Tax!

[planningaheadtoday]

I've just put through my usual order of £9.66 from overseas. I was a bit hazy as to how the new tax requirements would affect the UK but, I've just had to pay out an extra £2.10 plus shipping, plus transaction fee on something that normally costs me just shipping and transaction fee + item.

Things are going to be that bit more expensive going forward. What I failed to realise is people buying from abroad will now be charged the tax when we order and not when we import because businesses now have to register to sell to us.
I always kept my imports below £15 to legally avoid paying tax, but it would appear it's now payable regardless.

I should add, I'm ordering from outside the EU so I'd assumed it would remain the same as before.

If your ordering from outside the EU it might not necessarily be Brexit related?

I think this may explain the change - it's from the advice section of an accountancy firm's website and dates from early December 2020, hence the phrase "at the moment...".

"Trade with non-EU countries will also be affected by changes in duties and excise. At the moment, the UK continues to be covered by the EU’s trade agreements with non-EU countries. Those agreements will no longer apply in 2021, so new duties and excise arrangements will also apply to transactions with these countries. The actual effect for duties and excise will depend on World Trade Organisation arrangements or deals with individual countries arranged under the trade agreement continuity programme."

BTW, the UK government website is no use at the moment. A text box tells you:
"The Brexit transition period has ended and new rules on tax and customs on goods sent from abroad now apply. This page is currently out of date."

www.gov.uk/goods-sent-from-abroad

I suppose it will be updated at some point.

This page is currently out of date.

Good to see our Government is on the board. It bodes well for being 'World Beating'.

UK has replaced around 10% of around 750 agreements which we were covered while in the EU and it looks like you ordered from a country which are not covered by such an agreement and all trade is done under WTO. That explains additional tax.

The £15 import VAT exemption has been removed.
www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk

Thank you all, that explains it. I was hoping it was a mistake. The extra tax will really mount up over the year.

Yesterday I ordered two items from eBay - one from Hong Kong and one from Poland. eBay added 20% additional tax to both items at checkout! It hadn't crossed my mind at all many things would be 20% more expensive. I don't understand why a product from Hong Kong had additional tax either.

Roses I assume that its beacause we dont have a trade agreement in place with HK.
Previously your order would be sent under EU negotiated trade agreements 🤷‍♀️

Just checked this. Similar VAT changes for the EU;

From 1 January 2021 the existing VAT exemption for goods up to 22 € will disappear.

ec.europa.eu/taxation_customs/news/new-form-customs-declaration-low-value-consignments_en

Although it looks as though the new rules have been postponed for six months in the EU because of coronavirus;

ec.europa.eu/taxation_customs/news/taxation-commission-proposes-postponement-taxation-rules-due-coronavirus-crisis_en

New EU Customs Regulation Ends VAT Exemption for under €22 Parcels.

Following an amendment to Regulation (EU) 2015/2446 on EU customs rules, from [1 July 2021] it will be possible to declare goods up to €150 with a simplified customs declaration. The existing VAT exemption for goods up to 22 € will thus be abolished - the popular shipments from China with the label "Gift, 10$" will then be a thing of the past.

www.elektormagazine.com/news/new-eu-customs-regulation-ends-vat-exemption-for-under-22-parcels

Ah, so we're still following the same rules as the EU.

Only bringing ours into force earlier than the EU.

Also as from 1 January 2021 the UK has brought into force a new £135 VAT-at-point-of sale regime, identical to the EU’s €150 scheme.

Jumped the gun there Remainers. Didn’t you?

But Leavers wanted to make their own laws, not implement EU ones early.

Straw Man...