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Tax on goods from EU surely not correct?

297 replies

floridapalmtree · 06/01/2021 12:02

Husband has just had messages from DHL saying they will not deliver goods until £67 tax and import duty is paid. This is on clothing of £240. So 20% added. The items were ordered on 29 December so before Brexit exit.

Sister in law also ordered some goods from same company, also on 29 December, which were delivered yesterday but didn't have any tax to pay, think she may have spent less though.

AIBU that this is too much money? or is this just the way things are going to be post Brexit?

OP posts:
Thread gallery
5
sadcatdiary · 07/01/2021 14:12

@PolarExpressislate

So predictable that Remainers are still moaning bitter whingebags.
What exactly are you doing? Oh, that's right. Moaning. Biscuit
Haffiana · 07/01/2021 14:31

@ListeningQuietly

Haffiana Use the proper information then your stuff will get through www.gov.uk/export-goods

This has been on the cards since June 2016 so presumably you are signed up for the HMRC updates

Yes, I've seen that. I was asking for SPECIFIC examples from someone who claimed they are 'selling happily' to the EU, just what they had to do, and how long it took them.

I didn't even ask if they had costed how much it is costing them, time being money for us ACTUAL real-life exporters...

ListeningQuietly · 07/01/2021 14:37

Haffiana
If you want to go toe to toe with HMRC based on an anonymous pro Brexit MN poster, that is your choice.

Haffiana · 07/01/2021 14:58

@ListeningQuietly

Haffiana If you want to go toe to toe with HMRC based on an anonymous pro Brexit MN poster, that is your choice.
ListeningQuietly I think you misunderstand me and misunderstand my posts. I have no idea what your post means or what relevance it has to what I quoted or posted.

I spend my professional life working with, interpreting and applying HM Guidelines.

ListeningQuietly · 07/01/2021 15:29

Haffiana
In that case you will well know that HMRC have been utterly useless in communicating how the Tariff will be applied

and that anybody who reckons they are getting around the rules is probably not telling the truth

Yes the deal was only on 24th December
but its the same deal that the EU published in 2017
and the tariff is the same one we've always had

Unsure33 · 07/01/2021 15:32

Most companies have a vat deferment account .

You pay the vat but deduct it at point of payment.

ListeningQuietly · 07/01/2021 15:35

Most companies have a vat deferment account.
No.
Most companies DO NOT

In fact a lot of companies are not VAT registered
and a massive number do not trade outside the UK
and an even larger number have never traded outside the EU

so for the vast majority of companies
the leap back in time to 1988
is rather a nasty shock

DGRossetti · 07/01/2021 15:38

In that case you will well know that HMRC have been utterly useless in communicating how the Tariff will be applied

William Shatner was tweeting about it (costing him £1,000 so he would have to stop exporting to the UK) back in October 2020.

Maybe Star Trek was a documentary ?

TonMoulin · 07/01/2021 15:42

@MrsMiaWallis

I am actively looking for non-UK companies to replace the UK ones I used to buy from. The increased cost that I have seen on the likes of Amazon.co.uk means it's not an economical option for me anymore (I'm in the EU). I have moved to amazon.de

That's of course your choice. Our EU customers are still ordering from us and it's not costing them any more that it was before.

I’m wondering which products you are selling too and how you can manage to not have anything to add vs what we had before

Mainly because what I’ve heard so far from people in the eu is the opposite

Clavinova · 07/01/2021 15:48

Money Guide Ireland - several Irish posters on this thread;

For the next 6 months -

From Jan 2021 to July 2021, if the value of a package delivered from the UK to Ireland is less than €22 (including delivery charges), then it will be exempt from Irish import VAT.
This means that on packages under €22–Irish shoppers using most UK websites should see price reductions. (Amazon UK is doing it for items sold by them).

These import VAT related price reductions will only last until July 2021 because Ireland (EU) is abolishing the import VAT exemption on low value parcels. From July 1st 2021 Irish VAT will be charged on all UK and other non EU orders delivered to Ireland. The retailers are supposed to charge the VAT at checkout from July–so we expect to see more confusion with lots of non EU sellers come July 2021. For sellers on Amazon–the Irish VAT will be taken care of by Amazon on orders under €150. So we expect to see more small non EU retailers moving on to Amazon or similar marketplaces.

Charges on Books : There was an issue in the first few days with books sold by Amazon to Ireland. Books are 0% VAT in the UK and Ireland–but Amazon was adding 13.5% Irish VAT to books in orders over €22.
We reported the error to Amazon and when we checked on Jan 6th it was fixed. So you pay the same price on books at Amazon as you did pre Brexit.

some third-party sellers on Amazon might not include duty or VAT in their charges–so it is probably best to avoid them on orders over €150 and to make sure there is something showing in the “Import Fees Deposit” on orders under €150 and over €22.

Our tip is to try and order only those items that are “sold by Amazon” or “Fulfilled by Amazon”. That way, you should avoid any surprise VAT or duty charges on delivery with admin fees added by couriers.

www.moneyguideireland.com/vat-and-online-shopping-in-the-uk-after-brexit.html
www.moneyguideireland.com/buying-from-amazon-uk-after-brexit.html

Unlike the Amazon UK site, the German Amazon site does not seem to have the option of free delivery to Ireland. Even Amazon Prime members have to pay the same as everyone else for delivery to Ireland.

Some examples of Amazon.de delivery Charges to Ireland
A PS4 Standard Delivery to Ireland–€11.97 weight 1kg
A Laptop priority delivery to Ireland. €11.40 Weight 750g
A Keyboard (Musical) – 3.75kg. Standard delivery €14.31
Amazon Echo Dot – Delivery not possible to Ireland.
Kindle Fire Tablet – Delivery not possible to Ireland

Checked January 2021

www.moneyguideireland.com/amazon-germany-delivery-charges-to-ireland.html

OchonAgusOchonO · 07/01/2021 15:53

[quote Clavinova]Money Guide Ireland - several Irish posters on this thread;

For the next 6 months -

From Jan 2021 to July 2021, if the value of a package delivered from the UK to Ireland is less than €22 (including delivery charges), then it will be exempt from Irish import VAT.
This means that on packages under €22–Irish shoppers using most UK websites should see price reductions. (Amazon UK is doing it for items sold by them).

These import VAT related price reductions will only last until July 2021 because Ireland (EU) is abolishing the import VAT exemption on low value parcels. From July 1st 2021 Irish VAT will be charged on all UK and other non EU orders delivered to Ireland. The retailers are supposed to charge the VAT at checkout from July–so we expect to see more confusion with lots of non EU sellers come July 2021. For sellers on Amazon–the Irish VAT will be taken care of by Amazon on orders under €150. So we expect to see more small non EU retailers moving on to Amazon or similar marketplaces.

Charges on Books : There was an issue in the first few days with books sold by Amazon to Ireland. Books are 0% VAT in the UK and Ireland–but Amazon was adding 13.5% Irish VAT to books in orders over €22.
We reported the error to Amazon and when we checked on Jan 6th it was fixed. So you pay the same price on books at Amazon as you did pre Brexit.

some third-party sellers on Amazon might not include duty or VAT in their charges–so it is probably best to avoid them on orders over €150 and to make sure there is something showing in the “Import Fees Deposit” on orders under €150 and over €22.

Our tip is to try and order only those items that are “sold by Amazon” or “Fulfilled by Amazon”. That way, you should avoid any surprise VAT or duty charges on delivery with admin fees added by couriers.

www.moneyguideireland.com/vat-and-online-shopping-in-the-uk-after-brexit.html
www.moneyguideireland.com/buying-from-amazon-uk-after-brexit.html

Unlike the Amazon UK site, the German Amazon site does not seem to have the option of free delivery to Ireland. Even Amazon Prime members have to pay the same as everyone else for delivery to Ireland.

Some examples of Amazon.de delivery Charges to Ireland
A PS4 Standard Delivery to Ireland–€11.97 weight 1kg
A Laptop priority delivery to Ireland. €11.40 Weight 750g
A Keyboard (Musical) – 3.75kg. Standard delivery €14.31
Amazon Echo Dot – Delivery not possible to Ireland.
Kindle Fire Tablet – Delivery not possible to Ireland

Checked January 2021

www.moneyguideireland.com/amazon-germany-delivery-charges-to-ireland.html[/quote]
What's your point? I, and plenty of other Irish people, are aware of the current €22 limit. However, that doesn't really help for items about that limit. I ordered something today that cost €68. I went with the EU based supplier as it was cheaper.

Haffiana · 07/01/2021 15:55

@ListeningQuietly

Haffiana In that case you will well know that HMRC have been utterly useless in communicating how the Tariff will be applied

and that anybody who reckons they are getting around the rules is probably not telling the truth

Yes the deal was only on 24th December
but its the same deal that the EU published in 2017
and the tariff is the same one we've always had

Yes. Exactly. I was requesting that one of those not telling the truth posters expanded a little on their claim that all was happy with exporting and importing to the EU and no problem for them financially, by asking them for some detail.

Obvs they haven't replied. They probably sell one eBay item to the EU every 6 months and buy the odd thing from Amazon.de and thinks that makes them an expert.

AmelieTaylor · 07/01/2021 16:03

Buy British 🇬🇧

Is this not an incentive to buy locally and buy from UK sellers on Etsy etc?

Peregrina · 07/01/2021 16:09

What's your point?

It's 'Look at my cut and paste skills'
The EU is all bad.
Leaving is absolutely wonderful so I have to try to prove that the problems it's cause within the first week do not exist.

Clavinova · 07/01/2021 16:11

OchonAgusOchonO
What's your point? I, and plenty of other Irish people, are aware of the current €22 limit. However, that doesn't really help for items about that limit. I ordered something today that cost €68. I went with the EU based supplier as it was cheaper.

Also from the links;

No Changes to VAT on Bigger Orders on Amazon.
For Items Sold by Amazon UK or “fulfilled by” Amazon UK.
Since Brexit, Amazon UK is continuing to charge Irish VAT on most items delivered to Ireland that are Sold by Amazon UK or “fulfilled by” Amazon UK.
At checkout–the basic price of the item should be reduced by the UK VAT amount.

Be aware that there may be customs duty on some items in orders over €150.

Import Duty on Irish Orders at Amazon UK
Even though there was a Brexit deal–it does not rule out customs duty on all items. If a product delivered to Ireland from the UK was not made in the UK–then it could be liable for duty. Any orders with an intrinsic value of €150 or less will NOT be considered for customs duty. Regardless of what is in the order.

I ordered something today that cost €68

How much were the delivery charges from amazon.de. ?

Peregrina · 07/01/2021 16:11

Is this not an incentive to buy locally and buy from UK sellers on Etsy etc?

Yes, but it will take time for British, not UK, sellers to gear up and replace the goods lost. Trying to source raw materials wholly from Great Britain might be difficult. What it's not is the sunlit uplands that the Brexiters promised us would be the immediate bonus.

ListeningQuietly · 07/01/2021 16:12

Is this not an incentive to buy locally and buy from UK sellers on Etsy etc?
Certainly
Where in the UK makes mobile phones?
Where in the UK does rice grow?
Where in the UK does cotton grow?
Where in the UK makes flat screen TVs?
Where in the UK do they mine diamonds and gold?
Where in the UK does chocolate and vanilla grow?

atswim2birds · 07/01/2021 16:13

Is this not an incentive to buy locally and buy from UK sellers on Etsy etc?

I wasn't aware that the UK produced literally everything one could ever want?
Also, that's no use to people wanting to buy from the UK who can't now.

SomewhatBored · 07/01/2021 16:13

@AmelieTaylor

Buy British 🇬🇧

Is this not an incentive to buy locally and buy from UK sellers on Etsy etc?

It's great to buy locally if you can find the items you want.

On sites like eBay and Etsy that deal in one-off, handmade and vintage items, sometimes the thing you want is only sold overseas.

Clavinova · 07/01/2021 16:14

Leaving is absolutely wonderful so I have to try to prove that the problems it's cause within the first week do not exist.

Clearly there are problems within the first week - yesterday I linked to an article with the title UK VAT changes for foreign mail-order sellers create ‘chaos.’

Peregrina · 07/01/2021 16:18

Clearly there are problems within the first week

Clearly nothing. We hold all the cards, remember, they need us more than we need them.

DGRossetti · 07/01/2021 16:21

Someone is going to set up a page to allow people from the UK to take stuff to the EU for one-offs.

Might do it myself.

Clavinova · 07/01/2021 16:30

YoutubeZoom

I don't know how much the customer in Frankfurt ordered from the cycle clothing company in your link but they are removing UK VAT at checkout for EU customers, e.g. £149 top for UK customers is reduced by £24.83 for customers in Germany.

stolengoat.com/

YoutubeZoom · 07/01/2021 16:38

@Clavinova I am not in the EU now, so I take your word for it.

There is definitely a lot of confusion. A few days ago the BBC also wrote about this subject.

The moves follow changes in VAT rules brought in by HM Revenue and Customs on 1 January.

VAT is now being collected at the point of sale rather than at the point of importation.

This essentially means that overseas retailers sending goods to the UK are expected to register for UK VAT and account for it to HMRC if the sale value is less than €150 (£135).

www.bbc.co.uk/news/amp/business-55530721