New VAT rules for overseas sellers supplying goods to UK customers - Any experiences yet?

[PC2017]

I have just read that the UK is now requiring overseas OMP's to register for VAT and to add VAT at the point of sale for UK B2C and B2B sales. As we all know some parts can not be sourced from ebay and such or if they can, it's often dispatched from China or at over inflated prices. From what I can understand a VAT number will be a requirement on the customs declaration, What I can not find is what would happen if there is no VAT number on the form, I would assume you would be issued with the dreaded Royal Mail surcharge notification for of £8.00 + the required VAT for any item purchased overseas as the allowances have been removed - I will purchase a PAS from Aliexpress as it is what I would class as a OMP and see if VAT is added at the point of sale. Could this be a tale of caution when purchasing high value items?

 

[vfr400]

I ordered two controllers from China. They came a few days ago. No duty, no invoices, nothing different to before.

 

[oyster]

Nothing to do with bikes, but...

EU website purchases: the import charges UK customers have to pay
Consumers now face UK VAT, rather than local rates, as well as customs duty and courier admin charges

• Britons buying from EU websites hit with £100 customs bills

https://www.theguardian.com/money/2021/jan/21/eu-website-purchases-the-import-charges-uk-customers-have-to-pay

When I looked at Aliexpress the other day, I thought VAT was being added at time of order?

The small value consignment relief (£15) has gone.

Customs clearance can be £8 through Royal Mail but more through most others.

Above £135, you could also find yourself charged duties.

 

[PC2017]

from China

Did you order them before Jan 1st 2021?

There is three other things of note - I know of one company (not ebike related) that has removed the UK from their dispatch list - will this effect other sellers not wishing to deal with the bureaucracy?

I believe (not overly researched) that the EU was to bring a similar system into force in July 2021 but this has possibly been shelved due to Covid - Possible following the Dutch model (correct me if I am wrong)

And if overseas companies do ignore UK rules and we make a purchase in good faith we will get a RM notification and the added cost of handling.

 

[PC2017]

Customs clearance can be £8 through Royal Mail

Hopefully if the company does a lot of business with the UK then the VAT notice on the customs form Should prevent this from occurring. I will read that article. EDIT Good article a must read - Thanks oyster

 

[Scorpio]

It's very early but I saw a response from a USA bike parts (motorbike - not cycle) supplier, he has decided to refuse to process any UK orders under $180.
Above this value UK customs handle any duty due - this is business as usual for him.
To process orders below this value he would have to register for a UK VAT number, collect the duty due from the customer, hold it securely, and forward it (quarterly?) to UK HMRC. He sees this as too complicated and time consuming, with the risk of something going wrong which could cost him time and money.

 

[vfr400]

Did you order them before Jan 1st 2021?

No.

 

[Kwozzymodo]

Anyone that has placed a bulk order for ebike parts from China would have experience of the additional duties, vat and ‘processing fee’ chargeable on their order. These costs have added around 40% to the prices listed on Chinese websites.

Looking at some of the prices that Chinese sellers are charging on ebay and the like there is a huge amount of tax avoidance going on!

 

[soundwave]

i put in a order from china on the 1st jan cost was £253 arrived no problem no duty nothing.

 

[Scorpio]

@soundwave thanks for the link, a very well presented view of why he stopped shipping to the UK.
I'd like to think UK.Gov will realise their new system is preventing UK from purchasing from overseas but I'm not convinced they will reverse or suspend their plans. Time will tell.

 

[soundwave]

Custom throne fortransformers wfc siege earthrise quintesson judge(no figure inc | eBay

<p dir="ltr">*No figure is included in this listing* This listing is for "the hot seat", a custom 3d printed LIGHTED throne amd custom translucent pink base in pic #4. Designed for a judge but will also fit other legends size tfs. </p> <p dir="ltr">Please see my other items for some other...

www.ebay.co.uk

not paying it simple as that

 

[PC2017]

not paying it simple as that

Ebay's global shipping programme - is that new??

International purchases and postage for buyers

You'll find items from all over the world on eBay. International sellers can send items to you through regular postage services, or they may use one of eBay's shipping programmes.

www.ebay.co.uk

 

[soundwave]

dont know as dont post outside the uk but the postage for stuff from the usa has shot up loads in the last few months on everything.

Megatron w/box Leaders G1 China Transformers | eBay

Find many great new & used options and get the best deals for Megatron w/box Leaders G1 China Transformers at the best online prices at eBay! Free delivery for many products!

www.ebay.co.uk

SIDESHOW EXCLUSIVE PRIME STUDIO TRANSFORMERS MEGATRON GENERATION 1 STATUE Figure | eBay

Find many great new & used options and get the best deals for SIDESHOW EXCLUSIVE PRIME STUDIO TRANSFORMERS MEGATRON GENERATION 1 STATUE Figure at the best online prices at eBay! Free delivery for many products!

www.ebay.co.uk

 

[soundwave]

eBay Global Shipping programme starts to get more complex - ChannelX

eBay Global Shipping programme changes to the Terms and Conditions includes obtaining an EORI number for export to the European Union

tamebay.com

 

[PC2017]

It wouldn't surprise me if the USA bureaucracy magically disappears when the new POTUS has warmed his chair up and had that awkward chin wage with Boris

But as for the EU and China I am more concerned about the sellers that mark "gift" on the package hoping to circumvent the VAT minefield only for packages to get stopped and surcharged by greedy RM making the whole "money saving" point of buying from China null and void, not even mentioning the impossible to source parts. - Royal Mail shares are up 0.49% lets see if they go up
RMG 415.83 GBX +2.03 (0.49%)
22 Jan, 16:38 GMT ·

 

[jokskot]

I bought a pair of cycling overshoes from Aliexpress at *$13.99 post free. They added $2.80 as vat which they will remit to UK (maybe!!??)
* I find I get a better £/$ exchange rate from my credit card company than if I bought directly in sterling.

 

[soundwave]

CUSTOM DUTY ISSUE
We would declare a value of USD20 for most of the items (if it is not too big and heavy) to avoid custom duty issue. So for most cases nothing is to be worried about. However, in some countries (Germany, Sweden, etc.) , we feel sorry and helpless but duty may still occur, and buyer should be responsible for it. TFSAFARI would offer a coupon as a consolidation.

 

[PC2017]

declare a value of USD20

I got stung by that one, one package marked $20 at the time the exchange rate made it £15.30 or something stupid like that and I got charged however now the "up to" £15.00 allowance has now been scrapped.

my credit card company

Report back if you get any hassle from RM - Yer I noticed my debit card now charges 50p plus the currency rate of 2.99% but the credit card charges just 2.69% for now anyway.

Its appears to called notice 143
GOV

Import VAT and Customs Duty on gifts

Find out about Import VAT and Customs Duty when you send gifts into the UK.

www.gov.uk

 

[soundwave]

Hallo

PayPal is ok. But we can´t deliver glue at the moment.

If we send only the Surrounds we can use a Letter ( € 4,50).

If send with Glue we have to take a Parcel and we have

to fullfill customs formalities that we don´t know.

Many Parcel Services have canceled deliveries to UK.


wtf is going on in the eu then as trying to get 2 bits of foam and some glue from Deutschland

 

[soundwave]

On Friday, Europe’s largest parcel delivery network suspended its road service from the U.K. into Europe—including the Republic of Ireland, which has the EU’s only land border with the U.K. DPDgroup said the move was largely the result of new paperwork that is required to send British parcels into the EU.

Brexit chaos: Logistics giant DPD pauses U.K.-to-EU parcel shipments

The company said 20% of parcels coming from the U.K. didn't have the right customs data attached.

fortune.com