Brexit deal and imports

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Keith L
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Re: Brexit deal and imports

Post by Keith L »

It's easy for me to misunderstand the details but ... I'm puzzled.

Is that VAT 9% Netherlands for books, or UK VAT?

As it's an export from the Netherlands to outside the EU I would expect no Netherlands VAT to be charged.

And books in the UK are zero rated VAT.

So why is there any VAT at all or collection charge?

I'd emphasise this is only for books being UK zero rated - other products including plants aren't so I'd expect that to be applied as now there is no exemption for small value items and EU sellers have to be UK VAT registered and charge it on sales to the UK.

But something like this would have happened even without Brexit as there is a major change to VAT in the EU postponed from last summer and scheduled for this summer where VAT for all companies will change from the sellers country VAT regime to the purchasers country VAT regime (large sellers have had to do that already) which will need much more work and record keeping and no doubt chaos! The small value under Euro 22 will also be scrapped akin to what has happened here.

I sent 4 parcels of books by DPD to different EU countries last week and all have had a different "experience" in modern parlance from what seems right to the absolutely crazy!

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Keith
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el48tel
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Re: Brexit deal and imports

Post by el48tel »

Keith L wrote: Thu Jan 28, 2021 3:21 pm It's easy for me to misunderstand the details but ... I'm puzzled.

Is that VAT 9% Netherlands for books, or UK VAT?

As it's an export from the Netherlands to outside the EU I would expect no Netherlands VAT to be charged.

And books in the UK are zero rated VAT.

So why is there any VAT at all or collection charge?

I'd emphasise this is only for books being UK zero rated - other products including plants aren't so I'd expect that to be applied as now there is no exemption for small value items and EU sellers have to be UK VAT registered and charge it on sales to the UK.

But something like this would have happened even without Brexit as there is a major change to VAT in the EU postponed from last summer and scheduled for this summer where VAT for all companies will change from the sellers country VAT regime to the purchasers country VAT regime (large sellers have had to do that already) which will need much more work and record keeping and no doubt chaos! The small value under Euro 22 will also be scrapped akin to what has happened here.

I sent 4 parcels of books by DPD to different EU countries last week and all have had a different "experience" in modern parlance from what seems right to the absolutely crazy!

Regards

Keith
My assumption too ... but this was UK VAT ... I assume charged on production of a photo book which I assume is a "luxury" item and contains other services not a standard text book which I do know to be zero rated.
To what the other possible charges plus service charge refer, I know not, but I assume that Blurb are at least making me aware that in these interim days, I may be hit for a few Euros more.
Endeavouring to grow Aylostera, Echinocereus, Echinopsis, Gymnocalycium, Matucana, Rebutia, and Sulcorebutia. Fallen out of love with Lithops and aggravated by Aeoniums.
Currently being wooed by Haworthia, attempting hybridisation, and enticed by Mesembs.
Keith L
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Re: Brexit deal and imports

Post by Keith L »

As I said easy for me to misunderstand! Yes that might well not fall within the book category. It is soooo complicated!

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Keith
Keith L
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Re: Brexit deal and imports

Post by Keith L »

One further thought. If they've charged UK VAT then the parcel should be sent in parcel parlance DDP - duty paid including VAT - and I wouldn't expect you to have any charge before delivery unless the UK authorities decide there is an error in the amount but my understanding in that situation is that the sender would be liable for any additional VAT .

In theory their delivery charge might have increased as it would still need to be cleared through customs by the carrier. But otherwise my expectation is that the "book" excluding delivery would cost the same as pre 1st January as both would have had UK VAT. So I will be interested in what actually happens!

I've driven myself crazy the last month to try to understand the situation of sending books to the EU - information is fragmented, hard to find and then difficult to interpret and understand.

Keith
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el48tel
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Re: Brexit deal and imports

Post by el48tel »

:grin:
Endeavouring to grow Aylostera, Echinocereus, Echinopsis, Gymnocalycium, Matucana, Rebutia, and Sulcorebutia. Fallen out of love with Lithops and aggravated by Aeoniums.
Currently being wooed by Haworthia, attempting hybridisation, and enticed by Mesembs.
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MatDz
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Re: Brexit deal and imports

Post by MatDz »

I found this explaining purely the new import tax implications pretty well: https://www.reddit.com/r/LegalAdviceUK/ ... e_uk_as_an

To sum up, nothing changes for and above £135, except the goods should be sold "net" as the UK VAT will be paid on arrival, and for less than that the seller is supposed to register with HMRC and pay the UK TAX, which is then directly charged to the buyer, no more tax on arrival, except maybe import duty to cover potential custom inspections? If the seller fail to do the latter, the buyer is basically double taxed with the EU tax on point of sale and UK TAX on arrival and nothing can be done to prevent that.

Edit: I'm aware it's t'Internet, but at least the user "pfl..." is quite respected in that community.
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Tony R
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Re: Brexit deal and imports

Post by Tony R »

el48tel wrote: Thu Jan 28, 2021 2:53 pm
Tony R wrote: Thu Jan 28, 2021 2:29 pm Indeed, Blurb seem to be well on top of their obligations re. UK VAT and our potential 'problems' re customs and handling charges this side of the water. Let us know how you get on please, my book will be a day or two behind yours :smile:
Indeed ...I will
Did you use their voucher code for 30% off? Without that, the additional costs would have been uncomfortable.
Certainly did (tu) I'd been waiting for one since Xnas.

Yes, Keith, production and printing of such a book is considered not zero-rated and Blurb collect the 20% UK VAT on behalf of HMRC as per the latter's regulations. The courier is I understand entitled to charge for potential customs/inspection charges at their whim and a price of their choosing, I think! But we will see ....
I fear small imports and exports by imdividuals will decline in the future?
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Stuart
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Re: Brexit deal and imports

Post by Stuart »

As Keith mentions, the VAT changes had been planned for last year but were postponed until this year. The idea was to protect UK business that had to charge 20% VAT, from cheaper foreign imports that were sent with no VAT. The same thing happened a few years ago when Amazon bulk shipped CDs from the UK to Jersey not in the UK or the EU, and no VAT, and them sent them back to UK addresses with no VAT making it harder for UK retail shops to compete.
The problem for us is that the plants and seeds that we're buying from abroad are bought because they're not easily available in the UK. I'm not sure that many UK businesses were affected by people buying online from abroad but someone sitting at a desk somewhere must have thought it was a good idea to change things.

Stuart
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el48tel
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Re: Brexit deal and imports

Post by el48tel »

Stuart wrote: Thu Jan 28, 2021 5:22 pm As Keith mentions, the VAT changes had been planned for last year but were postponed until this year. The idea was to protect UK business that had to charge 20% VAT, from cheaper foreign imports that were sent with no VAT. The same thing happened a few years ago when Amazon bulk shipped CDs from the UK to Jersey not in the UK or the EU, and no VAT, and them sent them back to UK addresses with no VAT making it harder for UK retail shops to compete.
The problem for us is that the plants and seeds that we're buying from abroad are bought because they're not easily available in the UK. I'm not sure that many UK businesses were affected by people buying online from abroad but someone sitting at a desk somewhere must have thought it was a good idea to change things.

Stuart
"politician" and "good idea" are not two ideas I'd use in the same paragraph, let alone sentence.
Endeavouring to grow Aylostera, Echinocereus, Echinopsis, Gymnocalycium, Matucana, Rebutia, and Sulcorebutia. Fallen out of love with Lithops and aggravated by Aeoniums.
Currently being wooed by Haworthia, attempting hybridisation, and enticed by Mesembs.
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FredG
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Re: Brexit deal and imports

Post by FredG »

el48tel wrote: Thu Jan 28, 2021 8:32 pm "politician" and "good idea" are not two ideas I'd use in the same paragraph, let alone sentence.
That depends what you want to do with/to the Politician, tel.
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