Import Fees/VAT on item from USA?

the_lunatic_is_in_my_head

As with most Youtube videos, 5 times longer than it needs to be, but basically the guy doesn't want to collect VAT for the UK because items are cheap with low margins, risk of lost parcels is high and they don't have many customers from the UK buying stuff so it isn't worth the trouble to fill out the paperwork.

Moans about high international shipping costs and inconvenient tax arrangements whilst not bothering to add fair balance by mentioning the recent increases the UK and the rest of the world have to pay for shipping to the US due to their customs policies in order protect US business from overseas competition as they felt the previously agreed rates set by the Universal Postal Union was to the disadvantage of US businesses. 

https://tamebay.com/2020/06/royal-mail-international-business-contract-usa-price-increases.html

Last year, the UPU agreed to allow the US to set terminal dues/prices themselves from the 1st of July. This met the US administration’s stated objective – to increase how much they charge other countries for delivery. It averted their threat to leave the global network. It will see a significant increase of over 100% in the the rates Royal Mail pay for last mile delivery in the US from the 1st of July [2020].

Complaining that if they agree to such a tax policy in the UK it will open the door for any country to adopt the same tax polices whilst ignoring that Norway, from my understanding, have had this policy that we now have for almost a year, since April 2020, with 25% VAT required to be collected and registration with Norway VAT required.

www.skatteetaten.no/en/business-and-organisation/vat-and-duties/vat/foreign/e-commerce-voec/online-shops-and-e-marketplaces-registered-in-the-voec-register/

Foreign online shops and e-marketplaces are obliged to collect Norwegian value-added tax (VAT) on goods valued below NOK 3,000.

In order to do this, they have to register their business in a simplified scheme with the Norwegian Tax Administration. This new scheme is called VOEC, an abbreviation of VAT on E-Commerce.

Plus the entire EU were due to have the same policy at the same time we did but have delayed it by 6 months and it will be in effect from July.

www.avalara.com/vatlive/en/vat-news/eu-2021-ending--22-import-exemption--import-oss-returns.html?campaignid=7010b000000eOixAAE&lsmr=Paid%20Digital&lso=Paid%20Digital

The low-value consignment VAT exemption, termed the ‘low value consignment stock relief’, was intended to relieve customs from the burden of checking large volumes of packages for small amounts of potential tax revenues. However, it is leaving EU-based sellers at a major price disadvantage since they must charge VAT when the goods were dispatched from within the EU. 

Instead, it will require EU and non-EU sellers to charge VAT at the point of sale for consignments of €150 or below. This will create a more efficient ‘Green Channel’, with quick and easy customs clearance. Note – the delivery agent may still act as the import VAT collector (see below).

Sellers will charge VAT at the rate of their customer’s EU country of residence at the point-of-sale on the website. Sellers can use the delivery address of the customer to determine the country VAT rate. No VAT is due at the point of import in this case.

welshbabe88

Yes, it turns out if I ordered they would cover taxes etc - but I'd be paying about 10 dollars postage and about 10 for tax on top - so not really worth it these days.