VAT and handling fees on goods from EU countries?
Discussion
What's going to be happening with VAT, duty and courier handling fees on items ordered from EU countries from January 1st?
I'm thinking of consumer goods bought from EU businesses and private sellers via eBay or business websites, things like car parts and hobby items, rather than B2B goods.
Will it be like buying from the USA, China and Japan, where in theory VAT and duty are payable, along with handling fees, but it's pot luck if they get picked up by customs?
Parcels from China and HK rarely get caught, but ones from the USA always seem to, presumably because China/HK sellers undervalue or mark as "gift", while USA sellers play by the rules.
Be a bit unfair if consumers end up paying VAT at the German or French rate, and again at the UK rate, with handling fees on top.
Good for UK businesses, as it'll price EU sellers out of the market once consumers catch on, but it will severely limit consumer choice as a lot of specialist stuff isn't sold here.
I'm thinking of consumer goods bought from EU businesses and private sellers via eBay or business websites, things like car parts and hobby items, rather than B2B goods.
Will it be like buying from the USA, China and Japan, where in theory VAT and duty are payable, along with handling fees, but it's pot luck if they get picked up by customs?
Parcels from China and HK rarely get caught, but ones from the USA always seem to, presumably because China/HK sellers undervalue or mark as "gift", while USA sellers play by the rules.
Be a bit unfair if consumers end up paying VAT at the German or French rate, and again at the UK rate, with handling fees on top.
Good for UK businesses, as it'll price EU sellers out of the market once consumers catch on, but it will severely limit consumer choice as a lot of specialist stuff isn't sold here.
I think its very hit and miss - Ive ordered quite a bit from the US / Canada and not had them flagged and charged and everything I seem to order from China / HK does end up getting additional charges - go figure!
I expect over time this is what will happen with EU products, probably way too soon for it to start though - I would expect probably towards the end of '21
I expect over time this is what will happen with EU products, probably way too soon for it to start though - I would expect probably towards the end of '21
It isn't hit and miss as you describe, it's totally dependent on what trade deals we have with these countries.
Also, what the item is as they can all have different levels of import duty applied. Tariff Codes – such as Harmonised System (HS) or Commodity Codes is what they are and they are a total nightmare!
In the US they can buy from us up to X amount (IIRC it's somewhere around £1500) and they don't pay any duty.
It doesn't work the other way around, we pay duty on every penny spent there.
Buying from China and the limit for zero duty is £135.
Quite what we'll pay on goods from mainland Europe I don't know, it's all a bit unknown at the moment and dependent on the trade deals.
This is what the Brexit haters have not realised, there is a chance now to get cheaper goods. Yes it's illegal, but the chance is there. As from 1st Jan you could go to Europe, buy a watch, put it on your wrist and come home without declaring it thus saving a tidy sum.
There is also the possibility of your foreign friend or vendor marking down the value of goods to save too.
Don't try the old 'It's a gift' trick, they aren't stupid.
There is of course risk involved, one is that the items go missing, you can only claim on insurance what you told the carrier it was worth. So if they lose your £5k, (but £50 on the forms) Rolex watch you've just lost £5k.
Also, what the item is as they can all have different levels of import duty applied. Tariff Codes – such as Harmonised System (HS) or Commodity Codes is what they are and they are a total nightmare!
In the US they can buy from us up to X amount (IIRC it's somewhere around £1500) and they don't pay any duty.
It doesn't work the other way around, we pay duty on every penny spent there.
Buying from China and the limit for zero duty is £135.
Quite what we'll pay on goods from mainland Europe I don't know, it's all a bit unknown at the moment and dependent on the trade deals.
This is what the Brexit haters have not realised, there is a chance now to get cheaper goods. Yes it's illegal, but the chance is there. As from 1st Jan you could go to Europe, buy a watch, put it on your wrist and come home without declaring it thus saving a tidy sum.
There is also the possibility of your foreign friend or vendor marking down the value of goods to save too.
Don't try the old 'It's a gift' trick, they aren't stupid.
There is of course risk involved, one is that the items go missing, you can only claim on insurance what you told the carrier it was worth. So if they lose your £5k, (but £50 on the forms) Rolex watch you've just lost £5k.
Edited by Evoluzione on Tuesday 29th December 13:48
I had no idea that goods from China up to £135 were free of duty. That explains why I've never had to pay.
Getting goods from EU countries cheaper does rely on buying them VAT-free in the first place. Probably fine if you buy in person from a big store that's used to selling things to non-EU tourists, but could be a challenge buying mail order from a small business.
Getting goods from EU countries cheaper does rely on buying them VAT-free in the first place. Probably fine if you buy in person from a big store that's used to selling things to non-EU tourists, but could be a challenge buying mail order from a small business.
Evoluzione said:
Quite what we'll pay on goods from mainland Europe I don't know, it's all a bit unknown at the moment and dependent on the trade deals.
This is what the Brexit haters have not realised, there is a chance now to get cheaper goods. Yes it's illegal, but the chance is there. As from 1st Jan you could go to Europe, buy a watch, put it on your wrist and come home without declaring it thus saving a tidy sum.
There is also the possibility of your foreign friend or vendor marking down the value of goods to save too.
Don't try the old 'It's a gift' trick, they aren't stupid.
There is of course risk involved, one is that the items go missing, you can only claim on insurance what you told the carrier it was worth. So if they lose your £5k, (but £50 on the forms) Rolex watch you've just lost £5k.
Saving a tidy sum on the watch which would cost the same before Brexit as after? The only sum you are saving is import duties in the new world? This is what the Brexit haters have not realised, there is a chance now to get cheaper goods. Yes it's illegal, but the chance is there. As from 1st Jan you could go to Europe, buy a watch, put it on your wrist and come home without declaring it thus saving a tidy sum.
There is also the possibility of your foreign friend or vendor marking down the value of goods to save too.
Don't try the old 'It's a gift' trick, they aren't stupid.
There is of course risk involved, one is that the items go missing, you can only claim on insurance what you told the carrier it was worth. So if they lose your £5k, (but £50 on the forms) Rolex watch you've just lost £5k.
Reading the article that just popped up on my phone - duties are due on gifts at a much lower level than on products (39 pounds vs 160 pounds IIRC).
The rules are here: https://www.gov.uk/government/publications/notice-...
Will be interesting to see if sun £135 items from the likes of Amazon.de can be had VAT free as you currently get charged the German rate. Higher value items probably will become too much hassle and the Royal Mail handling fee also gets put on top which can make a slight saving no longer worthwhile. With a bit of luck more countries will get on the list for prepaying vat/duty so you can buy from the big outfits there as as it is prepaid it doesn’t get held up in customs or attract further handling fees.
Might this be an opportunity for companies that used to dodge VAT and sell CDs from Jersey to setup shop at Calais?
Will be interesting to see if sun £135 items from the likes of Amazon.de can be had VAT free as you currently get charged the German rate. Higher value items probably will become too much hassle and the Royal Mail handling fee also gets put on top which can make a slight saving no longer worthwhile. With a bit of luck more countries will get on the list for prepaying vat/duty so you can buy from the big outfits there as as it is prepaid it doesn’t get held up in customs or attract further handling fees.
Might this be an opportunity for companies that used to dodge VAT and sell CDs from Jersey to setup shop at Calais?
Puggit said:
Evoluzione said:
Quite what we'll pay on goods from mainland Europe I don't know, it's all a bit unknown at the moment and dependent on the trade deals.
This is what the Brexit haters have not realised, there is a chance now to get cheaper goods. Yes it's illegal, but the chance is there. As from 1st Jan you could go to Europe, buy a watch, put it on your wrist and come home without declaring it thus saving a tidy sum.
There is also the possibility of your foreign friend or vendor marking down the value of goods to save too.
Don't try the old 'It's a gift' trick, they aren't stupid.
There is of course risk involved, one is that the items go missing, you can only claim on insurance what you told the carrier it was worth. So if they lose your £5k, (but £50 on the forms) Rolex watch you've just lost £5k.
Saving a tidy sum on the watch which would cost the same before Brexit as after? The only sum you are saving is import duties in the new world? This is what the Brexit haters have not realised, there is a chance now to get cheaper goods. Yes it's illegal, but the chance is there. As from 1st Jan you could go to Europe, buy a watch, put it on your wrist and come home without declaring it thus saving a tidy sum.
There is also the possibility of your foreign friend or vendor marking down the value of goods to save too.
Don't try the old 'It's a gift' trick, they aren't stupid.
There is of course risk involved, one is that the items go missing, you can only claim on insurance what you told the carrier it was worth. So if they lose your £5k, (but £50 on the forms) Rolex watch you've just lost £5k.
Reading the article that just popped up on my phone - duties are due on gifts at a much lower level than on products (39 pounds vs 160 pounds IIRC).
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