, the product origin is Taiwan so falls outside of trade agreement.

At point of purchase I paid:
20% UK VAT
£175 shipping which I believe / hope (but unconfirmed) was recently increased to include handling fees.

I now expect to see an invoice for 14% import duty on top of this.

 
Posted : 19/01/2021 3:23 pm
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And X, the handling fee, is the bit that has the potential to surprise and annoy people the most.

Indeed. But as I said earlier, no end consumer needs to be paying these after the point of sale. The supplier should be including these costs and the courier billing their client, not the consumer.

 
Posted : 19/01/2021 5:01 pm
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I now expect to see an invoice for 14% import duty on top of this.

You also need to pay vat on that 14%.

I noticed there is a commercial invoice on the reciept saying:
Commercial Invoice

That will declare the value of the shipment. That value is ex vat and duty. It should not include the 20% you've paid. But...
The difficulty is if its over £135 you should be paying vat (and duty at probably 0%) on entry so the shipping agent will bill you.

I'm not sure how you go about declaring the VAT as paid in advance as a supplier - I'm not even sure you can declare it. I assume [German supplier] would need to be billed by the shipper at week or month end for payment of vat and duty.

But as I said earlier, no end consumer needs to be paying these after the point of sale

The difficulty there is every carrier will have a different charge. With the same carrier that charge will be depending on number of codes in your shipment etc, so buy a bike you might pay £8 for the privilege, but a tyre, a seat clamp, a brake lever and 4 spokes could be £32 as they're [conceivably] 4 different codes.

Also the handling charge is on the duty and vat. That's yours, you might not get a choice in who is carrying the stuff but, by ordering from abroad, you sign up to paying that. Its the importers legal burden. Its not the senders, it's not an up charge on the senders contract of shipping, its an up charge on the receivers contract [with HMRC] to pay duty and tax.

This is something commercial companies have been doing for years whilst people bitch and moan t that it's cheaper to buy d direct from x y or z. The reality is its very unlikely to stay cheaper or easier to avoid using UK wholesalers distributors etc for very long because the ball ache you could avoid but they can't, it's now also a problem for you.

 
Posted : 19/01/2021 5:20 pm
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Its almost comical now that i`ve got UPS visiting two days in a row to ask for these fees.
Its a mess. I have emailed the German retailer and they have been very unhelpful so its not looking good right now. I was after some explanation/detail and got a very simple email just with a link forwarding me to my UPS tracking details saying I am responsible for them once imported. Very poor but they won`t be hearing the last of it or from me thats for sure.
I rang UPS and explained that I had paid 20% VAT at point of purchase, they have asked me for the UK VAT registration details for the German retailer and said it may be possible to chase it up that way. In the short term the fees are going to have to be paid I think, as another poster mentioned once they are imported it is the importers responsibility. But regarding the money paid at point of purchase then that needs to be sorted out. I will have to contact the German retailer again. I think usually say when someone purchases from the US there is usually tax charged and no doubt they just say its not their problem. The problem in this case is they have a pull down option for NON EU countries and that puts the item in cart without adding the tax.
To me it seems currently like they are not recognising the fact that all UK transactions are going to be subject to a further 20% VAT charge upon import so im not sure where it leaves them charging it upfront initially still. It will take some further sorting out im sure yet.

 
Posted : 19/01/2021 8:55 pm
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It'll be a lot.

I did two US imports last year. No EU source at the time.

a pair of special size ball bearings
£67 all told
of which £12 was customs and £12 parcelfarce handling
and around £15 slow boat shipping

a pair of special order hobby bits, $40 each w/o tax
£108 all told
of which £15 customs and £8 RoyalFail handling
and again around £15 for slow boat shipping

 
Posted : 20/01/2021 10:30 am
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I ordered a £445 item from bike-discount (£599.99 cheapest in the UK but out of stock) on Sunday just gone. The price paid was ex VAT as it was being delivered the UK. The parcel was shipped by DHL Germany and then handed to ParcelForce once it landed in the UK.

I fully expected to pay VAT, 4% duty as it wasn't a EU manufactured part plus ParcelForce handling fee. Was watching out for an email from ParcelForce requesting payment before goods were released.

The part has just been delivered and I've not been asked to pay anything further; seems like I've got away with one!

 
Posted : 21/01/2021 11:43 am
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Can anyone explain how to work out final cost of buying items from EU ?

No

 
Posted : 21/01/2021 11:49 am
 Spud
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Well I've had an order cancelled from Sunglass Hut, who I've ordered from several times, I did wonder if they would as they have shipped from Italy in the past. Assume it just isn't worth it anymore with the hassle.

 
Posted : 21/01/2021 2:02 pm
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I ordered a £445 item from bike-discount (£599.99 cheapest in the UK but out of stock) on Sunday just gone. The price paid was ex VAT as it was being delivered the UK. The parcel was shipped by DHL Germany and then handed to ParcelForce once it landed in the UK.

I fully expected to pay VAT, 4% duty as it wasn’t a EU manufactured part plus ParcelForce handling fee. Was watching out for an email from ParcelForce requesting payment before goods were released.

The part has just been delivered and I’ve not been asked to pay anything further; seems like I’ve got away with one!

You might get a letter from parcelforce in a week or so asking you to pay thier fee for handling.

 
Posted : 21/01/2021 2:12 pm
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It's not so hard, is it?

Almost any item will have VAT applied to it. There are some things like helmets, and items with a value (including shipping) less than £15 which are exempt, but in the main, there'll be 20% VAT.

If the item is above £135 there will also be duty to pay. The duty will vary dependent on the type of goods and their determined origin.

For most bicycle related items (maybe not clothing) this will be <5%.

Then add the handling fee. The most expensive of these are usually FedEx and RM, but both are less than £20.

In the end, stuff from the EU, will be around 5% more expensive + the handling fee + the increased cost of shipping. It will also be substantially slower as it can take PF et al a good few days to sort out all the paperwork and finances.

 
Posted : 21/01/2021 2:30 pm
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It’s not so hard, is it?

Well, it’s not simple, as all the gross simplifications in your post make plain.

 
Posted : 21/01/2021 2:33 pm
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There'll be a process to claim back refunds of duplicated Vat.

If the seller in Europe charges (EU)VAT then presumably the buyer in the UK will need to contact the seller to get the refund. The buyer may need to provide evidence of the (UK)VAT being charged to them (by the courier) to help explain to the European seller that VAT charges have been duplicated.

If the courier charges (UK)VAT on top of the price of the goods+(EU)VAT then that'll be a ball ache to sort out. The buyer would then not only need to contact the seller to claim a refund of the (EU)VAT and request an updated invoice, but the buyer would then need to claim a refund off HMRC of the extra (UK)VAT that had been paid on the goods+(EU)Vat. The original invoice from the seller plus the invoice from the courier will be the evidence required.

I'm no authority on this but these would be the steps I'd attempt to follow.

The duty and courier charge are things that everyone that has purchased goods from outside the EU pre-Brexit should be used to anyway but with the slight variation on duty dependent on the goods origin of manufacture.

That buyer above who claims to have received goods having not paid any VAT should (I hope) receive a letter in the post from Parcelforce demanding the UKVAT is to be paid.

 
Posted : 21/01/2021 3:19 pm
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Some real life examples in this article...
https://www.bbc.co.uk/news/business-55734277

 
Posted : 21/01/2021 3:27 pm
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The part has just been delivered and I’ve not been asked to pay anything further; seems like I’ve got away with one!

From distant past experience when I used to import stuff often from outside EU, Parcelforce I was in the clear if they haven't demanded I pay on receipt, but almost always they charged me if it was due, and the handling fee was twice that of Royal Mail.

Royal Mail was a lottery depending what gets selected for charges, but most stuff avoided it.

All the other main couriers either charged up front or sent me a bill later and I'd always get charged. Some also made their own judgement on value rather than what was declared.

Unless I really needed insurance of a courier I tried to get the sender to use something that would arrive via Royal Mail (eg in US, USPS usually okay, but avoid any option for express or expedited delivery as that came via ParcelForce once in UK).

 
Posted : 21/01/2021 3:29 pm
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It's the handling charge that is the killer for relatively low value purchases. Basically if the EU business doesn't collect the VAT for the UK gov't( and I doubt unless they do a lot of business with the UK they'll bother) then the courier will do it and add their exhorbitant charges ..even if the vat is £2 making a £20 purchase perhaps double once arrived.

 
Posted : 21/01/2021 6:46 pm
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We faced the same issues living in Switzerland and importing from the EU. The only sure fire way to know is to buy only from vendors that take care of all shipping/importation charges etc at time of purchase (or at least make it very easy).

This turned our to be pretty much all of the main ones (CRC, germans, French etc) for bike stuff, and shops like M&S, next etc.

I am not a Brexit fanboy, but if EU companies could get it sorted for the tiny amount of custom in CH, they will pretty quickly get it sorted for the UK. They will get there soon, it's just new.

 
Posted : 21/01/2021 7:44 pm
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I supect you were in Switzerland before Jan 2019, big_scot. Since then the VAT rules have become much like the post Brexit rules for the UK: VAT paid to the courrier if you buy from a company that sells less than 100 000SF into Switzerland, only bigger companies pay it direct. Same problems with VAT being billed twice and with deliveries coming from different countries to where the order was placed. Amazon gave up on selling goods into Switzerland because of the complications and I believe they're quite big.

https://www.tdg.ch/suisse/achats-ligne-tva-couter/story/11521738

 
Posted : 21/01/2021 10:10 pm
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Hi just posting this here as the cougar closed my topic.

Where I work we send out branded promotional materials to lots of events around the world including the EU. When we post to China we have to list what’s in each box.

I’m now being told that posting to the EU I’ll have to list what’s in each box and each items country of origin. Is there any truth to this? If there is I imagine a lot of these materials are made in Asia but possibly have the branding done in the UK in which case that muddies the water a bit.

The materials are given away for free but obviously have a value. I’d like to avoid having to further paperwork as it gets shoehorned into my department.

Do FREE materials even incur import tax?

Thanks for any advice.

 
Posted : 21/01/2021 10:51 pm
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Do FREE materials even incur import tax?

Import to UK, maybe. They would be treated like gifts I would think. Gifts still attract duty (though can have a higher allowance before due, but it has to be for personal use for that).

The recipient hasn't paid for them but there's a value and depends on the value and duty rate for the item. Then VAT is chargeable on shipping and fees even if not the item itself.

Duty itself is largely about competition and leveling the playing field. If an item is produced in the same country the duty on an import may be high else it could undercut the local price. If it's not made local, the duty may be low.

 
Posted : 22/01/2021 10:45 am
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I pretty much guessed it would be a shit show, I bought a bike from Germany for Xmas for my daughter, it was pretty easy, frankly it was harder swapping the brakes over.

Now I can't do that, I have to 'import' a bike from Germany.

I guess it'll go one of a few ways, we'll stop buying stuff from retailers in the EU as it's a lot of faf or prohibitively expensive, which I'm sure was the goal of some Brexit supporters, or smart retailers will be able to calculate the full cost for us and effectively collect UK VAT on our behalf and pay it onto the courier, or whoever else.

Personally, I think the days of buying up cheap bits from EU retailers, or frankly EU retailers who sell the little odds and sods the UK retailers don't want/like to sell is over.

I wonder how this is for CRC, they're based in NI aren't they? Both in and out of the EU at the same time (is that right) does it give them a trading advantage, or a logistical and paperwork nightmare. Can they land stock in the Republic and simply drive it over the open border to the UK?

This sort of shit won't make the papers, and yeah Leaver voters tended to be older and less Tech savvy, I doubt many will notice unless Wayfair are based in the EU.

 
Posted : 22/01/2021 11:15 am
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When we post to China we have to list what’s in each box.

The process is now the same. You should have been declaring country of origin etc on those already.

If this is a single pen etc. In a "look what we can do", it's commercial samples and there's are specifics which apply.

I wonder how this is for CRC, they’re based in NI aren’t they? Both in and out of the EU at the same time (is that right) does it give them a trading advantage, or a logistical and paperwork nightmare

Second option. NI has been screwed. Brexit has likely done more for a unified Ireland than anything else in the last 100 years.

 
Posted : 22/01/2021 11:16 am
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More articles appearing on BBC re all this bollocks and how disgruntled both customers and vendors are with the whole thing . Dutch bike bits for example are now exporting to every country in the world except the UK as HMRC want to charge businesses in the EU to collect VAT on their behalf.

 
Posted : 22/01/2021 11:20 am
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lmost any item will have VAT applied to it. There are some things like helmets, and items with a value (including shipping) less than £15 which are exempt, but in the main, there’ll be 20% VAT.

VAT charged on items under £15 now, no exceptions or waivers.

 
Posted : 22/01/2021 11:31 am
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Thanks @dangeourbrain comercial sample is a good term. Something I can look into further.

 
Posted : 22/01/2021 12:44 pm
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I can't promise they're good specifics but you do declare them differently...

 
Posted : 22/01/2021 12:49 pm
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I believe Wayfair are based in Germany.

 
Posted : 22/01/2021 1:06 pm
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VAT charged on items under £15 now, no exceptions or waivers.

So on any purchase, however small , if VAT is due but not collected by the EU vendor you can expect an extra handling charge which could be up to £20 ( figures of £12 to £15 seem common ) for the courier / postal service collecting the perhaps miniscule amount of Tax owed? This is ridiculous.

 
Posted : 22/01/2021 7:29 pm
 mc
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As it stands, any non-UK business selling into the UK, has to register for UK VAT and charge the customer VAT for any goods with a value less than £135.

Over £135, it's up to the customer to pay the import duty/VAT (along with the inevitable courier handling fee).

The only part of this that is actually Brexit specific, is the UK have introduced it 6 months ahead of the EU - https://www.pwc.ch/en/insights/tax/new-ecommerce-eu-vat-rules-july-2021.html

Ultimately, it's to stop imports from being under declared, and level the playing a bit for EU based companies who are fully declaring goods values.

 
Posted : 22/01/2021 8:46 pm
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Good explanation MC. I hate brexit but most of the complaint aren't due to brexit. I think it will get better once everyone gets used to it and efficiencies and competition lowers courier charges.
I'm still in the dark to whether any of our EU customers have been charged fees as well as import vat so it's equally as opaque the other way round.

 
Posted : 22/01/2021 9:34 pm
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As it stands, any non-UK business selling into the UK, has to register for UK VAT and charge the customer VAT for any goods with a value less than £135.

How is that going to be policed?! Loads of sellers won't register because of the hassle/ costs or simply that they can't be bothered. I'm sure they'll still accept your order though and then you'll be forced to pay the heavy "handling" charge on top of a possible miniscule amount of VAT that's due once it arrives in this country. Johnson said VAT will be collected by the vendor but that's bullxxxx...they'll only do that if registered and small vendors offering more choice may not be interested in doing so .

 
Posted : 22/01/2021 9:36 pm
 mc
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From what I understand, it's essentially going to be the same as what was introduced for digital goods a few years ago, whereby you have to pay VAT in the country of consumption, not the country of sale.

I'd imagine policing will be done randomly as it is just now, but for the big sellers, it simply won't be worth the risk of all their shipments being targeted, because they've be found to be fiddling the figures.
My last major shipment from China got held up for two days, as the container it was in was targeted by customs due to another shipment within it, so the transport company couldn't open it until customs could remove the targeted shipment. (my part of the shipment came in at 2.3tonne, so I'm guessing it was held in a bonded warehouse until customs were on site to witness the unloading)

Even prior to this, if customs suspected something had been underdeclared, they could apply market value to the goods. You can try arguing, but if a quick google search shows the goods typically cost £100, and it's only declared as £20, you're going to have a hard time arguing otherwise, unless you can produce a verified commercial invoice saying it only cost you £20.

For smaller sellers, it's going to make selling direct a very big headache.
It's going to benefit any marketplaces that invest in the required processing greatly, as eBay/Amazon/Etsy/Shopify etc will handle it all for you, as most will have already been doing it for sales into Australia. I sell on eBay, and any sales into Australia, eBay already add the required tax to the sale, and immediately deduct it from my account, without me having to do anymore than I would for any other order.

 
Posted : 22/01/2021 10:54 pm
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I hate brexit but most of the complaint aren’t due to brexit.

But, it is. This wouldn’t apply to the 27+ countries that we trade most with, at all. We already had the VAT rules sorted and stable within the EU… if it wasn’t for Brexit this VAT change would only effect imports from distant countries.

 
Posted : 22/01/2021 11:04 pm
 mc
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But, it is. This wouldn’t apply to the 27+ countries that we trade most with, at all. We already had the VAT rules sorted and stable within the EU… if it wasn’t for Brexit this VAT change would only effect imports from distant countries.

Erm..as of the 1st July, it's going to apply within Europe as well...

 
Posted : 22/01/2021 11:12 pm
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You mean “into” the EU.

Selling between EU countries remain unchanged.

If we were still an EU country, we’d be buying/selling with all of them the same as before new year, and still would be post the extended OSS changes due later this year.

 
Posted : 22/01/2021 11:15 pm
 mc
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Nope.
Within the EU.

Essentially, anybody within the EU will have to pay VAT (or the equivalent) at the rate of their own country, not the rate of where they're buying the goods.

As I said in a previous post, it's essentially going to be the same as digital goods, so no more buying something in Ireland/Luxemburg with their minimal VAT and not at the higher VAT rate of your own country.

 
Posted : 22/01/2021 11:19 pm
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It will still operate much as MOSS though, paying in your home country, rather than registering and paying to another country.

 
Posted : 22/01/2021 11:30 pm
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Topic starter
 

That's interesting MC ..(re a similar scheme being applied to each separate country within the EU ). You'd think that all the software/ systems would have been sorted by now and adding in the UK would simply be a little extra work. Although I'm not pleased re the extra charges it's the handling charge that I can't swallow particularly on small purchases. I remember buying 2 small bottles of vitamin type product from the states for something around £18 which was a good saving on the £35 in this country. On arrival all the extra charges were added on and it ended costing more with the courier stinging me for an extra £15 just for handling.On other occasions to be fair there's been no extra charges as they seemed to have slipped through. My situation involves peanuts ( as that's all I have) but I see with the Covid situation on top affecting couriers /transport there's a lot of unhappy buyers and sellers everywhere.

 
Posted : 23/01/2021 12:33 pm
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It’ll be one scheme, multiple rates. For intra-EU trade, you’ll continue to pay your VAT locally, but declare who for and at what rate. For third countries, you can pay to one EU country, and declare to them who for and at what rate. So, if you are a UK company you will pay VAT to HRMC and to the revenue collectors of one EU country… rather than just to HRMC. Easy enough for the big general retail companies… a headache for a nation of shop keepers relying on selling beyond the British borders to achieve the sale volumes required for their specialisation to work.

 
Posted : 23/01/2021 12:42 pm
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Anyone else brought a bike from Propain and received an update on their order? I brought a Propain Spindrift mullet in October 2020.... still waiting to receive it, and now they are saying I am liable for an additional 14% Import Duty + 20% VAT, and looking at DHL they will now charge an additional 2.5% on the import duty as well!

Seems insane how Propain are saying the bikes are liable to an additional 34%, yet Canyon have all duty and import taxes included? Putting this on top of a £5.5k bike just isn't affordable, nor value for money!

Any advice would be great.

 
Posted : 02/02/2021 8:00 pm
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Walk away

 
Posted : 02/02/2021 8:10 pm
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Wouldn't that mean you're paying VAT twice, EU and UK?

 
Posted : 02/02/2021 8:34 pm