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How I would suggest they do it. Costing wise VAT is already included so pricing provably wont change unless tax rates are same/similar. Then, set up a Britain o
by 2Gkashmiri 6y ago
How I would suggest they do it. Costing wise VAT is already included so pricing provably wont change unless tax rates are same/similar. Then, set up a Britain operations which would mean as the article said, registered with local tax office.
The next part would be, to "sell" goods to that British subsidiary tax account which would then sell to local customers.
That or do how things work with aliepxress and assume you are aliexpress and your customers want to buy from you. You just add VAT as import duty at time of sale and that should do it.
- pmontra 6y agoNot every business is large enough to sustain the overhead of a subsidiary in the UK or in any other country. Probably there is an opportunity window for middleman services that collect orders and sell to UK customers, an Alibaba from the EU to the UK.
- toast0 6y agoFor Brooks, they clearly have a UK subsidiary already, because they own and operate a manufacturing facility. It's probably just a bit of time to digest the trade agreement and figure out what the best thing is going forward, shich I would guess is probably finding a way to ship UK destined saddles within the UK to avoid customs. For some of the other bicycle companies mentioned, it seems they don't have UK operations, so they may not want to have formal relations with the UK government. They'll need time to figure it out too, but probably worst case is they'll end direct mail order sales to the UK, and you'd have to buy through a retailer. But, again after some time to understand the new rules.
- rsynnott 6y ago> Probably there is an opportunity window for middleman services that collect orders and sell to UK customers There absolutely is, and such services are already showing up. "Let's fund our middlemen instead" wasn't a great slogan for a bus, of course, but this was always inevitable.
- nottorp 6y agoI suppose someone up there thinks they're stimulating the British economy this way, with opportunities for local middle men to handle the UK VAT. However, those middle men will be paid by ... the average UK consumer. I don't see how that's a plus for the UK economy. Or maybe it inflates GDP while decreasing purchasing power...
- rsynnott 6y agoWell, realistically, one of the biggest ones will probably be Amazon, so, Foreign Middlemen.
- 2Gkashmiri 6y agoSubsidiary as in a tax account. They dont have to set up a physical office, employ people. Just a paper org