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I am hoping to order quite a bit from EU sellers and just constructed a short letter to send to some of them re VAT and the extra charges we may incur as a result of Brexit. It may appear silly to some but I am not exactly flush money wise so always try save money whever possible.
I just typed out the following as a first attempt and then questioned whether what I was saying is actually correct.
If anyone has a decent understanding of the issue I describe please feel free to tell me I've got it all wrong and I'd appreciate if you could clarify my mistakes ( if I have misunderstood the situation ).
Thanks in advance and here is my inquiry...
"
Hello from England !
I would like to ask whether you are now able to charge me the UK VAT due before shipping ?
You may or may not know that since the stupid Brexit decision and our leaving the EU we have to pay UK VAT on all orders from the EU apart from a number of exclusions.
Many bigger companies in the EU have signed up and have a system where the UK tax is collected ,on behalf of the UK government , by the EU seller , and it is included in the total charge at checkout .
If you are not signed up to this scheme (which many smaller EU business's are not) then once the order arrives in the UK we may have to pay not only the VAT , but import charges and courier charges on top for collecting the VAT. In this way an order can be very costly indeed.. (perhaps 20 to 30% extra of the original price for the product and shipping. )
You may know all of this already . If you are not part of the new scheme ...is it possible to have the German VAT charge removed from any order ..otherwise we have to pay 2 X local Taxes ( German VAT + UK VAT )
I believe you are not required to charge the German VAT on orders to the UK.
Apologies for all this complication
Many thanks
eh?
what are you buying and from where? some retailers will pay the VAT some not, those that don't won't charge you the local sales tax.
You seem slightly confused with the brexit import tax/import fees. If its bike bits and over £135 simply add 25% and you'll be roughly there.
It's a number of companies and yes various bike bits.
I was under the impression that there was no lower limit re the VAT .
I presume the £135 relates to the import duty lower limit.
I spoke to a couple of EU retailers a while back who knew nothing re this and would charge you their country's VAT as usual .In those cases you would therefore be charged UK VAT as well on receipt ( unless the customs miss it or the product is exempt ) .
Therefore you'd pay 2 X the VAT + the import duty if applicable +the courier admin charge.
I have a sneaking feeling I actually am correct and many people don't actually know the reality but wanted to check ..hence the thread.
OP
Seems a bit overcomplicated to me. Just order it from a company that does it VAT free if you're delivering to UK. Eg gambacicili
Then if it's under 135£ then you're golden
If it's over 135£ then just cross your fingers. And if you're lucky, like I was last week then you're also golden. 911 English for a set of XMC 1501s 😃😉😝🤗
Tax free shopping, hurrah
#BrexitDividend
Over £135, I’ve never been charged EU/German VAT, from big retailers to small boutique companies, though it’s always added if under.
Similarly, I’ve always had to pay VAT correctly, based on the £135 limit, once it arrives here.
The VAT is always listed/removed at checkout, so if it’s there and shouldn’t be, buy from someone else.
FWIW, the retailers aren’t obliged to take the VAT off. Planet X don’t for EU customers, for example.
Under £135 the seller should charge the VAT (to be paid to HMRC by then and shown on the declaration). Over that amount no local VAT is obliged to be taken at the point of sale, instead it will be applied on import.
Import duty and handling fees apply separately.
Just had another little play on gambacicili and they don't charge VAT on sub £135 baskets.
Fill yet boots.
Thanks all but some items I want to buy are only available from single retailers hence no choice.I just want to work out whether the total price is worth it before buying.
The link to the Gov't website has various statements that are in conflict with each other ..for example it goes in to great detail re different charges
and then says "you won't have to pay anything to the delivery / courier company if the order is under £135.
So if VAT is owed and the order is under that figure ..do the courier's collect the charge from you without their admin charge ?
Read it and you 'll see the conflicting statements.
It does get a bit complex and also note it is different if you're buying from a marketplace (eg Amazon, Ebay) or direct from the retailer eg their own website.
If from a marketplace you should be fine, they're all up to date and you won't get charged German (or whatever) VAT. If order total is under £135 then UK VAT will be included and it'll pass straight through customs, if >£135 then VAT won't be included and you'll pay it on import.
If buying direct, the above scheme is the same BUT it's optional for the seller. If they're signed up the process should be the same. If not, they should not charge any VAT and you'll pay it on import regardless of value.
There will probably be some sellers not clued up* and always charging German VAT. You'll have to contact them about this, but keep your email simple and to the point (it's a bit confusing IMO, bearing in mind language barriers).
*or not bothered, or hoping to make a bit extra profit!
Thanks Ossify ..you just confirmed my understanding is pretty much correct (unfortunately). 'Kin Brexit.