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VAT threshold is 135 GBP per parcel, and you're on the hook for full VAT handling plus whatever time it takes probably overburdened (thanks to stupid decisions
by p_l 6y ago
VAT threshold is 135 GBP per parcel, and you're on the hook for full VAT handling plus whatever time it takes probably overburdened (thanks to stupid decisions by politicians) civil service to register you plus all the setup and training to handle VAT on your side.
Also consider that the onus is on the exporter, not importer now. Which also means trouble for importer as they have possible issue of "our supplier doesn't have the VAT handling done, we don't have any viable alternative"
- ClumsyPilot 6y agoI have done VAT calculations, they are elementary and the whole registration and submission process is automated. Lets not add imaginary greciences to the real ones - this whole thing would be easilly handled by any sales platform like ebay/amazon/aliexpress
- p_l 6y agoFor "Online Market Places" there's separate registration category where they will handle VAT on behalf of the sellers. However, they aren't the only thing, and I don't know about you, I do not enjoy teaching taxes to remote supplier, even if they speak perfect english (which is not given, not like I speak perfectly either.)
- londons_explore 6y agoSeems simple enough to simply require either the buyer, or the seller, or the importer, or any stranger to pay the VAT. Simply have some kind of QR code which is issued by the government and stuck onto the package representing the VAT paid. Anyone can log into a government website to pay moneys and get a code. Have an API for companies to self-issue codes too. If anything arrives at the border without the code affixed, someones gotta pay the taxes before the goods are released. It's awfully similar to a system existing in postage for centuries... Stamps!
- p_l 6y agoArguably the present system was easy, and adding optional "VAT stamp" for companies that handled VAT on seller side would have been easy... but it's not how things happen.
- ChrisRR 6y agoYou have to pay VAT on any imported item. If your item is below £135, you have to pay VAT at the point of sale. Above £135 and the VAT is collected at customs (maybe optionally at point of sale too? This part is unclear)
- p_l 6y agoas I understand so far, the new regs are as follow: price <135 GBP = VAT exempt for import price >135 GBP = VAT has to be collected by point of sale and handled there. The main difference is that previously, above 135 GBP you paid VAT as part of customs process, on importer side. Now you will have to worry about their VAT registration etc.
- ChrisRR 6y agohttps://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 https://www.gov.uk/government/publications/changes-to-vat-tr... From what I understand, tax on goods below £135 is still to be paid but at POS "For imports of goods from outside the UK in consignments not exceeding £135 in value (which aligns with the threshold for customs duty liability), we will be moving the point at which VAT is collected from the point of importation to the point of sale. This will mean that UK supply VAT, rather than import VAT, will be due on these consignments." "For most consignments not exceeding £135 in value, instead of VAT being collected at importation or delivery to the customer, VAT will be accounted for at the point of sale."
- p_l 6y agoI swear someone took a class in how to write a misleading information package there, because they later claim about goods under 135 GBP being free from VAT... import VAT. Because two section above they put it under supply VAT.