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| UK abolishes <£15 VAT free imports. EU to follow. |
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| Monkeh:
So a little looking around finds this: https://www.legislation.gov.uk/uksi/2018/1376/contents E: And as they slowly trickle updates, that legislation is revoked so now I need to figure out what replaces it. |
| Fraser:
The latest story on the VAT surprise ....... Brexit parcel price shock: 'I had to pay £30 for a gift' https://www.bbc.co.uk/news/business-55752541 It appears many thought that VAT between UK and EU countries was not going to change. There will be many who are surprised by the addition of VAT as confusion surrounds the EU UK free trade deal. We always paid VAT in the past though, it was just the VAT of the country we bought from that was part of the buying price. The issue occurs if the seller includes local VAT in the price then adds additional UK VAT on top so the buyer pays VAT twice ! The other issue is VAT now being added to all used items imported into the UK so your simple eBay purchases from outside the UK just got 20% more expensive despite being personal P2P transactions or gifts over £39. Such is life I suppose.... Death and Taxes, Death and Taxes ;D There were always going to be some negative consequences to leaving the EU and such should have been expected. Theoretically, there are positives to offset such negatives though. The changes to the VAT system in the UK on 1st January have been a surprise to many though. Fraser |
| olkipukki:
--- Quote from: Fraser on January 26, 2021, 01:09:15 pm ---The latest story on the VAT surprise ....... --- End quote --- "I was shocked, because I thought that with the Brexit deal, this wouldn't happen," he :rant: said. :-DD |
| Fraser:
Yes it is early days and the nightmare that was the BREXIT negotiations has many confused about what was actually agreed in the end. It is not always in the interests of Politicians to tell the public “the whole story” ;D I suppose the additional VAT will help to pay towards the massive Coronavirus debt that we will have though so it is just additional taxation in time of need. Someone has to pay for all the outgoings of our country after all. Paying as you spend on imports is likely fairer than an increase in ‘across the board’ taxes. They may still come of course! I certainly would not want to be the Chancellor during these very challenging times ! I told my wife that a sensible way forwards would be for all countries leaders to get around the table, decide how much Coronavirus has cost to date per country on average, project short term future inoculation costs and come up with a figure that is the “Coronavirus write-off”. Then every country is allowed to print that sum of money or add it to their countries reserves. If all countries do it, no hyperinflation and no crazy debt to worry about. Maybe I should run for UK PM ;D Fraser |
| MK14:
--- Quote from: Nauris on January 22, 2021, 08:48:48 pm --- --- Quote from: MK14 on January 21, 2021, 11:35:03 pm --- I suspect this new policy (which seems to really come from the EU, rather than the UK, I suspect). Will back-fire. They want huge amounts of paper work to be filled in, because someone buys a £0.99 pack of small electronics from a small Chinese seller, who is making pennies, or not much more, on each sale. ... Getting the foreign sellers to have to do stuff like paperwork, for the EU/UK tax affairs, on low value items, such as £0.99 is probably not the best of choices. I suspect. --- End quote --- I took some time and read some EU papers and this is totally different than how EU intends to do this. EU legislation works like this (from June 2021) : 1. It is an OPTION for non-EU seller/marketplace to register for IOSS scheme to prepay VAT. (needs tax representative in EU) It is very clearly stated that this is not mandatory. 2. Post/Courier collects it (and charges an fee) 3. Regular way (at the customs) So basically you can collect VAT and then your products don't need to wait at customs -> fast delivery, happy customer. But if you don't want to bother that is fine also but then your customer needs to wait more and pay the handling fee. I think it is rather good approach. Ebay, Amazon etc with big volumes will surely register to make shopping easier but smaller outfits can just leave it to the post/courier like before. https://ec.europa.eu/taxation_customs/sites/taxation/files/vatecommerceexplanatory_28102020_en.pdf --- End quote --- Sorry for the late response. Somehow, I missed your original reply, until the thread got posted to again, today. To a reasonable extent I agree with you. I expect that eventually thinks will settle down. |
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