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VAT nightmare incoming


Vlamgat9

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18 hours ago, Black Knight said:

Essentially and basically, orders from companies in GB to NI - no change from today until 31st of March.

After that date the GB company has to put a customs declaration on the parcel/package

But what we don't know is if my order from Kingkit, Hannants or Airfix will attract a customs duty or different VAT when it enters NI

Will the GB company be treating my order as if it was going to Oz, ie they claim back the VAT? then I pay VAT before its handed over to me?

Fortunately I have relatives in Scotland so I may get my things delivered to them and they can forward them on

 

 

 

However they seem to have that covered too as I read on the .gov website yesterday that gifts sent by individuals to NI valued below a £39 threshold will have to pay VAT too.

 

Duncan B

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Well I may get an idea soon.

I ordered a phone battery from an ebay seller in Spain on 19.10.20, who was shipping the item from China. Arrival estimates were between 6 and 29 December. It ain't here yet but the ports have a backlog. I will raise a case after 7 days, but it will be interesting. An EU based seller during the Transition period taking my cash for a 3rd country origin item. If I get hit (assuming it turns up) it will make an interesting test case for a refund.

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36 minutes ago, Broadway said:

Tried a low value ebay item from China - no VAT added in the checkout, so a potential £8 fee from the post office + the VAT (no I did not buy).

 

For the process to work there need to be VAT Paid codes on the packets and a system to pay this tax to the government and I don't think this system is actually set up yet.

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43 minutes ago, Tim R-T-C said:

 

For the process to work there need to be VAT Paid codes on the packets and a system to pay this tax to the government and I don't think this system is actually set up yet.

ANd no warning at the checkout .....

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9 hours ago, Duncan B said:

However they seem to have that covered too as I read on the .gov website yesterday that gifts sent by individuals to NI valued below a £39 threshold will have to pay VAT too.

oh, sh......ugar!

They can bring the stuff over with them, if the authorities will ever allow them to travel. They're being held captive in a wee town called Brora

 

I have a large value order coming from Airfix and a large value order from Hannants, both due delivery this coming week.

It'll be interesting to see what happens.

The Airfix one is coming via DPD who has already declared they are not delivering GB to NI, but they are according to their local office

The Hannants order will come via Royal Mail

Also due anytime are a few small items from China

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5 hours ago, Broadway said:

ANd no warning at the checkout .....

i noticed on ebay that European sellers now had a "=20% VAT"  added to the listings (automatically I assume)  since the 1st.

On 01/01/2021 at 15:18, Tim R-T-C said:

I suspect a lot of people will be surprised when their £5 cheapie orders from Wish or eBay cost a lot more just to collect.

That said,  given the sheer volume of cheap small items,   and then  amount of RM  employees to deal with this,  and the resulting fallout RM employees will be asked to deal with (how many overworked posties are going to to get an earful )  and then the sheer unpopularity of this for what in the wider scheme is small change.   

 

Like the phone battery, say it cost £5, the VAT is £1,   if you then ask £8 on that, (which is probably what you could have bought a battery for from a UK seller) how many people are going to just go, NO,  refuse, and then you have no VAT and RM wanting to know where their £8 is? 

it will be a farce, and the sort of thing the Daily Mail and social media will go crazy  about,  a £1 item with 20P VAT and £8  charge? 

you can almost see the headlines now.......

 

I suspect for a while, until they system gets fine tuned, it will be ignore for now and business as usual.   

 

Also, looking at many listings on ebay, a lot of Chinese sounding sellers often have a UK address listed, so I'm not how that works for ebay,  does that then count as a UK sale, and not matter where the good are actually shipped from?

 

IIRC , I think the low value waiver of £15 amount actually dates back a long time,  I was reading an old model mag from the late 70's and it was £15 then....  it just never got raised.  

 

Anyway,  be interesting to see how this plays out in practice.   

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Yep looking for some items in the UK on E-bay to check the VAT and the UK is now a dead DODO for me as well......it is a pity as I used to buy most things on e-bay and individual shops.......BREXIT is a fact.....
For instance in case of a 23 pound item with 12 pounds of shipping costs I have to pay an additional 9 pounds of import fee/tax via the world wide shipping program..not good ....

And this wasn’t a cheapo item but a normal priced item ...

 

cheers, Jan

 

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24 minutes ago, RAF4EVER said:

Just a question,does this also include Magazines ,as I have 2 magazines on subscription from the UK?

yes. Magazines are / were Zero rated VAT in the UK and you should have got them at the UK price but that might change now. 

Zero rated is different to VAT exempt

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On 12/26/2020 at 9:44 PM, Graham Boak said:

I am not privy to any part of the massive volume covering the trade deal.  However we have been assured by our leader that there will be no additional taxes or tariffs, which suggests it will make no difference to the trade in model kits.  However it has been pointed out (separately) that there will be a considerable amount of additional paperwork, and I presume that costs incurred by this will have to be recovered by the trader somehow.  

 

 

while there may not be any extra tariffs applied per se, the small value gift exemption has been done away with, and new rules brought in re overseas sellers* being responsible for applying and collecting UK VAT on orders <= 135 GBP.  

* in the case of online marketplaces like Amazon, eBay  the marketplace is deemed to be the seller for VAT purposes - if I have understood correctly

 

Seems utterly the wrong way round to me, logically taxes should be based on sellers location not the customers location !

 

 

Edited by IanHx
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I've just been on ebay to look for supplies form my leatherwork.

I was initially checking on buying again from my previous suppliers in China. From them I got certain things at certain prices but when I go for the ebay option 'buy again' I've noticed that the price jumps up by about 15% to 22%, it varies depending on the seller.

And GB, mainly England, sellers which I've bought leather work supplies from now have, 'Does not post to Northern Ireland' in their postage prices section.

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12 hours ago, Tim R-T-C said:

 

For the process to work there need to be VAT Paid codes on the packets and a system to pay this tax to the government and I don't think this system is actually set up yet.

That has been my main Q to HMRC all along, in three separate online chats to them no one could give me an answer. The Customs section said it's a VAT question, the VAT section said it's a customs/import question and back again.

As I do online label printing with Japan Post I can enter a tax code and special instructions on the label, both for standard and recorded small parcels. I wonder if that will work...

J

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13 hours ago, Troy Smith said:

IIRC , I think the low value waiver of £15 amount actually dates back a long time,  I was reading an old model mag from the late 70's and it was £15 then....  it just never got raised.  

IIRC it was reduced as it originally didn't include shipping

Edited by Broadway
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10 hours ago, Black Knight said:

 

And GB, mainly England, sellers which I've bought leather work supplies from now have, 'Does not post to Northern Ireland' in their postage prices section.

It's due to the total confusion and the extra costs being incurred I bet. I have a regular flow of orders from NI (used to have from Ireland too) and am loathed to stop selling to another part of the UK but on the other hand I don't want to be fined (or worse, have the VAT Man visit and all that that entails) for failing to comply with regulations that are currently unclear and I just can't get my head around at the moment.

I hope your rUK suppliers have only temporarily suspended sales to NI and this confusion gets clarified very soon or I'll be joining them :(

 

I would be interested to hear how other Model Traders based in the UK are currently dealing with or intend on dealing with the 'border' down the Irish Sea.

 

Duncan B

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Just a little observation I tried to purchase two decal sheets from CTA but when they tried  to post them the Russian Post office refused because of the uncertainty with Royal Mail. 

 

It would appear everything is going to be up in the air for the first couple of months & as we await some cast iron directives from HMG some will pay duty some won't which is going to annoy a lot people buying & selling. 

 

Hopefully things will improve & issues are ironed out for everyone 

 

Eamonn 

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23 hours ago, Black Knight said:

yes. Magazines are / were Zero rated VAT in the UK and you should have got them at the UK price but that might change now. 

Zero rated is different to VAT exempt

OK, Thank you,sorry for the late answer,will see what happens when I renew in May.

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I noticed at the weekend that the UK press has started to pick this up.

 

There was an article in the Times on Saturday about small European suppliers stopping sending to the UK because of the tax situation. The article referred in particular to Scandi slippers and Belgian artisan brewers so it's not just us modellers who are impacted.

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On 1/2/2021 at 9:21 PM, janneman36 said:

Yep looking for some items in the UK on E-bay to check the VAT and the UK is now a dead DODO for me as well......it is a pity as I used to buy most things on e-bay and individual shops.......BREXIT is a fact.....
For instance in case of a 23 pound item with 12 pounds of shipping costs I have to pay an additional 9 pounds of import fee/tax via the world wide shipping program..not good ....

And this wasn’t a cheapo item but a normal priced item ...

 

cheers, Jan

 

 

Did the sellers offer you a net price, with no local VAT charged ? They should do it, since you'd be paying VAT through Ebay to the Country of destination with this scheme.

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