Post-Brexit trade deal - Customs?

[Jonny Hart]

Anyone care to comment on why we have seen a surge of EU non-business orders since Jan 1?

Since Jan 1, we no longer charge VAT to EU customers. My thoughts are that perhaps it is easier to reclaim VAT if it was charged in their own country. A pessimist might say it’s because they don’t realise that they will be charged VAT on import.

I’d say the latter Jonny-how does a private EU individual reclaim VAT?

The same way as a U.K. private individual if they qualify but it will be an easier process if you have a receipt issued in your own country.

[Jonny Hart]

As mentioned above, this is to stop the current £1.5BN lost in VAT revenue every year, largely due to ‘China crap’ being sold on eBay / Amazon with no VAT being collected.

A U.K. vendor must add VAT for a U.K. sale so up until now, this has not been a ‘level playing field’ to use a topical phrase.

As a U.K. vendor myself, surely this is to be celebrated?

[Nine One One]

China Crap as you say from ebay - they try to get you to buy their stuff by actually stating they are in Liverpool, Manchester, London or any other big UK city, so you think delivery will be in a couple of days. Only later when you do a bit of research to find out where the hell the item is, you discover it's on its way from China.
Ebay allows this sort of deception to continue knowingly.

Don’t be surprised then, if you see 20% added for an internal UK sale, as I bet Ebay manage to pick up these so called ‘offshore’ China sellers!

[Jonny Hart]

^ that’s the point! The whole reason is to stop this happening!

[Lightweight_911]

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Just to put things in perspective - everything that is made in China is not crap ....

[911hillclimber]

Too very true.
We moved all our door lock designs to Ningbo, China and after some hand holding the product was really good.
I went to the place 4 times, not a nice place to live, but quite an experience...

[inaglasshouse]

Does that mean that private sales from outside the UK effectively get a 20% tariff? That's a strange side-effect.

No - ebay will add 20% (VAT) to the selling price at check-out which they pass on to HMRC (presumably for a handling fee).

Direct sales will have the VAT collected from you by the courier (+ a handling fee) on arrival in the UK - same as current US imported goods being delivered here by Parcelforce, etc.

I didn't express myself very well. I meant the same that private sales from outside the UK will now attract 20% VAT (to go HMRC) so are 20% more expensive for us than pre brexit - ie a 20% tariff.
Graham

Yes.

[Jonny Hart]

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Just to put things in perspective - everything that is made in China is not crap ....

This is true and I never said it was. We use AC compressors from China.

I first heard the phrase 'China crap' from one of our customers who exports supercars and parts to China.

Her name is Wing Shek and I quote. "I send containers of supercars to China and my brother sends back China crap". When I pressed her as to what she meant, she said "mobile phone cases, usb sticks, that kind of thing.." True story

[911hillclimber]

Plus we cannot do without them at all.
We are a nation dependant on so many others, for the trivial to the important, especially so on China.

[IanM]

No - ebay will add 20% (VAT) to the selling price at check-out which they pass on to HMRC (presumably for a handling fee).

Ebay will charge the buyers a handling fee?? How much?

Direct sales will have the VAT collected from you by the courier (+ a handling fee) on arrival in the UK - same as current US imported goods being delivered here by Parcelforce, etc.

Will a receipt be required from the private seller? (EU)

[Lightweight_911]

Ebay will charge the buyers a handling fee?? How much?

I don't think so - what I meant is that ebay will probably charge the HMRC for collecting the VAT on their behalf

Will a receipt be required from the private seller? (EU)

I think it's more a case of the courier requiring a sales invoice from the seller before accepting a package for shipping.

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[gridgway]

I don't think so - what I meant is that ebay will probably charge the HMRC for collecting the VAT on their behalf

That'll be interesting considering all the businesses that collect VAT for HMRC at no cost

[davidoft]

I don't think so - what I meant is that ebay will probably charge the HMRC for collecting the VAT on their behalf

That'll be interesting considering all the businesses that collect VAT for HMRC at no cost

i was thinking the same, i imagine its probably illegal to add a charge for it anyway

[christaylorsound]

I don't think so - what I meant is that ebay will probably charge the HMRC for collecting the VAT on their behalf

That'll be interesting considering all the businesses that collect VAT for HMRC at no cost

Not always true. My business is on HMRC's 'flat rate' scheme. Different businesses get different rates, but in TV it is normally 16.5% of total income including VAT so a bill of £100 + VAT = £120 (16.5% of 120 = 19. I repay £19.80. A small 'fee' for collecting VAT on their behalf, but it does add up.

[gridgway]

I don't think so - what I meant is that ebay will probably charge the HMRC for collecting the VAT on their behalf

That'll be interesting considering all the businesses that collect VAT for HMRC at no cost

Not always true. My business is on HMRC's 'flat rate' scheme. Different businesses get different rates, but in TV it is normally 16.5% of total income including VAT so a bill of £100 + VAT = £120 (16.5% of 120 = 19. I repay £19.80. A small 'fee' for collecting VAT on their behalf, but it does add up.

It's not really a fee though, it's there as you can't claim VAT on purchases.