Car parts from Europe

Author
Discussion

Skyedriver

Original Poster:

17,880 posts

283 months

Tuesday 26th January 2021
quotequote all
Reading a few posts on various FB car forums about spares purchased from abroad (seem mainly France and Italy) are costing a lot more as UK Customs are adding up to 25% to the value.

Genuine problem and likely to continue? Could this also happen to new or second hand cars?

Limpet

6,318 posts

162 months

Tuesday 26th January 2021
quotequote all
A lot of European businesses have temporarily suspended shipping to UK customers as the post-Brexit VAT rules are such a complete ball-ache. Effectively, EU based sellers shipping directly to UK consumers now have to register and account for the VAT to HMRC. Many are deciding it isn't worth it.

Olivergt

1,337 posts

82 months

Tuesday 26th January 2021
quotequote all
Yes, it will continue as long as the UK is not in the EU, it is Brexit related.

All items arriving from an EU country are subject to any import duty and VAT.

In addition to the the above, the UK government has also put the onus on the Seller to collect the UK VAT and forward it on to the UK, so if an EU company wants to sell to the UK, they have to register with the UK for VAT purposes.

This applied both ways though, so anyone in the EU buying something from the UK will get hit for import duty and VAT.

This has some further information.
https://www.gov.uk/government/publications/changes...

berlintaxi

8,535 posts

174 months

Tuesday 26th January 2021
quotequote all
Skyedriver said:
Genuine problem and likely to continue?
Not a problem for everybody who voted for Brexit, and will continue forever or until we re-join the EU as imports to the UK are now subject to VAT, and duty where applicable, furthermore shipping costs to the UK have gone up massively as freight companies are no longer interested in the ballache of sending trucks to the UK.

SturdyHSV

10,098 posts

168 months

Tuesday 26th January 2021
quotequote all
Yep, it's the new normal.

Most of the car parts I buy come from America so very used to the duty / VAT. Great joy paying VAT on the cost of the shipping as well, that's always a treat.

21st Century Man

40,927 posts

249 months

Tuesday 26th January 2021
quotequote all
The local rate of vat is deducted by the seller for export and the UK vat rate at 20% is applied upon import. EU member States vat rates vary from 17% to 27%. There is no duty. Some carriers are taking the piss with regard to clearance fees. Beats me why some are having no problems whilst others are having loads, but whatever that difference is will be the problem, not Brexit per se.

Vat on privately sold second hand goods is the real pisser imo, as the seller cannot deduct it for export as it's integral to the value.

Olivergt

1,337 posts

82 months

Tuesday 26th January 2021
quotequote all
berlintaxi said:
Skyedriver said:
Genuine problem and likely to continue?
Not a problem for everybody who voted for Brexit, and will continue forever or until we re-join the EU as imports to the UK are now subject to VAT, and duty where applicable, furthermore shipping costs to the UK have gone up massively as freight companies are no longer interested in the ballache of sending trucks to the UK.
I really didn't want to chime in on the Brexit debate as I didn't get a vote as I am resident in Ireland. But I can tell you nobody here will be buying anything from the UK unless it is impossible to get from anywhere else. Anything over a certain value (€120?) is subject to both Import tax (12%) and VAT (21%) which adds 30% to the price.

No to mention a lot of products that simply won't ship from the UK to EU countries going forwards, such as seed potatoes and some other seeds.

Olivergt

1,337 posts

82 months

Tuesday 26th January 2021
quotequote all
21st Century Man said:
The local rate of vat is deducted by the seller for export and the UK vat rate at 20% is applied upon import. EU member States vat rates vary from 17% to 27%. There is no duty. Some carriers are taking the piss with regard to clearance fees. Beats me why some are having no problems whilst others are having loads, but whatever that difference is will be the problem, not Brexit per se.

Vat on privately sold second hand goods is the real pisser imo, as the seller cannot deduct it for export as it's integral to the value.
You are correct, in theory the local VAT should be deducted by the seller for export to the UK. so it is possible over time, that certain businesses will have the systems in place to deal with this, but I wouldn't hold my breath.

The same applies to UK companies shipping to the EU, they should be removing the UK VAT.

VAT on privately sold goods is the price of Brexit, speak to those who voted for it...

Edited by Olivergt on Tuesday 26th January 18:02

Mikee19

591 posts

97 months

Tuesday 26th January 2021
quotequote all
Out of interest, ignoring the other costs of Brexit, will the government be quids in on imports as we don't export a lot?


21st Century Man

40,927 posts

249 months

Tuesday 26th January 2021
quotequote all
Olivergt said:
I really didn't want to chime in on the Brexit debate as I didn't get a vote as I am resident in Ireland. But I can tell you nobody here will be buying anything from the UK unless it is impossible to get from anywhere else. Anything over a certain value (€120?) is subject to both Import tax (12%) and VAT (21%) which adds 30% to the price.
This isn't quite correct, you do not pay vat twice. There is no duty (under the trade deal that was done at Christmas). The UK vat at 20% is removed and Ireland's vat rate at 21% is applied, you should be no more than 1% worse off. Amazon Ireland for example have really good Brexit information about this and have made it clear that there won't be much, if any, difference. Personal experience on three occasions so far this year would concur (2x Germany, 1x Netherlands).

Chris944_S2

1,918 posts

224 months

Tuesday 26th January 2021
quotequote all
Yes its normal, we have the same here in Switzerland.

As prices here are exorbitant, many also have their cars serviced abroad. They sometimes get checked by customs (typically when returning from Summer holidays), and if they notice work has been done then that work can also get taxed in addition to the new parts.

idealstandard

647 posts

56 months

Tuesday 26th January 2021
quotequote all
Olivergt said:
I really didn't want to chime in on the Brexit debate as I didn't get a vote as I am resident in Ireland. But I can tell you nobody here will be buying anything from the UK unless it is impossible to get from anywhere else. Anything over a certain value (€120?) is subject to both Import tax (12%) and VAT (21%) which adds 30% to the price.

No to mention a lot of products that simply won't ship from the UK to EU countries going forwards, such as seed potatoes and some other seeds.
Yep, I run a company that does a lot of B2C.... 50k a week dive so far into Europe. And the stuff we are getting out, its costing us thousands extra a week in clearance charges and extra carrier fees. It's going to knacker cross border e-tail. but that was just scaremongering, right?

Olivergt

1,337 posts

82 months

Tuesday 26th January 2021
quotequote all
21st Century Man said:
Olivergt said:
I really didn't want to chime in on the Brexit debate as I didn't get a vote as I am resident in Ireland. But I can tell you nobody here will be buying anything from the UK unless it is impossible to get from anywhere else. Anything over a certain value (€120?) is subject to both Import tax (12%) and VAT (21%) which adds 30% to the price.
This isn't quite correct, you do not pay vat twice. There is no duty (under the trade deal that was done at Christmas). The UK vat at 20% is removed and Ireland's vat rate at 21% is applied, you should be no more than 1% worse off. Amazon Ireland for example have really good Brexit information about this and have made it clear that there won't be much, if any, difference. Personal experience on three occasions so far this year would concur (2x Germany, 1x Netherlands).
I agree that is how it should happen with regards to VAT but not all sellers are doing it and it can't be done on S/H items.

On items over 150 euro customs duty of 12% is due. So there is definitely a cost increase post Brexit and an incentive to not buy from the UK.

21st Century Man

40,927 posts

249 months

Tuesday 26th January 2021
quotequote all
idealstandard said:
its costing us thousands extra a week in clearance charges and extra carrier fees.
This is how I'm understanding it, it's not so much the duty/vat issues as there shouldn't be any duty and it should be vat off/vat on, which more or less cancels out. Is it the carriers seizing an opportunity to extort? I never pay FedEx's £12 clearance fee (last year they wanted £127 for a small envelope of plastic clips due to an error, which did get resolved easily enough when queried though).

Similarly (perhaps?), I was living and working in France when the Euro came in and rather than just converting the French Franc into Euros at the given rate and stickering an item at whatever it calculated out at, loads of organisations, particularly retailers, took the opportunity to round up, not by just a few cents either. The rate and price in the outgoing French Francs was actually printed on the receipt too, so it wasn't like the rip off was hidden. People just blamed the Euro when that wasn't actually the problem.





Edited by 21st Century Man on Tuesday 26th January 20:48

Skyedriver

Original Poster:

17,880 posts

283 months

Tuesday 26th January 2021
quotequote all
Well i guess that's Lancia and Alfa and Porsche off my next car list then,,,,,

How do companies such as My Tyres get on, they're German based.

also Bestcarparts and their partner company?

Wonder where my Volvo parts come from?

Edited by Skyedriver on Tuesday 26th January 22:28

21st Century Man

40,927 posts

249 months

Tuesday 26th January 2021
quotequote all
Skyedriver said:
How do companies such as My Tyres get on, they're German based.
With the amount of business they do in the UK my guess is they'll be collecting UK vat on behalf of HMRC at point of sale, so German vat off/UK vat on, there's no duty, so hardly any difference. Except that the vat now comes to the UK instead of staying in Germany.

Someone correct me if I'm wrong.

thebraketester

14,243 posts

139 months

Tuesday 26th January 2021
quotequote all
Also what about website like autodoc?

Olivergt

1,337 posts

82 months

Tuesday 26th January 2021
quotequote all
Just to be perfectly clear, customs duty of 12% is due on certain goods over the value of 150 euro, and then VAT is charged on top of that when importing from UK to Ireland.

Certain goods, includes pretty much everything, there are certain exemptions though.

https://www.revenue.ie/en/importing-vehicles-duty-...

Similar rules apply in the UK although the rate is 2.5% for goods up to 630 pounds. Above that value you have to ring to find out.

https://www.gov.uk/goods-sent-from-abroad/tax-and-...

Stu_g87

6 posts

73 months

Tuesday 26th January 2021
quotequote all
thebraketester said:
Also what about website like autodoc?
I ordered some parts from them the other week, and after some delay I ended up cancelling after being told that they have "temporarily suspended all shipments to the uk".

21st Century Man

40,927 posts

249 months

Tuesday 26th January 2021
quotequote all
Olivergt said:
Just to be perfectly clear, customs duty of 12% is due on certain goods over the value of 150 euro, and then VAT is charged on top of that when importing from UK to Ireland.

Certain goods, includes pretty much everything, there are certain exemptions though.

https://www.revenue.ie/en/importing-vehicles-duty-...

Similar rules apply in the UK although the rate is 2.5% for goods up to 630 pounds. Above that value you have to ring to find out.

https://www.gov.uk/goods-sent-from-abroad/tax-and-...
Ref the UK link, the latest rules are linked in the grey box, there's nothing about duty, it's all about vat.

In the Irish link, see example 3.

The EU/UK trade deal is zero quota, zero tariff (with a few exceptions).



Edited by 21st Century Man on Tuesday 26th January 23:59