Brexit: Duty and Tariffs on goods from EU Retailers

unforeseen

DeccyMarks said:

unforeseen said:

It sounds like there was Spanish VAT (12%) and UK VAT (20%) on it.

Spanish VAT is 21%. As far as I can see 12% tariff/duty is the default WTO amount.

My mistake, I knew there was a 1 and a 2 involved in Spanish VAT. 

ScroogeMacTurk

Surely if you're in the UK and buying from a VAT registered Spanish retailer, the Spanish VAT should be removed and replaced with UK VAT at the point of sale for goods over the £135 threshold, and collected at the point of entry for goods under £135. Seems a bit steep to be paying VAT twice for a single purchase.

DavidJonas

DeccyMarks said:

I'm struggling to find any information on this and from my basic understanding from news reports there wouldn't be any additional tariffs or duty on items (except alcohol and tabacco) bought/imported from the EU.

12% is the UK tariff rate on a lot of textiles. The tariff rates are shown here:

https://www.trade-tariff.service.gov.uk/sections

I don't know if they should be applied. Not going to pretend I have read the Brexit deal! But either the Italian company has got it wrong or elements of the British press/the Government are being economical with the facts. It must be one or the other.

You are not alone though. A lot of people are getting charged tariffs for importing goods from Europe. There was an article published in the Guardian about it yesterday.

https://www.theguardian.com/politics/2021/jan/21/britons-buying-from-eu-websites-face-more-than-100-import-duties

DeccyMarks

DavidJonas said:

I don't know if they should be applied. Not going to pretend I have read the Brexit deal! But either the Italian company has got it wrong or elements of the British press/the Government are being economical with the facts. It must be one or the other.

I know, this is the problem. The journalists are reporting on what people are being charged, but no one seems look at what they really should be charged. And the government response is specifically about VAT, not duty, so no one is clearing up the confusion.

I'm sceptical over claims that you can't pay fees upfront, because (like this Italian firm) they're stating that they're calculating fees upfront. I've previously bought items from Canada and also Amazon US, they calculate duty upfront, so there are no additional charges on delivery.

Hopefully with this becoming more public, some questions will be answered!

DavidJonas

After reading up a bit about this, I suspect these were tariffs and were being properly applied.

That there are (or would be) no tariffs between the UK and the EU is simplistic, and not true in practice. Goods with EU origin should indeed attract no tariffs, but that means goods made in the EU with materials made/grown in the EU. EU companies who manufacture some or all of an item overseas, or who use a certain proportion of materials from overseas, end up with goods that are not of EU origin. Tariffs are then applied to these.

Clothes, shoes, plastic toys.. anything outsourced to Asia is unlikely to qualify as having EU origin. It didn't used to matter because we essentially had a shared customs regime. But now it does.

If your hand stitched Italian brogues are hand stitched in Italy, using Italian leather.. there should be no tariffs. If they are hand stitched in Vietnam, using Chinese leather, you should expect to pay tariffs. Subject to any free trade agreements we have with Vietnam or China.

shezza2

Hi all not sure if this is the correct section.......A few weeks ago I purchased an item from Hungary and on the website it stated "All taxes paid and free shipping" Just to make sure I contacted them and asked if I would have to pay any other charges when the item arrived. They replied with a definite NO. Now three weeks on I have had an invoice from FedEx for £61.33 for import duties. Apart from never shopping outside the UK again is there anything I can do as I feel I was mis sold this item.

molerat

When was "a few weeks ago" ?  A lot changed on Jan 1st.  If you imported an item you are responsible for the duties, you need to ask the supplier if they paid any duties due as they can arrange all that from their end

shezza2

molerat said:

When was "a few weeks ago" ?  A lot changed on Jan 1st.  If you imported an item you are responsible for the duties, you need to ask the supplier if they paid any duties due as they can arrange all that from their end

14th Jan it was purchased on the understanding that there would be no other charges.

jon81uk

Assuming the item is worth over £135, it is possible they haven't updated their website for Brexit and import duty is due that didn't used to be.
Import duty is only applied on orders over £135.

Below that only VAT is due and most sellers should be passing it directly to HMRC I think.

Charsiu

Hi Everyone,
Back in December I did a lot of reading up on the changes to import duty and VAT when buying from the EU in 2021, and then I found this gov.uk site which I found quite definitive:
https://www.gov.uk/guidance/vat-and-overseas-goods-sold-to-customers-in-the-uk-using-online-marketplaces#goods-sold-before-1-january-2021
In this Government site it clearly states that "If the online marketplace receives payment for an order before 11pm on 31 December 2020 and dispatches the item after that time, these rules will not apply." - it's quite black and white to me and I interpreted it as if I order and pay before that time on the 31st of Dec, I won't be liable to any import fees or VAT whenever it is delivered in 2021 (just like I've never been charged in the previous 5-6 orders over the last couple of years as we're in the EU).

However, UPS just delivered an invoice for the VAT and other custom charges on my order, of which I have to pay before they release the consignment - have I misinterpreted our government site or is this a clerical error by UPS?