VAT charges to EU states

[cmorley]

But this is actually a good thing in this case, as I won't get hit with £8 RoyalFail charge as well.

How does this work then, is there a special code on the package or something to tell them not to charge (again) at the border?

[exxos]

How does this work then, is there a special code on the package or something to tell them not to charge (again) at the border?

I've no idea how it works, will post back if get charged again.. If there are 2 charges on the same package that would mean government will be charging tax twice on the same thing :roll:

EDIT:

I do pay mouser fees up front (20% tax) and I don't get charged again with DHL when package enters the UK... But that system has been in place for a couple years now..

EDIT2:

Not saying I understand any of this.. Though currently the courier collects taxes anyway, though in case of mouser, I am not sure who they pay tax to, if its the UK government direct, or more logically, it would just go to the courier as they are dealing with taxes anyway.

So if I buy a package from USA "as normal", say DHL, I would get charged 20% (by them) and £20 for the privilege of them sending me the bill. So I pay tax to them..

In case of mouser and DHL.. I pay taxes with shipping costs, so I assume mouser simply pass this over to DHL, so they have the taxes up front (still from me) instead of having to send me a bill which slows everything down.. Only in this case I wouldn't get charged the £20 for sending me the bill.

EDIT3:

This is what I have been doing...

DDP – Delivered Duty Paid (named place of destination)
Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination including import duties and taxes. The seller is not responsible for unloading. This term is often used in place of the non-Incoterm "Free In Store (FIS)". This term places the maximum obligations on the seller and minimum obligations on the buyer. No risk or responsibility is transferred to the buyer until delivery of the goods at the named place of destination.

The most important consideration for DDP terms is that the seller is responsible for clearing the goods through customs in the buyer's country, including both the duties and taxes, and obtaining the necessary authorisations and registrations from the authorities in that country. Unless the rules and regulations in the buyer's country are very well understood DDP terms can be a very big risk, both in terms of delays and in unforeseen extra costs, and should be used with caution.

[stephen_usher]

But this is actually a good thing in this case, as I won't get hit with £8 RoyalFail charge as well.

How does this work then, is there a special code on the package or something to tell them not to charge (again) at the border?

Apparently the sender puts their VAT code on the outside of the packaging.

[exxos]

Looking at the link from before...

So it does sound like under £135 value, the overseas (outside of UK) have to register a VAT number.. that is madness..

Goods that are outside of the UK at the point of sale
The online marketplace must work out the consignment value of the goods by deciding their ‘intrinsic value’, this is the price the goods were sold for, not including:

any transport or insurance costs, unless they are included in the price and not separately shown on the invoice
any other identifiable taxes and charges
Unless sent individually, the seller must add the individual values of all items in a consignment together to get the total value of the consignment.

If the seller makes changes to the value of the consignment so that its total value goes above £135 they may be liable for import VAT and Customs Duty, and have to adjust the VAT already accounted for at the point of sale.

Low value consignment relief (LVCR), which is an import VAT exemption for goods valued at £15 or less, has been removed in:

Great Britain for goods imported from outside the UK
Northern Ireland for goods ordered remotely that are imported from outside the UK and EU
Consignments valued at £135 or less
The online marketplace must charge and account for VAT at the point of sale, unless the consignment is a business to business sale and the customer has given their UK VAT registration number.

To charge and account for VAT the online marketplace will need to:

know the precise nature of the goods to find out the correct rate of VAT to charge
register for VAT - online marketplaces that are already registered for VAT do not need to re-register
keep records of the goods sold, and make sure they get accurate information to apply the correct VAT treatment to the goods

According to JLC..

0~135GBP (VAT collected by JLCPCB)
>135GBP (VAT collected by local custom)

That doesn't make sense either.. as if JLC had to register UK VAT, why a cut-off limit, or why bother with registering in the first place.. <£135 RM collect VAT anyway..

All seems way to over complicated and unnecessary IMO.

[tzok]

They seem to treat transactions 0~135GBP as retail transactions, and >135GBP as wholesale transactions. The idea was - if it is a small buy, by an individual customer, then VAT is collected and paid by the seller (buyer pays a brutto/gross price), while when it is a big buy, by a company, then the buyer is responsible for paying VAT (pays netto/net price to the seller).

[exxos]

Someone suggested looking at lotharek's news the other day but cannot see the post now.. But he is asking for VAT people which I am not.. I really don't want anymore paperwork dealing with VAT.. The tax return is enough of a headache as the taxoffice should be shut down for not being fit for purpose in the first place .. Dont get me started on how useless they are.. :roll:

Anyway, I am not really sure what the UK market would be for his products. In reverse if he sold my stuff in the EU, it may help some people.. but its back to buying stock again.. I can't give discount on stuff when I don't make much anyway, and I would assume lotharek would have a similar problem. I don't see how it would really work.

I don't think there is any simple solution. Though if the tax charges are as they always been, then nothing would really change anyway. Worst case is EU people have to pay a bit more for their goods from the UK I guess.

The only changes I have seen in terms of selling, is customs paper work which really just quotes the value of goods.. As long as it doesn't get into more drama that that, then its not to bad my end. Though overall, I want to create hardware, not deal with politics, taxes and paperwork drama daily.

[tzok]

I don't think any business who does not have a VAT number will be able to sell to EU to individual customers.
Lotharek sold a lot of stuff to UK, as for Polish realities, his prices are very high.

[exxos]

If UK government force VAT stuff on UK businesses to sell to EU, then I would just have to stop selling to EU, as I don't want the hassle of anymore paperwork. I think pretty much all small UK businesses would just go bankrupt in such a case. Currently VAT registration is only a requirement if you turn over more than £85,000.

[sporniket]

Just a little post to say that I received my last order. With a declared value of 10£ on the sticker for customs declaration, the French post delivered the parcel without fuss, no extra to pay.

[exxos]

Just a little post to say that I received my last order. With a declared value of 10£ on the sticker for customs declaration, the French post delivered the parcel without fuss, no extra to pay.

Awesome.. Yeah ironically a lot of orders end up being £10 or less....