Didn’t realise but looks like Ali express now charging vat at point of sale for everything.
Low value consignment relief (LVCR) for items under £15 is also now abolished in UK. So no getting around it that way either.
Only ‘gifts’ are VAT free.
Good for larger items so you know you’re not getting a surprise cost and I’m guessing you won’t get the £8 Royal Mail charge for it now if it’s already paid.
Low value consignment relief (LVCR) for items under £15 is also now abolished in UK. So no getting around it that way either.
Only ‘gifts’ are VAT free.
Good for larger items so you know you’re not getting a surprise cost and I’m guessing you won’t get the £8 Royal Mail charge for it now if it’s already paid.
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sorted byIf you read, ec.europa.eu/taxation_customs/news/new-form-customs-declaration-low-value-consignments_en
then you'll see the change has also been applied throughout the EU, it just happened at the same time as Brexit.
"From 1 January 2021 the existing VAT exemption for goods up to 22 € will disappear. In order to allow VAT to be levied, all imports into the EU will have to be declared at the border using an electronic customs declaration" (edited)
Stop buying **** from china then
Link to EU UK Trade Agreement
Yeah it’s just the difference between excluding VAT vs including VAT
I imagine a lot of people will get tripped up!
Actually not a brexit thing. EU are also now paying VAT on them too so we’d have had it either way.
Small companies avoiding paying taxes = fraud
But if we were still in EU we’d have to pay it also? So how so?
The £258 won’t be inclusive of German VAT. A German retailer exporting won’t charge local sales tax as well. Have a look at the same item on Thomann’s GB website and the DE one and you’ll see that.
So you pay VAT at 20% (if less than £135 the retailer must charge it directly at checkout; if over then they can do but if they don’t you pay on import)
A customs charge at x% which I believe only applies over a £390 threshold for EU imports
Handling charge - If item is over £390 then I would definitely expect to pay the usual £8-12. it seems unclear how this is going to be administered for items where there is VAT payable but no customs ie between £135-390. I would anticipate there will be a charge. Should be no charge for <£135 items at all as VAT is already paid. This is down to parcel companies as i understand it - not HMRC
So, overall yes it does make shopping more expensive for higher value items . Low value items the difference is marginal
Note; the above is only my understanding having pored through the various gov websites! Happy to be corrected (edited)
You've read the tariff table wrong. ;-)
A third country duty is defined as the duty payable in the absence of any other type of tariff measure.
The table has a line applicable to the European Union (Germany). It is subject to tariff preference measure and shows as 0%. The third country duty therefore does not apply.
Yeah that’s it. Some items I would avoid thinking of the £8 on top of customs would make it too expensive. Now can make a proper decision and know no surprise costs.
The fact it's a German store, means that you will pay no duty because of the trade deal agreement the UK has with the EU
The reply above is wrong.
It is over £135 so Thomann will NOT charge you VAT when you purchase. All prices will be stated excluding VAT. When the item is imported you should build in having to pay
- VAT at 20%.
- A customs charge. I’m not sure what the item is but a guitar say would also attract a customs charge of 2%. But as item is less than £390 this should be zero in your case. You can look up rates online
- handling fee (not really sure whether this will be charged yet but account for it in case) (edited)
Thanks, it looks like a great deal..... but with Vat, maybe not
m.thomann.de/gb/…htm
This is the most likely process now. People are confusing the Brexit deal and are thinking nothing has changed when it is now exactly like buying from the Amazon US site.
In the OP's example, if the price on the Thomann website is inclusive of German VAT, then the price that will likely be charged will calculated as follows -
£258 / 1.19 x 1.20 + (258-135) x 0.025 + shipping cost + handling fees charged by the delivery company; the latter only if Thomann doesn't pay the UK VAT and Customs charges itself. The 19 and 20 are the German and UK VAT rates respectively while the 2.5% is the UK Customs duty for items above £135 but up to £630. The main difference essentially is the VAT differential and Customs charges for anything above £135. So yes, Brexit has made shopping expensive.
I am hoping someone can confirm the above as well.
I think I'll continue to hold off and wait for a UK price drop
BTW, the price for this item has been sub-£350 for a long while and black friday saw it drop to around £318 at both DV247 (UK) and Thommann (Germany).... But thommann dropped it to 258,basically at the stroke of midnight (out of the EU)
I think this is point of abolishing the <£15 relief rate, isn't it? To claw back some revenue on all those Chinese cheap imports !
There's always been VAT on EU to UK goods.
Because we were all in the Single Market.
Yeah I’d still have said holiday abroad if I was going to Spain etc. Daft wording really.
The government has said, quoting from the GOV.UK website, you have to declare the goods and may have to pay customs duty if you exceed your allowances. I tested it out on the GOV.UK online customs declaration by bringing in a computer costing €1,000 from Germany. It calculated the tax payable as £180.58 (VAT), £0 (customs duty).
So if (to use the above example) the user purchased his guitar from Thomann, originally made in Mexico, say, when it was imported to the UK by Thomann, the German retailer, he would be liable for VAT + the 2% + handling?
Great! Can you share the link to the calculator please? I can't for the life of me find it.
Edit: Is the duty on your laptop/computer only 0% because that is the third country rate anyway? trade-tariff.service.gov.uk/com…000 (edited)
Definately didn't ask you for useless advice, thanks but no thanks.
Bit unfortunate timing i suppose, didn't realise until just now, guess 3 weeks wait ain't gonna be worth it in the end 🏽
Vat on AliExpress started when Brexit changes came into effect coincidence I think not
Nearly every item you buy has components from China this will effect you even tho you don't buy items from china
Thanks... Though that looks like an "eBay UK" rather than a true UK as says guaranteed delivery before 7 February? Well that is pretty bad for UK to UK and seems more like coming from China first?!
Edit: though suppose that also sounfs like a typical money back disclaimer. Just when I shop on eBay I try and filter fake Vs real UK shops by their delivery date! (edited)
Got a 5% off offer come through on my email showing 20.99 reduced to 19.94
If i then go to the item it shows £25.19, and an offer of 19.94
The difference between 25.19 and 20.99 is 20%. Didn't press the button because i know my offer isn't right at 19.94, it's going to be 19.94+ 20%
No, before Brexit you would pay VAT of the country you are buying from in the EU. So in Germany its 19%, in the Netherlands 21% and then you don't pay anything to HMRC in the UK. Now you shouldn't ned to pay the EU VAT but the store has to collect it on behalf of HMRC instead. No more issues with the Royal Mail charges, but the store has to pay extra to get VAT registered in more countries, or sell via somewhere like eBay who will sort it out for them.
It is a carefully engineered conspiracy, obviously. If we had not left the EU, the EU would not have decided to implement this change, and there would be no VAT charges ever. Forever ever. Ever ever.
Over £135 the onus is in the buyer to prove VAT and any other taxes have been paid to HMRC, or the courier can collect on behalf and charge fees.If they undervalue the declaration it will be stopped as no VAT as been paid. The courier is also entitled to refuse to carry the goods without proof of VAT and its meant to be if this reaches the shores it will be returned to sender. If they do open and value at above £135 you are looking to pay everything owed along with a courier handling fee and a possible slap to the seller. Also pray nothing "happens" to said parcel as insurance will pay to the value of the goods declared. (edited)
Also if customs stop enough shipments being undervalued by a specific seller they will be blacklisted by the HMRC and have shipments of theirs automatically prohibited from entering the country and returned.
Yes when goods are sold on but many high ticket items from planes and ships to lorrys enable the vat to be reclaimed (usually) or are Zero rated and even when eventually sold with various schemes little if any finds it's way to gov coffers. The 80 Billion figure also includes lots of things like imported electricity etc etc. these high value items distort the figures
Then we have services...
"For tax on services sourced from countries outside the UK, there are a number of steps that should be followed. However, this can be applied both to services from EU countries, as well as non-EU countries.
If you are purchasing services from outside the UK, you should follow a procedure called reverse charge, also known as ‘tax shift’.
This is when you credit your VAT account as if you had supplied the services yourself, then deduct the same amount – the two cancel out meaning you do not pay VAT."
So 16 Billion is let's say optimistic. (edited)
Everywhere.
Let's say for example I buy a pair of second hand shoes for £80 from an EU country, from a private individual, via a Facebook ad.
They obviously are not registered for VAT, therefore cannot pay it to HMRC.
What happens in this situation? I have read the gov.uk pages but can't find any info about what normally happens here.
I want to purchase a £258 item from Thommann (online German music store).... do you know if I would pay duty (I did look on govt website but got confused, as it mentioned the onus being on the retailer to pay or something?
Cheers and Happy New Year