Another of those 'Will I pay tax?' questions

[Simpo Two]

Considering buying a tool from Germany for about £200. The selling company thinks that the agreement between UK and EU means no further taxes will be payable on import - is he right? Ta!

[f0xy]

I just paid £191 (VAT and 'handling fee') on a £927 purchase from a seller in Lithuania. Shipped via DHL. There is no duty... but should be VAT... sure its the same on anything over £135 value now

[Simpo Two]

f0xy said:

I just paid £191 (VAT and 'handling fee') on a £927 purchase from a seller in Lithuania. Shipped via DHL. There is no duty... but should be VAT... sure its the same on anything over £135 value now

Thanks - so if the sale price includes VAT that shoud be it?

[f0xy]

Simpo Two said:

Thanks - so if the sale price includes VAT that shoud be it?

This is what I couldn't find out at the time... I needed the parts so had to order and just see what happened.

Obviously in the past you pay your VAT in the country of origin (EU) and it just landed in the UK no issue - was there an EU VAT agreement then?

That would say to me, that now we should purchase ex VAT in the country of origin (EU) and our VAT is added in the UK as it arrives? But I could not find any clarification a couple of weeks ago. I'm not even sure the seller in the EU knew.

In my case, with the terrible EUR rate, it would have been cheaper overall for me to order from the USA, pay in USD and then have duty and VAT as it landed, hindsight!

[Simpo Two]

I've just asked the seller (VAT-registered) if his sale price includes VAT. If it does then I'm not paying it twice!

[sgrimshaw]

Simpo Two said:

I've just asked the seller (VAT-registered) if his sale price includes VAT. If it does then I'm not paying it twice!

The seller is exporting from Germany to a country outside of the UK, he should not be charging you German VAT as exports are zero rated.

You will be liable to pay VAT on import into the UK.

[Simpo Two]

sgrimshaw said:

The seller is exporting from Germany to a country outside of the UK, he should not be charging you German VAT as exports are zero rated. You will be liable to pay VAT on import into the UK.

Sounds fair. Happy to pay VAT once, wasn't sure about import duty though.

The tool is for sale on eBay at 209 Euros + 40 Euros shipping. The seller says:

'The price includes the transport to Great Britain, you would have to ask your customs about the customs duties, but I believe that since Brexit there has been a special agreement for the duty-free import of goods from the EC'.

I asked: 'Thanks for the reply. So does your sale price of EUR 209.00 include VAT?'

He's then foxed me by saying: 'Price without tax for delivery out of German EURO 179,00. Shipping cost EURO 40,00. Totally without tax EURO 219,00'...

[Countdown]

Simpo Two said:

Sounds fair. Happy to pay VAT once, wasn't sure about import duty though.

The tool is for sale on eBay at 209 Euros + 40 Euros shipping. The seller says:

'The price includes the transport to Great Britain, you would have to ask your customs about the customs duties, but I believe that since Brexit there has been a special agreement for the duty-free import of goods from the EC'.

I asked: 'Thanks for the reply. So does your sale price of EUR 209.00 include VAT?'

He's then foxed me by saying: 'Price without tax for delivery out of German EURO 179,00. Shipping cost EURO 40,00. Totally without tax EURO 219,00'...

Seems fairly straightforward to me.

His first price is Eu179 + VAT (for sales within the EU. His second price (for sales outside of the EU) is Eu179. You then pay import VAT, meaning that he hasnt charged you VAT and you've only paid it once.

[sgrimshaw]

Simpo Two said:

Sounds fair. Happy to pay VAT once, wasn't sure about import duty though.

The tool is for sale on eBay at 209 Euros + 40 Euros shipping. The seller says:

'The price includes the transport to Great Britain, you would have to ask your customs about the customs duties, but I believe that since Brexit there has been a special agreement for the duty-free import of goods from the EC'.

I asked: 'Thanks for the reply. So does your sale price of EUR 209.00 include VAT?'

He's then foxed me by saying: 'Price without tax for delivery out of German EURO 179,00. Shipping cost EURO 40,00. Totally without tax EURO 219,00'...

He should know that the final statement is what he should be doing, Goods @ €179, Shipping charge €40 .. no VAT.

The rate of duty applicable depends on the commodity code of the item. it may well be zero % .. you can search for the rate of duty applicable here:

https://www.trade-tariff.service.gov.uk/sections

Also, don't forget to factor in the couriers "handling charge"

Good overview here - apologies for linking to the Guadrian

https://www.theguardian.com/money/2021/jan/21/eu-w...

[Simpo Two]

sgrimshaw said:

He should know that the final statement is what he should be doing, Goods @ €179, Shipping charge €40 .. no VAT.

The rate of duty applicable depends on the commodity code of the item. it may well be zero % .. you can search for the rate of duty applicable here:

https://www.trade-tariff.service.gov.uk/sections

Also, don't forget to factor in the couriers "handling charge"

It's a scroll saw, so as far as I can tell it's 2%: https://www.trade-tariff.service.gov.uk/headings/8...

I'm quite horrified that so much human time has gone into writing such tedious drivel.

Countdown said:

Simpo Two said:

Sounds fair. Happy to pay VAT once, wasn't sure about import duty though.

The tool is for sale on eBay at 209 Euros + 40 Euros shipping. The seller says:

'The price includes the transport to Great Britain, you would have to ask your customs about the customs duties, but I believe that since Brexit there has been a special agreement for the duty-free import of goods from the EC'.

I asked: 'Thanks for the reply. So does your sale price of EUR 209.00 include VAT?'

He's then foxed me by saying: 'Price without tax for delivery out of German EURO 179,00. Shipping cost EURO 40,00. Totally without tax EURO 219,00'...

Seems fairly straightforward to me.

His first price is Eu179 + VAT (for sales within the EU. His second price (for sales outside of the EU) is Eu179. You then pay import VAT, meaning that he hasnt charged you VAT and you've only paid it once.

I couldn't understand why the advert says 209, then 'totally without tax' it's more expensive at 219...

I can't know courier handling fees as I don't know who will be used. What happened to them when we were in the EU?

Probably the easiest way forwards is just to buy the thing and take whatever happens on the chin.

[sgrimshaw]

[quote=Simpo Two]
It's a scroll saw, so as far as I can tell it's 2%: https://www.trade-tariff.service.gov.uk/headings/8...

I'm quite horrified that so much human time has gone into writing such tedious drivel.

[quote=Simpo Two]

Got to keep the Civil Servants in their jobs

AAMOI whats so special about this scroll saw to make it worth importing from Germany?

[Simpo Two]

sgrimshaw said:

AAMOI whats so special about this scroll saw to make it worth importing from Germany?

It simply looked like the best deal when I was looking. It's a Proxxon DSH.

[sgrimshaw]

Simpo Two said:

It simply looked like the best deal when I was looking. It's a Proxxon DSH.

Probably no cheaper in the end than buying in the UK:


https://www.germantools.co.uk/product/proxxon-dsh-...

[IJWS15]

Buy DDP and there will be no tax to pay.

Buy EXW or similar and there will be.

For b to b look up incoterms.

[Simpo Two]

sgrimshaw said:

Probably no cheaper in the end than buying in the UK:

https://www.germantools.co.uk/product/proxxon-dsh-...

Yep, I was starting to think that too!

IJWS15 said:

Buy DDP and there will be no tax to pay.

Buy EXW or similar and there will be.

What is DDP?

[PF62]

Simpo Two said:

What is DDP?

Delivered Duty Paid

[sgrimshaw]

PF62 said:

Delivered Duty Paid

Not the buyer's choice.

It's an option available to the seller.

[Simpo Two]

sgrimshaw said:

Not the buyer's choice.

It's an option available to the seller.

Seems that even if they could pay the tax/es for me, they'd just add it to the price...

Thanks for keeping my brain straight guys

[Piersman2]

Simpo Two said:

sgrimshaw said:

He should know that the final statement is what he should be doing, Goods @ €179, Shipping charge €40 .. no VAT.

The rate of duty applicable depends on the commodity code of the item. it may well be zero % .. you can search for the rate of duty applicable here:

https://www.trade-tariff.service.gov.uk/sections

Also, don't forget to factor in the couriers "handling charge"

It's a scroll saw, so as far as I can tell it's 2%: https://www.trade-tariff.service.gov.uk/headings/8...

I'm quite horrified that so much human time has gone into writing such tedious drivel.

Countdown said:

Simpo Two said:

Sounds fair. Happy to pay VAT once, wasn't sure about import duty though.

The tool is for sale on eBay at 209 Euros + 40 Euros shipping. The seller says:

'The price includes the transport to Great Britain, you would have to ask your customs about the customs duties, but I believe that since Brexit there has been a special agreement for the duty-free import of goods from the EC'.

I asked: 'Thanks for the reply. So does your sale price of EUR 209.00 include VAT?'

He's then foxed me by saying: 'Price without tax for delivery out of German EURO 179,00. Shipping cost EURO 40,00. Totally without tax EURO 219,00'...

Seems fairly straightforward to me.

His first price is Eu179 + VAT (for sales within the EU. His second price (for sales outside of the EU) is Eu179. You then pay import VAT, meaning that he hasnt charged you VAT and you've only paid it once.

I couldn't understand why the advert says 209, then 'totally without tax' it's more expensive at 219...

I can't know courier handling fees as I don't know who will be used. What happened to them when we were in the EU?

Probably the easiest way forwards is just to buy the thing and take whatever happens on the chin.

I'm getting confused by your confusion.

I'm reading that last line to mean "Total price (delivered, without any tax) = Eu209. (179+40).

[Poseidon]

Doesn't answer your question but just had a delivery from our German supplier via DHL, just under 800 euros worth of parts.

No bill for VAT or processing fees. Can't see that it has been sent DDP. Strange...