Tax on goods from EU surely not correct?

[floridapalmtree]

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?

Are you sure it's not a scam?

Here's the breakdown - plus a link to the forms for if you think it's incorrect:

www.gov.uk/goods-sent-from-abroad/tax-and-duty

Yes, but bendy bananas. Which we already had.

@G5000

Not seller's responsibility to figure out what taxes and charges buyer has, buyer is the one importing.

Yes, that is true, but if you don't communicate your terms clearly to your customer, you risk annoying them. Not the best customer experience.

Exactly right, G5000. The law is clear that these are the responsibility of the buyer.

Back in the heady pre-referendum days, I remember telling Brexiters how much it would cost to pay tax and import VAT on EU goods - and no more filling a suitcase up with cheap Spanish fags on holiday and it being perfectly legal as long as they were for personal use - fell on deaf ears. No, it was just 'Project Fear' because Europe love the big important UK too much to impose those nasty import regulations.

Apologies, I think that link is for from outside the EU

But but.... that’s what people voted for.
Having taxes to pay in import is normal. That’s what was happening with products from the USA for example and no one found it surprising.

The FTA that BJ signed doesn't cover ALL goods from the EU which probably explains the difference between your DH and SIL.
Also depends on how the seller actually labelled things....

It's a lot, but it shouldn't be such a surprise.

I presume you weren't charged VAT by the seller?

Brexit shouldn't vastly change the amount of VAT due, it just means that you as the importer rather than the VAT-registered retailer are the one who has to pay it. (There could be a small difference in the amount, if the UK has a higher VAT rate then seller's country.)

But but.... that’s what people voted for.
Having taxes to pay in import is normal. That’s what was happening with products from the USA for example and no one found it surprising
But a lot of us didn't vote for it either at the referendum or for the "Get Brexit Done party" In fact wasn't it only 43% that voted for the GBDP?

The max tariff that can be applied on clothing, if the Free Trade Deal is not applicable (ie if the clothing comes from outside the UE) is 12%.

UK VAT, which applies to all imports, is 20%. If you buy goods with a value of up to £135 the VAT needs to be charged at the checkout. For goods above this value, the seller can decide how to charge VAT. Letting the courier deal with it -and with the customer- is one option.

@Pinkcadillac

The max tariff that can be applied on clothing, if the Free Trade Deal is not applicable (ie if the clothing comes from outside the UE) is 12%.

UK VAT, which applies to all imports, is 20%. If you buy goods with a value of up to £135 the VAT needs to be charged at the checkout. For goods above this value, the seller can decide how to charge VAT. Letting the courier deal with it -and with the customer- is one option.

The 12% tariff would only apply to some commodity codes, not to all clothing

Are you sure it's not a scam

Yup, Brexit is the biggest scam. Some fell for it hook line and sinker and we’ve all now got to pay the price

In defence of sellers, as an Etsy seller myself, it's impossible to know the rules in every country in the world that we are asked to sell to. When I buy items, I see it as my responsibility to check the rules they are importing to.

Somethingmavelous do you mean an EORI? If so, HMRC have said that this is for proper exporters - not those of us who sell small quantities by post to other countries. Someone on the Etsy forums has had a lot of exchanges with HMRC, establishing the requirements. As far as I have established, we can carry on as before, with CN22s only.

@Pinkcadillac

The max tariff that can be applied on clothing, if the Free Trade Deal is not applicable (ie if the clothing comes from outside the UE) is 12%.

UK VAT, which applies to all imports, is 20%. If you buy goods with a value of up to £135 the VAT needs to be charged at the checkout. For goods above this value, the seller can decide how to charge VAT. Letting the courier deal with it -and with the customer- is one option.

Sorry - this in not right. I'll explain again.

UK VAT, which applies to all imports, is 20%. If you buy goods with a value of up to £135 the VAT needs to be charged at the checkout. For goods above this value, the seller can choose to facilitate the transaction by letting the customer know that there will be a VAT charge or can let the courier deal with it -and with the customer

@Somethingmavelous

I have a tiny creative business selling online, I can't sell abroad now - including Northern Ireland/USA/Europe/Anywhere because the gov website where I need to register for exports keeps crashing so I can't get an export licence - I don't know it's it's worth the paperwork even if I could get a licence I voted remain

Most courier companies deal with the tax for you. You just need an EORI number, is that what you're having trouble getting?

Biggest nightmare for me will be the new rules regarding travel with dogs to Ireland. Its going to cost me a hell of a lot.

No more champagne then.

@RandomLondoner

I presume you weren't charged VAT by the seller?

Brexit shouldn't vastly change the amount of VAT due, it just means that you as the importer rather than the VAT-registered retailer are the one who has to pay it. (There could be a small difference in the amount, if the UK has a higher VAT rate then seller's country.)

Isn't this incorrect? I thought the Brexit government had decided sellers overseas had to register for VAT and pay it to them? Hence sellers voting with their feet?

If he put the order in on the 29th, was it processed on the other side then or was it after the 31st? That could be why it's applying to one order and not the other. Good luck to you all with this though.

@Wrinkles That's for goods below £135 in value

"You have to pay VAT (20%) on everything you buy from the EU. The seller should have made that clear at the checkout"

Not really. We've always had to pay VAT on purchases imported from non-EU countries and it's something that we are expected to know ourselves. Different countries have different taxes of course that their citizens also have to pay. Imagine having an internet business and for every invoice you raise you have to list all the taxes for all of the countries that your buyers might have to pay?

It's fine though, I'm sure all the Brexiteers knew this would happen when they voted to leave.

We Hold All the Cards

@WrinklesShminkles do you know where there is a written source for that, about EU sellers having to register for VAT here? Because I read that too, but can't find .gov confirmation of it. EU sellers are saying they are being advised of it, and therefore no longer want to sell to the UK as it's so much more complicated: that the British way is different to how VAT is collected and remitted when they sell to other countries outside the EU.

We took back control ~of our ability not to pay massive taxes~ !