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Clothing from EU and VAT
monaymadlol
Posts: 494 Forumite
Hi, still trying to get my head wrapped around the brexit changes.
I bought a jacket on sale from a company in Germany and looking at the PayPal receipt, was charged around 27e (25%) in tax.
A) is it correct I should not have been charged
will I get 20% vat added here, or is the jacket price of 108e excluding tax below the threshold?
C) whether in this case or future cases, do I claim back tax from customs or from the company?
Thanks
I bought a jacket on sale from a company in Germany and looking at the PayPal receipt, was charged around 27e (25%) in tax.
A) is it correct I should not have been charged
C) whether in this case or future cases, do I claim back tax from customs or from the company?
Thanks
0
Comments
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You should have been charged VAT at the prevailing UK rate which is 20%. You will not be charged VAT "here" on import, provided that the paperwork has been completed correctly. You can not claim back the VAT.0
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When did you order the jacket? Anything ordered prior to the 1st Jan will be the old rules.If afterwards, you pay 20% VAT on anything under £135 - collected by the retailer who must be VAT registered with the UK.1
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3rd Jan. Is the 25% some sort of German tax?0
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This was the breakdown
142. 77e
- 33.98 discount
=108.79
+ 27.13 tax
=135.920 -
Germany VAT is 16% at the moment, its normally 19% but was cut due to Covid etc1
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That's what it probably is0
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25% mark up means they pay 20% of the gross price as tax.monaymadlol said:This was the breakdown
142. 77e
- 33.98 discount
=108.79
+ 27.13 tax
=135.92Let's simplify the numbers; if it was £100 + VAT the total would be £125 (25% mark up) which then allows £25 (20% of £125) in VAT and the original price of £100 for the item.1
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