| General > General Technical Chat |
| UK abolishes <£15 VAT free imports. EU to follow. |
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| Fraser:
The other issue I have had is my parcel being delivered by the courier and no fee demanded at the time of delivery. Then a week or so later I receive a letter demanding payment of VAT and the paperwork fee. One courier company tried to hit me for VAT and paperwork fees a week after delivery on an item from Turkey. The accompanying documentation clearly detailed that it was a P2P purchase. I enlightened that courier company about the VAT rules active at that time. P2P non commercial = no VAT was due. They never contacted me again. Fraser |
| vad:
--- Quote from: mikeselectricstuff on January 08, 2021, 12:14:08 pm ---So how exactly are they going to police collection from foreign sellers ? --- End quote --- Marketplaces like eBay will automatically collect VAT, based of shipping address. About a year ago they implemented similar thing for sales tax collection if the US: Let say I’ve sold used lens on eBay for $2,000, and the buyer is in Kirkland, WA. The buyer will be charged $2,204. Of those, $130 is collected Washington state sales tax, $0 is King county sales tax, and $74 - Kirkland city state tax. I, as a seller, after being ripped of by eBay and PayPal, will get $2,000 less $220.40 eBay final fee (yes, they compute final value fee on tax too), other eBay fees if any (placement fee, various marketing fees, purchase of discount shipping labels, etc), and $64.22 PayPal fee (they charge PayPal fees taxes too). So at the end: Buyer pays $2,204 Seller gets not more than $1,715.38 into their PayPal account WA revenue office gets $130 directly from eBay Kirkland city gets $74 directly from eBay PayPal pockets $64.22 eBay rips off the seller $220.40+ As a seller, there is no way to evade sales taxes |
| SilverSolder:
--- Quote from: vad on February 07, 2021, 03:20:42 pm --- --- Quote from: mikeselectricstuff on January 08, 2021, 12:14:08 pm ---So how exactly are they going to police collection from foreign sellers ? --- End quote --- Marketplaces like eBay will automatically collect VAT, based of shipping address. About a year ago they implemented similar thing for sales tax collection if the US: Let say I’ve sold used lens on eBay for $2,000, and the buyer is in Kirkland, WA. The buyer will be charged $2,204. Of those, $130 is collected Washington state sales tax, $0 is King county sales tax, and $74 - Kirkland city state tax. I, as a seller, after being ripped of by eBay and PayPal, will get $2,000 less $220.40 eBay final fee (yes, they compute final value fee on tax too), other eBay fees if any (placement fee, various marketing fees, purchase of discount shipping labels, etc), and $64.22 PayPal fee (they charge PayPal fees taxes too). So at the end: Buyer pays $2,204 Seller gets not more than $1,715.38 into their PayPal account WA revenue office gets $130 directly from eBay Kirkland city gets $74 directly from eBay PayPal pockets $64.22 eBay rips off the seller $220.40+ As a seller, there is no way to evade sales taxes --- End quote --- And the funny thing is, sales tax is collected on used stuff too, e.g. selling a dilapidated old pot or pan or piece of rope now attracts sales tax, which was never the case in the past - imagine charging sales tax at a garage sale! This is simply a downside of using "Big Tech" to sell your stuff. Perhaps smaller web sites will have a renaissance, since they can now be cheaper than Big Tech? Shopping locally, without all kinds of people insisting on having a cut of the deal just for existing, is making more and more sense... |
| tszaboo:
--- Quote from: bodger on February 07, 2021, 02:01:46 pm ---Hopefully, this is also true for DHL deliveries. It was a right pain when I used to order over the £15 limit. Now hopefully I don't have to worry about orders under £135 being held back till customs is paid. --- End quote --- VAT is calculated for the product, shipping charges and any other charges. Meaning that you are practically never below the 15 GBP limit, since the shipping with DHL is more than that. |
| Kjelt:
The customs office blooper of the year. This guy ordered an €50 clockradio in Japan and was charged €73000 because the customs estimated the value of thepackage as €300000 without opening it :-DD (Dutch audio only but with the above explanation there should not be an issue) https://www.sgxl.nl/eddy-zoey-73000-euro-pakketje |
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