Ebay - buying from Europe now..

se2020

There are a few items/sellers in Europe that I regularly buy items from.
They are not using the global shipping system, mainly either DHL or UPS

If I buy something now how do I work out in advance what the import duty / charges will be?
Is there any allowance for no charges for goods below a certain value?

soolin

I did see this thread which suggests that VAT will be charged by sellers overseas with no lower limit on when it becomes due, however I can’t quite see how that fits in with what happens currently with items from outside the EU.

https://forums.moneysavingexpert.com/discussion/6227497/big-warning-uk-gov-has-removed-the-15-low-value-vat-exemption-threshold-on-importing#latest

soolin

This is what HMRC is currently showing

https://www.gov.uk/prepare-to-import-to-great-britain-from-january-2021

Spoonie_Turtle

I haven't read up on the details yet but the deal sounded like it was that things would go through customs checks but with no tariffs. No mention of import VAT though ... which is what I will need to know as well. Products from the EU already include VAT in their prices anyway I thought? Though it would go to the EU rather than to HMRC (now that we're separate, that matters) so they're going to make us pay VAT twice? I'm so confused.

(The abolition of the £15 threshold actually is not an entirely direct consequence of Brexit, as the EU are abolishing their €22 LVCR in the middle of next year anyway. But I don't want to get involved in that other thread.)

se2020

From what I can work out,
I will get charged vat on items that I import from Europe,  
It seems like the sellers I deal with are either not vat registered or they do not want to mess about removing the vat before selling to the uk so yes, in effect, it looks like I may have to pay vat twice.

More of a concern is the fees that dhl and ups charge for "clearing" an item through customs.
They are £11-£14 so will make the purchase of low value items unviable I think?

KxMx

My understanding of low value items (under £135) is that the VAT will be paid at point of sale, not point of import. POS then passes it to tax man. 
Therefore there is no need for Royal Mail etc to do any work with Customs on our behalf when the goods arrive. So no clearance fee.
Happy to be corrected here but that's my take on it...
How import duty (135+) will be done I'm unsure. 

soolin

se2020 said:

From what I can work out,t
I will get charged vat on items that I import from Europe,  
It seems like the sellers I deal with are either not vat registered or they do not want to mess about removing the vat before selling to the uk so yes, in effect, it looks like I may have to pay vat twice.

More of a concern is the fees that dhl and ups charge for "clearing" an item through customs.
They are £11-£14 so will make the purchase of low value items unviable I think?

The ‘other’ thread which I have not responded to as it seems rather over emotional, appears to suggest that as the VAT is going to be charged at point of sale then items will arrive without any handling charges. In some ways that might assist with my purchases as at the moment I have to be careful to ensure I keep purchases well under the £15 limit , in future if I have to pay VAT at point of sale on everything but then don’t have to pay handling charges I can buy more in bulk as I have nothing further to worry about .

se2020

So if I buy an item from a private seller in germany they will have to remove the german vat somehow and pay it to the uk government instead?

Spoonie_Turtle

I had previously read that if VAT was not collected at the source, parcels would still be handled and charges collected as under the current procedure. However, this updated page does not appear to provide for that eventuality: https://www.gov.uk/government/publications/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021

If I have understood correctly, the only small businesses really able to sell to the UK will be those using online marketplaces, because it's just not feasible to register individually with HMRC. They've truly done an excellent job of limiting the international market for individuals with this! *sarcastic thumbs up*

martindow

Spoonie_Turtle said:

I had previously read that if VAT was not collected at the source, parcels would still be handled and charges collected as under the current procedure. However, this updated page does not appear to provide for that eventuality: https://www.gov.uk/government/publications/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021

If I have understood correctly, the only small businesses really able to sell to the UK will be those using online marketplaces, because it's just not feasible to register individually with HMRC. They've truly done an excellent job of limiting the international market for individuals with this! *sarcastic thumbs up*

I think VAT collected at source is for ebay and other online market places for items under £135.  It is a good idea and long overdue that overseas ebay purchases get their VAT collected - level playing field and all that.

Over this figure for Ebay and for other items regardless of value customs clearance will be required.  It does mean that low value items from private sellers or companies will be hit with a clearance fee which could be a large percentage of the item's value.

Does anyone know what arrangements there are for sales to the EU?  VAT rates in individual countries vary, but maybe there is a common system for the EU.

soolin

This is where I am getting confused, it is being interpreted elsewhere as meaning that as the VAT is taken at source by the selling platform or retailer then any handling charges, which would sometimes be the bulk of the costs, will not be charged. This also seems to be worldwide now. So for instance I used to buy a product in the US that cost around 30$ with postage, However when it arrived in the UK RM would then charge me an additional £11 or so for the small amount of tax and duty they paid over the HMRC on my behalf, but an £8 handling fee for doing so. In future might it not mean that my $30 purchase will initially cost more as I will pay UK VAT at 20% on it , but will avoid the £8 handling fee?

As for selling overseas this looks like a minefield as anything going overseas seems to need HS codes and something called an EORI number which I cannot get my head round. I am currently not shipping outside the UK and have not done so since March on any platform

Martin has an article here which I don't really think quite covers the specific question on this thread https://www.moneysavingexpert.com/family/brexit-what-it-means-for-you/