Post Brexit VAT on goods from an EU country

[TonyRPH]

I apologise if this has been covered already - I did search but didn't come up with anything I understood.

If I buy goods (under £135) from an EU country, they will obviously charge VAT but no duties are to be paid.

What I'm not clear on is this;

Do they collect the VAT directly, or is it left to the courier / post office to collect the VAT?

Because the latter doesn't sound right to me, however someone I'm talking claims this to be the case.

I'm aware that couriers can be tasked with collecting import duties when the goods are over the £135 limit.

Would someone kindly explain in simple terms how the system should work? (I admit to not being the brightest with VAT / finance etc.)

What about if you are buying goods from a non business seller in an EU country? Should said seller still charge VAT?

Do we pay VAT on second hand goods in the UK - e.g. if Joe buys something from Fred - as far as I know VAT isn't charged?

Please help this financially challenged bod - thank you!

[loafer123]

Unless the seller is sending Delivery Duty Paid, you will pay Import VAT on the price, but not duty if it is under £135.

Import VAT is not the same as VAT, and all sales, whether by a company or an individual, pay it.

The courier can collect the Import VAT from you, and will then provide it to HMRC. They will also charge a fee for this.

I believe that Import VAT is also payable on second hand goods.

[TonyRPH]

Thanks for this.

So we have a new term now? "Import VAT"

It just sounds like another form of tax! Also sounds distinctly unfair charging 'VAT' on used goods.

[PF62]

TonyRPH said:

Thanks for this.

So we have a new term now? "Import VAT"

It just sounds like another form of tax! Also sounds distinctly unfair charging 'VAT' on used goods.

Import VAT is effectively VAT, just for collection / legislation it is a 'duty of customs' - it makes no difference to an individual paying it, just a slightly different process if you are a business.

Goods bought by individuals from businesses overseas and shipped to the UK -

- If it costs less than £135 then the overseas business must register for VAT in the UK and charge UK VAT, unless they are selling through a marketplace like Amazon or eBay when the marketplace has the responsibility to charge the VAT.

- If it costs more than £135 then the overseas business doesn't charge VAT but the individual is liable to pay VAT, any customs duty, and a handling fee to the courier for dealing with it. You can end up paying customs duty on stuff from Europe because of the rules of origin - but likely you won't know until the courier turns up and tells you to pay £x or you don't get your parcel.

Make sure the overseas retailer is being honest - buy one widget and pay them £60 and the retailer has to account for £10 VAT within that price. Buy three widgets and the retailer shouldn't charge you £180 but only £150 as you are now liable to pay the £30 VAT (and the customs duty and the handling fee).

As for VAT on second-hand goods - that is because the rules for the second-hand margin scheme which only accounts for the VAT on the profit worked cross-border when the UK was part of the EU, but as it now isn't. Another Brexit bonus.

[TonyRPH]

PF62 said:

<stuff>

Thanks for this.

[CAPP0]

Useful thread, I just came looking for similar information!

My situation is slightly different - I (a private individual) want to buy something from a private individual in Estonia. It was something advertised on another forum elsewhere. He's offered me a price (£150) plus shipping but says he doesn't know how the taxes thing works - and neither do I!

Perhaps I need to "agree" a price under £135 with him? But in any case, what happens next and what will it cost me in taxes etc? It always irks me when the tax is minimal but the courier lump on another £20 or so for admin.

[anonymous-user]

Just done this from France on an item which cost 330Euro. Seller sent via DPD who charged me 0% Duty, 20% VAT and £5(+VAT) admin fee, meaning my 330Euro purchase attracted a £61.83 surcharge, thanks Boris!

Edited by anonymous-user on Wednesday 10th February 10:36

[PF62]

CAPP0 said:

Useful thread, I just came looking for similar information!

My situation is slightly different - I (a private individual) want to buy something from a private individual in Estonia. It was something advertised on another forum elsewhere. He's offered me a price (£150) plus shipping but says he doesn't know how the taxes thing works - and neither do I!

Perhaps I need to "agree" a price under £135 with him? But in any case, what happens next and what will it cost me in taxes etc? It always irks me when the tax is minimal but the courier lump on another £20 or so for admin.

They will need to complete a customs declaration form to the package which will show the value and as it is commercial (yes private individual, but you paid for them) then you will need to pay the VAT, plus any Customs Duty, plus a handling fee when it is delivered.

Sure the person posting can put a false amount on the form, but then is their insurance valid if it gets lost, it might get picked for an inspection, etc. Your (their) choice, your (their) risk.

MercScot said:

Just done this from France on an item which cost 330Euro. Seller sent via DPD who charged me 0% Duty, 20% VAT and £5(+VAT) admin fee, meaning my 330Euro purchase attracted a £61.83 surcharge, thanks Boris!

If bought from a business in France all it has cost you is the £6 admin fee, assuming the business has been honest (and competent).

The seller hasn't had to account for French VAT which is 20% the same as the UK, which they would have had to have done before 1st January, so should have charged you an ex-VAT price not an inc-VAT price.