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Re: VAT charges to EU states
Posted: 24 Jan 2021 12:29
by exxos
When I buy from aliexpress goods always had import vat plus £8 charge. Often the import costs were more than the value of the goods :roll: but EU had a rule for under £15 value to be vat free.. But I think EU have abolished that rule now.. So be interesting if EU people get charged this vat now in goods under £15..
I think this is why UK government want tax collected at the point of sale, which aliexpress are now doing.. As otherwise, assume the £15 rule no longer applies, you could buy a £1 item from China then have to pay 20p vat then £8 admin charge by RM.. Couriers can charge a lot more for those admin fees as well :roll:
Edit:
What always pi**ed me off was import vat included being charged on the postage as well. I would also assume under the new tax collection rule that vat is on goods only and not postage.. Will have to keep a eye out for that from now on... Will try and find some goods to buy to see what it totals ...
Re: VAT charges to EU states
Posted: 24 Jan 2021 13:12
by cmorley
exxos wrote: 24 Jan 2021 12:29
What always pi**ed me off was import vat included being charged on the postage as well. I would also assume under the new tax collection rule that vat is on goods only and not postage.. Will have to keep a eye out for that from now on... Will try and find some goods to buy to see what it totals ...
I'd be interested to know too... I'd have thought postage would be included as it is a service you've paid for...
Re: VAT charges to EU states
Posted: 24 Jan 2021 15:01
by exxos
Also the curve ball is, what deal we have with the EU now, I think free trade was agreed for our fishing waters. At least for the next 5 years :shrug:
Re: VAT charges to EU states
Posted: 24 Jan 2021 15:11
by sporniket
As you know, I will place an order soon -I have the urge to click that 'checkout' button so it a matters of hours or days now, the time to ponder a last time what I buy now, and what I will buy next time-, so I may be able to give an answer soon. Or at least one datapoint for France.
Re: VAT charges to EU states
Posted: 24 Jan 2021 15:18
by tzok
exxos wrote: 24 Jan 2021 12:29
When I buy from aliexpress goods always had import vat plus £8 charge. Often the import costs were more than the value of the goods :roll: but EU had a rule for under £15 value to be vat free.. But I think EU have abolished that rule now.. So be interesting if EU people get charged this vat now in goods under £15..
This rule was not global to EU, and e-commerce was explicitly excluded from this... exclusion. Since over a year it was clearly stated, that in Poland there was no vat free value, for e-commerce. But as I said, since then, all AE goods started to be posted from Belgium, still without VAT or any additional charges.
Re: VAT charges to EU states
Posted: 24 Jan 2021 15:20
by exxos
sporniket wrote: 24 Jan 2021 15:11
As you know, I will place an order soon -I have the urge to click that 'checkout' button so it a matters of hours or days now, the time to ponder a last time what I buy now, and what I will buy next time-, so I may be able to give an answer soon. Or at least one datapoint for France.
Thanks, yeah be useful to know what's actually going on as I've totally lost the plot and all the info seems contradicting. :roll:
Re: VAT charges to EU states
Posted: 24 Jan 2021 15:31
by exxos
tzok wrote: 24 Jan 2021 15:18
This rule was not global to EU, and e-commerce was explicitly excluded from this... exclusion. Since over a year it was clearly stated, that in Poland there was no vat free value, for e-commerce. But as I said, since then, all AE goods started to be posted from Belgium, still without VAT or any additional charges.
All I know is EU allowed overseas goods into EU vat free under £15 value. AFAIK all EU countries has to follow the rules set. I guess if Poland charged vat then that wouldn't be in conflict to that rule.
Goods over £15 EU forced members to charge import vat. It was on of the reasons for UK leaving EU so we could make our own tax laws. It just seems a bit unfortunate currently as we still seem to be using EU tarrif laws :roll:
But I think I read a week ago EU abolished that law recently.. So again it would be interesting to know if someone in EU orders a £5 value item from China and if he gets charged import vat now...
Re: VAT charges to EU states
Posted: 24 Jan 2021 16:09
by tzok
exxos wrote: 24 Jan 2021 15:31But I think I read a week ago EU abolished that law recently.. So again it would be interesting to know if someone in EU orders a £5 value item from China and if he gets charged import vat now...
I bought this:
https://www.aliexpress.com/item/4000589513134.html
on 8.1.2021, received it on 21.01.2021, and I haven't been charged VAT, customs, nor any other charges.
For the first time I have chosen a Self-Pickup delivery. Unlike in parcels sent by Polish Post, this time the sender was stated to be Cainiao, Hangzhou, China. But there were no customs' declaration sticker.
Re: VAT charges to EU states
Posted: 24 Jan 2021 16:12
by exxos
That's interesting then...
Be interesting to see what UK to France does...
Re: VAT charges to EU states
Posted: 24 Jan 2021 16:43
by stephen_usher
exxos wrote: 24 Jan 2021 15:01
Also the curve ball is, what deal we have with the EU now, I think free trade was agreed for our fishing waters. At least for the next 5 years :shrug:
Incorrect. There's a 5 year transition for the fishing permits to catch fish in UK/EU waters, that's it.
The agreement also gives tarif-free access to the EU market (and vice versa) for certain goods but doesn't remove the regulatory issues and customs checks. This is the killer, especially for food. The second killer is the VAT charging infrastructures put in place at each end, especially the UK Inland Revenue.