[blau3er]

Tried Googling and lost in a minefield of complex articles!

Simple question - previously I would buy car parts on ebay.de and make a decent saving (even including postage) compared with UK sellers.

Since Brexit, what are the salient changes here? Do I now have to pay an additional 20% VAT (plus no doubt some kind of admin fee to the carrier) before the item would be released to me?

Apologies if this is a stupid question, but hoping someone might have a simple explanation for me?

[330XDave]

I thought the fact we got a deal stopped all that.

[335dX]

Simple answer is yes.

A friend of mine (who is registered as a business seller on eBay,) told me that from 01.01.21 eBay is automatically adding 20% to all his listings and there’s no way around it. By his own admission now making him less competitive for his items compared to the uk.

[moonshine]

There are plenty of examples on Twitter of GB/EU and EU/GB sales attracting large customs and VAT charges along with Handling charges with cash on delivery demands as a result of the changes from 1st January.

I would plan for additional charges, and be happy if there are none

Examples (appreciate these are not exactly post brexit EU/GB deliveries - but examples none the less)

[six]

Presumably the listing includes local sales tax. Would this now be deducted for your order as it’s leaving the EU? Was just thinking that might give some leeway for paying UK tax duty if charged on arrival. Not sure if eBay seller would up for / able to do this though.

[Techno 9000]

That's my understanding.
Local sales tax (19% in Germany)not added, then UK sales tax added instead (20 % VAT).

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

[Goneinsixtyseconds]

I think most people, including me, misunderstand what the trade deal is supposed to mean. I wasn’t expecting taxes on various things to be applied.

I note that quite a number of retailers have just stopped selling to the EU and vice versa.

[bytejunkie]

this isnt the brexit we didnt really want...

i saw 90 quids worth of motorcycle parts gain 21 quid in tax the other day. im guessing its VAT as per the message above.

[Ennoch]

If you've ever bought things from elsewhere in the world then you realise how expensive getting stuff in and out of countries is, and how much of a godsend the EU was for its freedom of movement and no charges. Unfortunately most people either didn't realise or didn't care because it wouldn't impact them. It doesn't help when the courier companies add on handling charges that are vastly in excess of the parcel value or duty charges.

[moonshine]

Also Rules of Origin mean potential for import and export tarrifs

https://www.theguardian.com/business...e_iOSApp_Other

Percy Pig has emerged as one of the first casualties of Brexit red tape, with Marks & Spencer warning that the famous pink sweets it sells in its Irish stores could be hit with new import taxes.

The bestselling sweets are among the more than 2,000 products sold in its food halls affected by the "rules of origin" regulations set out in the trade deal struck with the EU. The rules decide whether import taxes, called tariffs, must be paid based on where the product's ingredients come from and it has been manufactured.

Marks & Spencer hit by clothing sales slump in key Christmas period

Steve Rowe, the chief executive of M&S, gave the example of its bestselling Percy Pig sweets, which are manufactured in Germany and brought to the UK before being re-exported to Ireland – a journey that would now be subject to import taxes.

[blau3er]

Thanks for the responses so far guys!

An interesting topic and about as clear as mud for your average member of “Joe Public” trying to understand the gov website on the matter.

I don’t want to make this political, but..... what a shambles!!

[saltyamigo]

Its not just EU purchases that are affected if you order from the likes of Aliexpress there is now 20% tax automatically added on small orders.

[sahajesh]

Originally Posted by 330XDave

I thought the fact we got a deal stopped all that.

[pmgreenwood]

Originally Posted by moonshine

Also Rules of Origin mean potential for import and export tarrifs

https://www.theguardian.com/business...e_iOSApp_Other

Percy Pig has emerged as one of the first casualties of Brexit red tape, with Marks & Spencer warning that the famous pink sweets it sells in its Irish stores could be hit with new import taxes.

The bestselling sweets are among the more than 2,000 products sold in its food halls affected by the "rules of origin" regulations set out in the trade deal struck with the EU. The rules decide whether import taxes, called tariffs, must be paid based on where the product's ingredients come from and it has been manufactured.

Marks & Spencer hit by clothing sales slump in key Christmas period

Steve Rowe, the chief executive of M&S, gave the example of its bestselling Percy Pig sweets, which are manufactured in Germany and brought to the UK before being re-exported to Ireland – a journey that would now be subject to import taxes.

Yes but one would hope it is not beyond the ability of M&S to send Germany product for Irish stores (both Northern and Southern) direct with no passage through mainland UK

[moonshine]

A good article here on the complexities of VAT and import duties associated with EU/UK and UK/EU sales and the implications of UK warehousing of EU goods before being onward sent to IRE (or other EU countries) here https://www.rte.ie/news/2021/0108/11...nnelly-brexit/

“Because the UK is no longer part of the EU's VAT area, there are two new spanners in the works.

Under UK rules, if the value of the consignment is over €150 (£135) then what is called "import VAT" applies, and it must be paid by the buyer at the UK post office when he or she picks up the posters.

With the UK out of the EU VAT area, and now a third country, it means the relatively straightforward model has changed both for the consumer and the seller.

"The VAT hits when the product reaches the port," said Brian Keegan, director of public affairs at Chartered Accountants Ireland. "This is what's causing the disruption. It's not necessarily that there's an additional VAT charge but it's being handled differently."

So if you buy from an EU seller for a product >€150, it would appear you (as the purchaser) will need to pay UK VAT (usually accompanied by a substantial courier handling charge) prior to delivery.

[blau3er]

Originally Posted by moonshine

So if you buy from an EU seller for a product >€150, it would appear you (as the purchaser) will need to pay UK VAT (usually accompanied by a substantial courier handling charge) prior to delivery.

As I thought, sadly!

EU sellers are also not going to take VAT off their products at their end either!!

[speedski]

You will pay the retailer you buy from in the EU, not the courier firm as long as they are compliant and correctly registered.

There have been problems with companies collecting that tax but declaring on the import paperwork that the duties and taxes onus is on the recipient - this is leading to people getting bills for a second set of tax payments.

This will get sorted, but you have to appreciate most of this came with a few weeks notice at best - hence why some ecommerce shippers and platforms are struggling to get it right.

As for 'substantial' courier charges. You can choose to self clear. Pretty sure you'll only do it once when you realise how much time it takes and the amount of paperwork and knowledge to do versus that 'substantial' charge the couriers are taking.

EU is bringing in IOSS later this year

Unlike today, when the import scheme is used, the seller will charge and collect the VAT at the point of sale to EU customers and declare and pay that VAT globally to the Member State of identification in the OSS. These goods will then benefit from a VAT exemption upon importation, allowing a fast release at customs.

The introduction of the import scheme goes hand in hand with the abolition of the current VAT exemption for goods in small consignment of a value of up to EUR 22. This is also in line with the commitment to apply the destination principle for VAT.

Basically ecommerce is going through a tax evolution where, they claim, the playing field will be evened out to reduce the flooding of freight into EU from Asia at nominal margins...

Overall the days of getting lucky and missing a duties and tax bill on a consignment, or marking it as £1 value are coming to an end - the shipper has become obligated to be compliant. And therefore goods are going to get more expensive than we're used to.

[strike4A]

Originally Posted by blau3er

As I thought, sadly!

EU sellers are also not going to take VAT off their products at their end either!!

I had this experience recently. Ordered some electronics (well above the €150/£135 threshold) from a French retailer and noticed on the invoice it had French TVA @ 20% added which is French VAT. Queried it with them and they have now taken it off. Their site hadn't been updated to exclude UK from EU yet but now it has anyone from UK who orders from them will be VAT/TVA free. Waiting to see how the courier this end will add UK VAT. Part of me hoping that in these teething times I might slip through the net! If there are any other handling charges I will be royally pissed off.

[speedski]

Originally Posted by strike4A

I had this experience recently. Ordered some electronics (well above the €150/£135 threshold) from a French retailer and noticed on the invoice it had French TVA @ 20% added which is French VAT. Queried it with them and they have now taken it off. Their site hadn't been updated to exclude UK from EU yet but now it has anyone from UK who orders from them will be VAT/TVA free. Waiting to see how the courier this end will add UK VAT. Part of me hoping that in these teething times I might slip through the net! If there are any other handling charges I will be royally pissed off.

There will be a handling charge.

Clearance is electronic, couriers are asked to pull and present certain packages when miss or under declaration is considered - there will be a fee for the service the courier performs on your behalf for clearance (as above you can do it yourself but its a right royal PITA).

Not aimed at you, but the courier industry is taking a beating (DPD suspended the entire EU road network into the UK for example) already over this because no-one during the process put this on the side of a bus

[strike4A]

Originally Posted by speedski

There will be a handling charge.

Clearance is electronic, couriers are asked to pull and present certain packages when miss or under declaration is considered - there will be a fee for the service the courier performs on your behalf for clearance (as above you can do it yourself but its a right royal PITA).

Not aimed at you, but the courier industry is taking a beating (DPD suspended the entire EU road network into the UK for example) already over this because no-one during the process put this on the side of a bus

Ordered something else from Republic of Ireland before Christmas. It's being sent via DPD but has been stuck in Northern Ireland for past 10 days due to customs checks. Utter madness.

[blau3er]

Glad I asked the question, but this is an utter shambles!

Courier prices have also sky rocketed, probably not surprisingly given some of the comments on here so far..... I shipped a set of brake pads to France and ordinarily the cost would be under £15 including insurance with Parcel Force, this time it was £35 and there were 5 (yes 5!!!) copies of customs paperwork to complete and I was expected to know the customs code of the products I was sending (WTF)

Madness!

[speedski]

Originally Posted by blau3er

Glad I asked the question, but this is an utter shambles!

Courier prices have also sky rocketed, probably not surprisingly given some of the comments on here so far..... I shipped a set of brake pads to France and ordinarily the cost would be under £15 including insurance with Parcel Force, this time it was £35 and there were 5 (yes 5!!!) copies of customs paperwork to complete and I was expected to know the customs code of the products I was sending (WTF)

Madness!

Yep, that's just the way its gone - there's so little capacity in the market right now that prices have gone up significantly - Parcel Force outsource a lot of stuff for delivery to markets they don't directly serve - or when their network can't cope.

Outside of the EU 5 copies is common (export location, customs authority, import location, copy left on the package = 1 spare in case of inspection needs).

In saying that a lot of the couriers have converted the paperwork to digital - those asking for physical copies are likely to be reselling someone else (and as a result taking that 1 spare copy off the stack of 5).

Those ecommerce platforms/sellers doing well are those who are consolidating imports/exports before moving in and out of the EU - If Autodoc are still shipping from mainland Europe and not from within the UK will really struggle to sell to UK given the cost to import/export.

Some predicted the possible - Amazon started doing export/import paperwork on UK destined packages quite a while before Brexit even did a deal - they hedged their bets well...as usual lol