General > General Technical Chat
UK abolishes <£15 VAT free imports. EU to follow.
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Monkeh:

--- Quote from: bodger on January 21, 2021, 02:13:06 pm ---Can someone explain how they came up with a figure of £82? For a £200 coat afaik it should be 20% VAT + 2% duties + £8 handling fee so that would be ~£52.

--- End quote ---

UPS charge £15, VAT will be on the item, shipping, and duty.

So assuming the actual price of the item is £200, and the duty is 2% (I'll take your word on that), and shipping was, say, £18, that gets you to £281.40.
bodger:

--- Quote from: Monkeh on January 21, 2021, 03:31:10 pm ---UPS charge £15, VAT will be on the item, shipping, and duty.

So assuming the actual price of the item is £200, and the duty is 2% (I'll take your word on that), and shipping was, say, £18, that gets you to £281.40.

--- End quote ---

I didn't realise the limit for the processing fee was as high as that (£15). The 2% duty figure was just what I could roughly remember the last time I read up on it - the correct figure is 2.5%. But the total makes more sense when factoring in delivery charges, most things I've purchased have been below the £135 value so did not incur a VAT charge on delivery.

Hopefully, the one good thing that comes out of this is I no longer have to worry about incurring a customs charge when buying PCBs between £15-£135, which was a real pain in the butt the last time DHL made the delivery.
Ian.M:

--- Quote from: Monkeh on January 21, 2021, 03:31:10 pm ---UPS charge £15, VAT will be on the item, shipping, and duty.

--- End quote ---
Which is proof that HMRC and the politicians that set VAT rates are no better than a bunch of thieves as a significant proportion of the shipping cost will have been incurred for services provided outside the UK yet there is no reduced VAT rate on incoming international shipping.
IanB:

--- Quote from: Red Squirrel on January 21, 2021, 03:18:22 am ---In the states there are 10's of thousands of different tax jurisdictions for example, I don't even know how sellers are expected to handle all that.  The amount of legwork is just insane. How is it even normally done?

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I assume they must have a massive tax database. For instance, when buying from Amazon recently, the amount of tax to be charged changed when I updated the delivery address to the next city over. It wasn't random either, I could watch the tax amount change when I switched back and forth between address A and address B in adjacent zip codes.

I agree it's insane. Is Amazon really putting all the collected sales tax into the right buckets and then forwarding the revenues to thousands of individual cities, counties and states across the USA?
IanB:

--- Quote from: Monkeh on January 15, 2021, 04:23:42 pm ---What, for example, do I do if I want to buy something from Welectron? Pay them their 19% VAT, somehow claim it back, pay another 20% VAT and a processing fee when it arrives here? Yeah, that sounds stupid - hence why I can no longer do small business with them. Them and thousands of other businesses we're now either locked out of or being penalised for using.

--- End quote ---

Shouldn't the free trade agreement mean you pay VAT in Germany and then the goods are shipped tax paid to the UK? As I understand it there should just be a customs declaration to be completed by the seller.
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