General > General Technical Chat
UK abolishes <£15 VAT free imports. EU to follow.
madires:
--- Quote from: Fraser on January 26, 2021, 01:09:15 pm ---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 !
--- End quote ---
Unfortunately some sellers have problems understanding VAT. If an EU seller send goods to a buyer in the UK, he doesn't have to bill VAT: https://www.accountancyeurope.eu/publications/vat-customs-duty-and-brexit-prepare-now
SilverSolder:
--- Quote from: Fraser on January 26, 2021, 01:09:15 pm ---
[...] 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 ! [...]
--- End quote ---
Yes, the EU based sellers now have to treat the UK as an export - which is of course more hassle, so many sellers choose to leave the price alone and pocket the difference as a fee for the extra processing!
--- Quote ---[...]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 [...]
--- End quote ---
eBay and Amazon in the US collect sales tax on all transactions now, even used stuff sold privately.
In a way, this has now given an advantage to smaller sites that don't do that.
SilverSolder:
--- Quote from: MK14 on January 26, 2021, 02:02:21 pm ---[...]
I expect that eventually thinks will settle down.
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Yes, but it will settle on a generally higher price level (for UK consumers). As I noted above, sellers of small items are not going to bother with VAT refunds etc. in most cases, it's just too much hassle.
The price of freedom, innit?
I know several UK sellers that work that way too - i.e. an international customer gets to pay the UK price including UK VAT, and seller does not refund that VAT. Talking about VAT refunds would only be entertained for bigger ticket items.
MK14:
--- Quote from: SilverSolder on January 26, 2021, 03:27:29 pm ---Yes, but it will settle on a generally higher price level (for UK consumers). As I noted above, sellers of small items are not going to bother with VAT refunds etc. in most cases, it's just too much hassle.
The price of freedom, innit?
I know several UK sellers that work that way too - i.e. an international customer gets to pay the UK price including UK VAT, and seller does not refund that VAT. Talking about VAT refunds would only be entertained for bigger ticket items.
--- End quote ---
Not necessarily higher, possibly lower prices, in a number of cases.
Hypothetical example, but hopefully typical of what eventually happens. I just don't know the details and which countries will be involved:
Before Brexit, buying ebay US items in the UK, could have meant. Very high postal charges, big VAT/Duty bills, and big administration fees from the delivery company, plus possibly delays.
So, there could be powerful trade deals now, e.g. with the US.
Which could then mean, greatly reduced postal charges, easier/reduced VAT/duty (i.e. Tariff free or reduced), and hence no extra delivery charges or delays.
Possibly wishful thinking on my part, though :)
But let's see.
Monkeh:
--- Quote from: Fraser on January 26, 2021, 01:09:15 pm ---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.
--- End quote ---
I'm still waiting to hear any well thought out theories of positives, let alone any indication of actually seeing a positive.
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