How Does VAT Work On Imports Now?
Discussion
Putting this here, as it's not really a business question, I'm just asking as a general consumer. So I guess it's politics and economics as much as anything.
Previously, when I've bought things from abroad, if there's been anything I need to pay tax-wise, I'd have to pay the post office or whoever to cover it, along with their administration charge. Then they'd release it to me.
Now, as I understand it, below £135, the seller is meant to handle this by registering for UK VAT and doing the relevant paperwork etc. I pay them for the VAT, and it's all sorted.
If the seller is willing to do this, or are using a third party website that facilitates it (like Ebay for example), all well and good.
If they're not, is there no longer any mechanism for them to ship these kind of lower value goods to me anyway, and I be the one to sort out the VAT?
There seem to be a few companies who have said they're not shipping to the UK because they don't want the extra hassle, which I can understand, but it'll be frustrating if that prevents me being able to order things. I'd be fine with paying whatever is due when it gets here, as I have done before.
Can I?
If I order something that's zero rated for VAT, like a book, does all this rigmarole still apply, or can it just be sent as-is?
Previously, when I've bought things from abroad, if there's been anything I need to pay tax-wise, I'd have to pay the post office or whoever to cover it, along with their administration charge. Then they'd release it to me.
Now, as I understand it, below £135, the seller is meant to handle this by registering for UK VAT and doing the relevant paperwork etc. I pay them for the VAT, and it's all sorted.
If the seller is willing to do this, or are using a third party website that facilitates it (like Ebay for example), all well and good.
If they're not, is there no longer any mechanism for them to ship these kind of lower value goods to me anyway, and I be the one to sort out the VAT?
There seem to be a few companies who have said they're not shipping to the UK because they don't want the extra hassle, which I can understand, but it'll be frustrating if that prevents me being able to order things. I'd be fine with paying whatever is due when it gets here, as I have done before.
Can I?
If I order something that's zero rated for VAT, like a book, does all this rigmarole still apply, or can it just be sent as-is?
The VAT situation is very complicated - whether exporting or importing. Some is not very clear at all and some UK businesses are not fulfilling any orders from EU based customers until they know what the situation is.
As I'm a model builder I can tell you that both Airfix and Hannants (a large mail order retail outlet in Lowestoft) have both ceased sending packages to EU countries for the moment.
At the moment, VAT returns that are completed by UK businesses are completely incorrect for the new regime. HMRC has not redesigned the boxes to cater for the new definitions. In fact, HMRC never amended the forms after the last major changes so they've been out of date for over 10 years.
As I'm a model builder I can tell you that both Airfix and Hannants (a large mail order retail outlet in Lowestoft) have both ceased sending packages to EU countries for the moment.
At the moment, VAT returns that are completed by UK businesses are completely incorrect for the new regime. HMRC has not redesigned the boxes to cater for the new definitions. In fact, HMRC never amended the forms after the last major changes so they've been out of date for over 10 years.
I watch this with interest .
I'm a Scot living in Ireland . I recently got a vat refund from a UK seller on a £60 purchase. I believe that when it lands here I will be liable for vat and import duties . I seen an example of a purchase of £210 where the import duty was £ 61 on top of the vat .
I'm waiting to see how much I'll have to pay and how long it will take to clear as the amount of effort to calculate every charge by the Irish Post Office will be enormous.
I was intending to ship a pallet containing a complete manual gearbox conversion from S Wales to SW Ireland in January that a friend has assembled for me over a couple of years , I paid for this in parts that I sent him for his restoration. I will now have to pay VAT on this and accept an import duty cost that the Revenue Comissioners decide is worthy of the value.
I do hope that the UK applies a similar charge as this is the only way that the UK and EU administrations will be forced to cancel out a charge that will discourage business .
In all these years that I have purchased items from China via Ebay I have never been charged import duty but they seem to have decided to apply it to UK from day one.
A nice little earner for the Revenue over here........
I'm a Scot living in Ireland . I recently got a vat refund from a UK seller on a £60 purchase. I believe that when it lands here I will be liable for vat and import duties . I seen an example of a purchase of £210 where the import duty was £ 61 on top of the vat .
I'm waiting to see how much I'll have to pay and how long it will take to clear as the amount of effort to calculate every charge by the Irish Post Office will be enormous.
I was intending to ship a pallet containing a complete manual gearbox conversion from S Wales to SW Ireland in January that a friend has assembled for me over a couple of years , I paid for this in parts that I sent him for his restoration. I will now have to pay VAT on this and accept an import duty cost that the Revenue Comissioners decide is worthy of the value.
I do hope that the UK applies a similar charge as this is the only way that the UK and EU administrations will be forced to cancel out a charge that will discourage business .
In all these years that I have purchased items from China via Ebay I have never been charged import duty but they seem to have decided to apply it to UK from day one.
A nice little earner for the Revenue over here........
steely dan said:
In all these years that I have purchased items from China via Ebay I have never been charged import duty but they seem to have decided to apply it to UK from day one.
A nice little earner for the Revenue over here........
You've had a delivery from China in the last 4 days?A nice little earner for the Revenue over here........
Evoluzione said:
steely dan said:
In all these years that I have purchased items from China via Ebay I have never been charged import duty but they seem to have decided to apply it to UK from day one.
A nice little earner for the Revenue over here........
You've had a delivery from China in the last 4 days?A nice little earner for the Revenue over here........
I'm still reading up on the new rules but they seem to be rather vague when it comes to used items from a private sale .
My understanding is that if it's OVER £135 then the EU seller doesn't charge you VAT (UK or European) and the VAT is collected at the "border" by royal mail or whoever (+handling fee). A bit like how imports from places like China or the US have always worked, over about £20. This is also what most other countries do.
But
If it's UNDER £135 then according to the website the seller will register (yeah right) and charge you UK vat, and then pay it to HMRC.
Very nice in theory, in reality it will fall apart as most sellers won't want the hassle.
What the site doesn't say, is what happens if the seller sends something worth, say, £100 and declares it as such, but isn't registered.
Does it get waved through? Sent back? Or is the VAT collected from the buyer, like it always has done in the past for everything over £20.
Many countries have a different limit, like Jersey which charges GST on anything over £135, and doesn't bother with anything below.
You can pay it in advance of your parcel arriving at the border. They are pretty used to dealing with imports from the EU, and have always been outside of the EU.
But
If it's UNDER £135 then according to the website the seller will register (yeah right) and charge you UK vat, and then pay it to HMRC.
Very nice in theory, in reality it will fall apart as most sellers won't want the hassle.
What the site doesn't say, is what happens if the seller sends something worth, say, £100 and declares it as such, but isn't registered.
Does it get waved through? Sent back? Or is the VAT collected from the buyer, like it always has done in the past for everything over £20.
Many countries have a different limit, like Jersey which charges GST on anything over £135, and doesn't bother with anything below.
You can pay it in advance of your parcel arriving at the border. They are pretty used to dealing with imports from the EU, and have always been outside of the EU.
steely dan said:
Evoluzione said:
steely dan said:
In all these years that I have purchased items from China via Ebay I have never been charged import duty but they seem to have decided to apply it to UK from day one.
A nice little earner for the Revenue over here........
You've had a delivery from China in the last 4 days?A nice little earner for the Revenue over here........
I'm still reading up on the new rules but they seem to be rather vague when it comes to used items from a private sale .
That's all we need in a factual debate.
There was import duty on Chinese goods all the time, it's just that our trade deal with them meant it was over a certain amount. So if you bought something labelled as cheap tat it was charged as such.
Evoluzione said:
steely dan said:
Evoluzione said:
steely dan said:
In all these years that I have purchased items from China via Ebay I have never been charged import duty but they seem to have decided to apply it to UK from day one.
A nice little earner for the Revenue over here........
You've had a delivery from China in the last 4 days?A nice little earner for the Revenue over here........
I'm still reading up on the new rules but they seem to be rather vague when it comes to used items from a private sale .
That's all we need in a factual debate.
There was import duty on Chinese goods all the time, it's just that our trade deal with them meant it was over a certain amount. So if you bought something labelled as cheap tat it was charged as such.
Plymo , thanks for your contribution . early days and as I , and others over here , are on a learning curve we 'll watch and learn as we go .
Tax in general is overcomplicated, it could be made simpler but it employs millions of accountants & legal types in exciting jobs, thus it suits them to keep this way.
The EU compounded this by employing hundreds of thousands of bureaucrats (experts) that make stuff up to justify their existence.
Nothing is easy, making up a non-job to justify ripping off the average person seems to be a trend of the century.
The EU compounded this by employing hundreds of thousands of bureaucrats (experts) that make stuff up to justify their existence.
Nothing is easy, making up a non-job to justify ripping off the average person seems to be a trend of the century.
steely dan said:
Evoluzione said:
steely dan said:
In all these years that I have purchased items from China via Ebay I have never been charged import duty but they seem to have decided to apply it to UK from day one.
A nice little earner for the Revenue over here........
You've had a delivery from China in the last 4 days?A nice little earner for the Revenue over here........
I'm still reading up on the new rules but they seem to be rather vague when it comes to used items from a private sale .
Lots of potential outcomes...I think these are all of them under the new system;
If you buy it on an Online Marketplace, they have to sort the VAT under the new rules;
If you buy direct, it might be Delivered Duty Paid, or the vendor may be registered for VAT and act as the importer of record, clearing it through customs...in either case, it should arrive as normal;
If the vendor is winging it, you may have to pay VAT and duty to release it, like you did from the Post Office.
If you buy it on an Online Marketplace, they have to sort the VAT under the new rules;
If you buy direct, it might be Delivered Duty Paid, or the vendor may be registered for VAT and act as the importer of record, clearing it through customs...in either case, it should arrive as normal;
If the vendor is winging it, you may have to pay VAT and duty to release it, like you did from the Post Office.
KrissKross said:
Tax in general is overcomplicated, it could be made simpler but it employs millions of accountants & legal types in exciting jobs, thus it suits them to keep this way.
The EU compounded this by employing hundreds of thousands of bureaucrats (experts) that make stuff up to justify their existence.
Nothing is easy, making up a non-job to justify ripping off the average person seems to be a trend of the century.
I hear that rocket science isn’t that hard but the scientists in white costs aren’t letting on as they are onto a good thing...The EU compounded this by employing hundreds of thousands of bureaucrats (experts) that make stuff up to justify their existence.
Nothing is easy, making up a non-job to justify ripping off the average person seems to be a trend of the century.
Back in the real world...tax laws are made by governments, not accountants and legal types so not sure why you are blaming the latter for complexity. Secondly, under the 13th directive the EU attempted to harmonise VAT rules across the EU so as to reduce differences between EU countries so as to make VAT easier (to encourage the free flow
of goods and services). Don’t let facts get in the way of your rant though.
It seems there are now a few companies (possibly just temporary) have decided not to sell/delivery to the UK because of the new VAT rules. They are stating this is to do with cost and additional cost/bureaucracy. Looks like all the big delivery firms like Fedex and TNT have added costs to UK deliveries too. It may be posturing by them or maybe they just cant be arsed selling to the UK any more as its too much hassle. Guess we will find out over the next few months. Its unfortunately stopped me buying a couple of things I wanted.
Part of the problem is that the change has come at the same time as a dearth of flights, which means courier/postal costs have massively increased.
For example, I can only get a packet (large letter sized) delivered to Germany for €12.50 DDP now.
Add to that the fact that no one knows how you can actually pay German VAT on import sensibly (even the Germans don’t know) and it is probably worth just waiting for 6 months until the new regime is in place.
At least the U.K. set in place the new regime on the 1st January, and it won’t change again in the medium term.
I ordered some music gear on the first from Germany (thomann.de) for around £240 and its noted when ordering that I'll be liable for VAT which will be paid to the courier, in this case UPS.
Don't order a huge amount of stuff but not sure how it's done, if UPS contact me to pay or if its done by the delivery driver or similar?
Don't order a huge amount of stuff but not sure how it's done, if UPS contact me to pay or if its done by the delivery driver or similar?
No idea what is going on with the vat etc but will confirm some companies are not selling to the U.K. because if it.
I have been trying to get hold of some stuff from Finland and the manufacturer won’t ship here anymore as they said they the background work they have to do with the tax isn’t worth the money they would make from my order.
I have been trying to get hold of some stuff from Finland and the manufacturer won’t ship here anymore as they said they the background work they have to do with the tax isn’t worth the money they would make from my order.
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff