RobinofLoxley Posted January 4, 2021 Share Posted January 4, 2021 Interested but not surprised to see this report on the BBC, relating to the collection of VAT on low price items entering the UK from the EU https://www.bbc.co.uk/news/business-55530721 A short term problem I hope. Link to post Share on other sites More sharing options...
RMweb Gold The Stationmaster Posted January 4, 2021 RMweb Gold Share Posted January 4, 2021 Judging by a number of the changes which have been made to the VAT rules they really have little to do with Britain leaving the EU apart from giving our chair polishing bureaucrats an opportunity to put their own totally daft ideas in place. Far worse that the thing you have linked is the end of 'VAT free' shopping for foreign visitors which is likely to hit British jobs and companies rather than upsetting someone who sells bicycle parts from Holland into Britain. All done without any consultation with UK business representatives and trade associations. 1 1 1 Link to post Share on other sites More sharing options...
meil Posted January 4, 2021 Share Posted January 4, 2021 1 hour ago, RobinofLoxley said: Interested but not surprised to see this report on the BBC, relating to the collection of VAT on low price items entering the UK from the EU https://www.bbc.co.uk/news/business-55530721 A short term problem I hope. This is not just trade with EU it applies to all imports. The £15 VAT de minimis concession has been removed. The EU are to follow in about April I think. Link to post Share on other sites More sharing options...
RMweb Premium Neil Posted January 4, 2021 RMweb Premium Share Posted January 4, 2021 I noticed this piece on the BBC news website too but I know little about how vat works from a retailers point of view. Do we have any accountants here who could explain what's going on in very simple terms that even I could understand? Link to post Share on other sites More sharing options...
Mike at C&M Posted January 4, 2021 Share Posted January 4, 2021 Thread about this subject already ongoing 1 Link to post Share on other sites More sharing options...
billbedford Posted January 4, 2021 Share Posted January 4, 2021 Quote At the same time, international shipping companies including Federal Express and TNT have said they are levying additional charges on shipments between the UK and the EU. They said this reflected the increased investment they had had to make in adjusting their systems to cope with Brexit. Plus a bit of rent seeking.. Link to post Share on other sites More sharing options...
RMweb Gold Jonboy Posted January 4, 2021 RMweb Gold Share Posted January 4, 2021 13 minutes ago, Neil said: I noticed this piece on the BBC news website too but I know little about how vat works from a retailers point of view. Do we have any accountants here who could explain what's going on in very simple terms that even I could understand? For business to consumer sales: last week the eu retailers simply charged VAT at their country’s normal rate and shipped the goods to you(unless trade hit a large threshold with an individual eu country). this week they are expected to register for uk VAT and charge uk rate, making a payment once a month or quarter of all such vat collected and various compliance reporting . In addition they will need extra admin processes to prove to the carriers of the goods this has done to ensure the goods go through customs. (business to business sales are a whole different set of rules). the eu retailers are making the point that to expect them to register for tax and compliance outside their own territory is unreasonable, particularly if other country’s start trying the same thing (Australia tried it a few years back and I don’t think it stuck....). 4 1 Link to post Share on other sites More sharing options...
RMweb Premium Neil Posted January 4, 2021 RMweb Premium Share Posted January 4, 2021 Many thanks Jon, I think I get the gist of it. Link to post Share on other sites More sharing options...
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