VAT on goods from Sweden
Discussion
Eric Mc said:
Thanks for the clarification. I wonder how all this nitty gritty VAT legislation will pan out after Brexit.
Here in Sweden, at present we are currently assuming we would treat the UK the same as non-eu countries, so no VAT/MOMs unless some new treaty comes into force as a result of the negotiations. Eric Mc said:
I assumed that EU member states can't "assume" anything about EU based regulations. The VAT treatment between non-EU states and EU countries is decided in Brussels rather than by individual countries.
Indeed and that policy is non-eu countries (which the UK is set to become) will be zero VAT as it stands today, of course, that might change. Canute said:
Eric Mc said:
Thanks for the clarification. I wonder how all this nitty gritty VAT legislation will pan out after Brexit.
Here in Sweden, at present we are currently assuming we would treat the UK the same as non-eu countries, so no VAT/MOMs unless some new treaty comes into force as a result of the negotiations. Sure, ship to mainland GB and it will be a non-eu export and import into the UK.
However ship to NI and as the withdrawal agreement has NI continuing to follow EU VAT rules for goods (but not services) that will still be an EU intra-community movement for VAT (but not for customs as NI will be in the UK customs territory and not the EU customs territory). Except if the goods are not remaining in NI, but are going on to mainland GB, when it isn't.
What could possibly go wrong.
Eric Mc said:
A set of transactions set up as part of a tax avoidance move is not illegal. That does not mean it will be allowed by HMRC if they pick up on it.
In other words, you won't go to jail, but you will be made pay back the tax you thought you had saved plus interest plus penalties.
But easy to slip beyond 'avoidance' and into something which will get you jail time, as these people found out - https://www.theguardian.com/uk-news/2016/jul/01/fi...In other words, you won't go to jail, but you will be made pay back the tax you thought you had saved plus interest plus penalties.
PF62 said:
Eric Mc said:
A set of transactions set up as part of a tax avoidance move is not illegal. That does not mean it will be allowed by HMRC if they pick up on it.
In other words, you won't go to jail, but you will be made pay back the tax you thought you had saved plus interest plus penalties.
But easy to slip beyond 'avoidance' and into something which will get you jail time, as these people found out - https://www.theguardian.com/uk-news/2016/jul/01/fi...In other words, you won't go to jail, but you will be made pay back the tax you thought you had saved plus interest plus penalties.
Eric Mc said:
PF62 said:
Eric Mc said:
A set of transactions set up as part of a tax avoidance move is not illegal. That does not mean it will be allowed by HMRC if they pick up on it.
In other words, you won't go to jail, but you will be made pay back the tax you thought you had saved plus interest plus penalties.
But easy to slip beyond 'avoidance' and into something which will get you jail time, as these people found out - https://www.theguardian.com/uk-news/2016/jul/01/fi...In other words, you won't go to jail, but you will be made pay back the tax you thought you had saved plus interest plus penalties.
https://www.ftadviser.com/2016/07/04/ifa-industry/...
https://www.ftadviser.com/2015/12/21/ifa-industry/...
Sorry for the thread resurrection but, now that Brexit is behind us, I just wanted to check on how VAT works when buying an item in the EU and improving it into the UK. For context I'm a private individual and not a business. The item I'm looking at buying is SEK 11000 (~£875) including Swedish VAT. I know that I need to pay VAT somewhere and am not looking to avoid it, merely trying to ensure that I don't end up paying it twice (once each in Sweden and the UK). Do I pay the Swedish VAT and then somehow (how?) claim it back, then paying the UK VAT at the point of import or is there a way for the Swedish supplier to exempt it from VAT as an export? Any ideas and real-life experiences are most welcome!
78Pace said:
Sorry for the thread resurrection but, now that Brexit is behind us, I just wanted to check on how VAT works when buying an item in the EU and improving it into the UK. For context I'm a private individual and not a business. The item I'm looking at buying is SEK 11000 (~£875) including Swedish VAT. I know that I need to pay VAT somewhere and am not looking to avoid it, merely trying to ensure that I don't end up paying it twice (once each in Sweden and the UK). Do I pay the Swedish VAT and then somehow (how?) claim it back, then paying the UK VAT at the point of import or is there a way for the Swedish supplier to exempt it from VAT as an export? Any ideas and real-life experiences are most welcome!
The supplier should be selling to you excluding VAT as its an export for them, then you will be hit with 20% VAT + Import fees (varies depending on the product) + a handling fee from the courier (again this varies but I the handling fees are about £10-20 in most cases).For example importing a bicycle from the EU now you are hit with 20% VAT + 14% import fee of the declared price.
Thanks for your replies, which is in line with what I was expecting. The supplier is trying to charge me the Swedish tax and then it'll be my job to claim it back (which I imagine will be time consuming and involve hoops and jumping). I know in the grand scheme of things it's not a huge amount, but I'm not keen on having to pay more than I have to. As it turns out the UK agent has finally got back to me now and has a newer version of what I'm after....so that will probably be the simplest option all round.
78Pace said:
The supplier is trying to charge me the Swedish tax and then it'll be my job to claim it back (which I imagine will be time consuming and involve hoops and jumping).
It won’t involve hoop jumping as the Swedish tax authority will simply tell you “no”.This is a classic case of the supplier not having a clue, but probably not caring as post-Brexit UK only makes up a tiny proportion of their trade and they can happily carry on supplying the rest of the EU as they always did. And if UK purchasers end up paying the Swedish VAT as well as UK VAT, well hey ho, just one of those benefits of Brexit.
Gassing Station | Business | Top of Page | What's New | My Stuff