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VAT nightmare incoming


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7 hours ago, alt-92 said:

Having received several deliveries from multiple countries including JP - Most carriers already do.

Either on the stickers or documents stuck in the sleeve.

 

Most customers order standard, untracked delivery and the CN22 customs sticker Japan Post issues for that purpose doesn't have anything on it to mark anything about tax/VAT.

J

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19 hours ago, Skodadriver said:

So how does that work in practice?

 

Are the small one-man decal or P/E businesses that we depend on still able and/or willing to sell directly to modellers in New Zealand?

I'm sure that smaller consignments will still arrive happily and safely.

Here, our government is more interested in gathering tax from the larger revenue streams (amazon, etc) and also electronic sources (tv, video, etc) as they are easier to control.

There is currently a referendum happening to see if we will make marijuana legal....... which will make another tax revenue stream available for the cash-strapped politicians. 

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It actually looks like this was an EU initiative that has been taken up by the UK.

https://ec.europa.eu/taxation_customs/business/vat/modernising-vat-cross-border-ecommerce_en

I think many of the small problems will arise when unskilled tax and customs officers have to make decisions themselves. That's already happening as evidenced by the problems @JeffreyK is having finding the right person to  ask questions of.

As a small exporter to the UK we are interested but we will wait and see. We are happy to do the right thing but our volumes are not sufficient to justify any additional expenditure.

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On 18/10/2020 at 20:48, roym said:

Genuine question at the end of this rambling...

 

its all well and good to say this will level the playing field but thats only when the items are available in the UK. I can't see the likes of the cottage industry who generate most or all sales from direct sale on their websites bothering to sell to the UK anymore. Thinking of Max Decals, Caracal, Starfighter decals, Wolfpak decals etc, and then the likes of Special Hobby, Eduard etc, and that's before we get into photo etch or resin. Who in the UK sells a dedicated photo etch for Titanic or decals for USS Nimitz that are NOT Gold Medal Models or Starfighter? Who besides Max Decals does Irish Air Corps Walrus or PC-9 decals? I know some companies have deals with the likes of Hannants but I hope you get my drift. I see the point about kits but what when the online retailer is the ONLY source for the item? E.g with Aeroclub gone are SAC the only source of metal undercarriage parts? If this ends up Piddling off the EU and they decide to reciprocate can the likes of Flightpath continue to sell to the EU? And lastly,  is this the end of Britmodellers outside the UK selling our surplus kits and decals to britmodellers in the UK on the Britmodeller buy and sell section? 

 

(Sorry had to laugh when I saw the term "post brexit plans" ... up there with "military intelligence"...)

 

Possibly this thread is over-complicating things? And I speak as keen 'Remainer' - running for cover!

 

As I understand it from next January [31st I think], sales to EU countries from the UK will be exports, just as in shipping stuff to the USA, Canada etc.  We will simply deduct the UK VAT from the selling price and the end-user will pay VAT at their current rate if the parcel is unlucky enough to get singled out. If it doesn't then they are 'quids in', as we say here.

 

We ship without problems to vitually every country - though I note our North Korean orders are down lately!!! Never a problem. Only been doing it for 46 years though, so there may alway be a first time for a snarl-up.

 

Hope this helps

 

David Parkins

Flightpath,

www.djparkins.com

 

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2 hours ago, djparkins said:

 

Possibly this thread is over-complicating things? And I speak as keen 'Remainer' - running for cover!

 

As I understand it from next January [31st I think], sales to EU countries from the UK will be exports, just as in shipping stuff to the USA, Canada etc.  We will simply deduct the UK VAT from the selling price and the end-user will pay VAT at their current rate if the parcel is unlucky enough to get singled out. If it doesn't then they are 'quids in', as we say here.

 

We ship without problems to vitually every country - though I note our North Korean orders are down lately!!! Never a problem. Only been doing it for 46 years though, so there may alway be a first time for a snarl-up.

 

Hope this helps

 

David Parkins

Flightpath,

www.djparkins.com

 

 

As a fellow Remainer I'm afraid I don't think your post really answers the point that is troubling most of us, certainly me.

 

What is the position about direct-sell goods coming INTO the UK?  If the seller uses a platform, most obviously eBay, the platform will deal with VAT matters but many small manufacturers only sell directly. My understanding is that a foreign direct seller is required to register with HMRC and account for UK VAT. In my area of modelling interest, civil airliners, that would seem to affect a seller like Authentic Airliners, a small German-based company (actually a retired Lufthansa pilot and a couple of family members) making expensive, high quality, limited run 1/144 resin kits. They only sell directly and my concern is that they will find the new regime so much bother they will stop selling to the UK. There are many other similar examples. William Shatner kicked the whole thing off when he announced that because of the costs involved his Canadian online store would stop selling to the UK next January and asked “Why should I do the job of a foreign government whom I have no connection with?”

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1 hour ago, Skodadriver said:

 

As a fellow Remainer I'm afraid I don't think your post really answers the point that is troubling most of us, certainly me.

 

What is the position about direct-sell goods coming INTO the UK?  If the seller uses a platform, most obviously eBay, the platform will deal with VAT matters but many small manufacturers only sell directly. My understanding is that a foreign direct seller is required to register with HMRC and account for UK VAT. In my area of modelling interest, civil airliners, that would seem to affect a seller like Authentic Airliners, a small German-based company (actually a retired Lufthansa pilot and a couple of family members) making expensive, high quality, limited run 1/144 resin kits. They only sell directly and my concern is that they will find the new regime so much bother they will stop selling to the UK. There are many other similar examples. William Shatner kicked the whole thing off when he announced that because of the costs involved his Canadian online store would stop selling to the UK next January and asked “Why should I do the job of a foreign government whom I have no connection with?”

 

One of the questions the poster asked was if companies like Flightpath would bother to ship to EU countries. I was simply explaining that we will. I was referring to no other part of the post.

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11 hours ago, djparkins said:

 

Possibly this thread is over-complicating things? And I speak as keen 'Remainer' - running for cover!

 

As I understand it from next January [31st I think], sales to EU countries from the UK will be exports, just as in shipping stuff to the USA, Canada etc.  We will simply deduct the UK VAT from the selling price and the end-user will pay VAT at their current rate if the parcel is unlucky enough to get singled out. If it doesn't then they are 'quids in', as we say here.

 

We ship without problems to vitually every country - though I note our North Korean orders are down lately!!! Never a problem. Only been doing it for 46 years though, so there may alway be a first time for a snarl-up.

 

Hope this helps

 

David Parkins

Flightpath,

www.djparkins.com

 

Thanks for that and am glad I can still order from you in the new-year! I was imagining what might happen if the EU reciprocated and asked you to deduct Vat on shipping orders to (for example ) ROI. All theoretical mind...

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