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Does anyone Understand Brexit Rules

Pete Thomas

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I have no knowledge of VAT or the system of taxation in the UK.
Very simply:

  • Business (can be an officially incorporated company, or sole trader such as a plumber or musician) with a turnover > £85,000 must charge and collect 20% and pay to HMRC for most services or goods (NB: some are exempt or lower rate).
  • Business with turnover <£85,000 can register voluntarily.
  • VAT registered business can reclaim any VAT they pay on their business related purchases and expenses.
  • VAT registered business do not charge VAT on exports (before brexit we did charge VAT to EU countries and vice versa - due to trade agreement whereby they are treated as if they are not exports)
 

MarkSax

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In the UK customs forms can be filled out online, there are plenty of post offices in shops, supermarkets, pubs even. The Royal Mail and other postal services such as DPD and UPS even collect your items form your house, so I can't see how the UK is stuffed in that respect.
As for importing goods from the EU, I regulary order sax repair materials from the EU - there will be no change financially or otherwise for me unless I order goods worth more than the value of £135.
Goods over the value of £135 should not have the VAT of the eu country applied and instead should have the UK Import duty applied this end - for some eu countries their vat is as high as 27% and some are as low as 17% . I mostly order from Italy where their VAT is 22% So in effect I should be saving 2% in VAT but paying the bonding fee from the courier of around £8 - 11.
If I order goods with a total value above £200 from Italy or any other eu country with a higher VAT rate of 20% I'd actually be saving money and the VAT goes to the UK and not the EU. And if IM ordering From France where the rate is 20% I should lie only paying the £8 to £11 bonding fee, unless the company I am buying from slaps on a "brexit fee" which then IMO they're cutting their noses off to spite their faces.
This is what I understand as well. Before Brexit, VAT would be charged in the country of origin in the EU, but now it's exported to the UK without VAT, and 20% VAT (HMRC) is charged on it in the UK only if the value is above £135. Handling fees, service fees and customs duties are separate items. So buying from the EU is not 20% more expensive. It all depends on what, where one buys it from, the cost and who is the carrier. And it's just less easy.
 

nigeld

I don't need another mouthpiece; but . . .
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This is what I understand as well. Before Brexit, VAT would be charged in the country of origin in the EU, but now it's exported to the UK without VAT, and 20% VAT (HMRC) is charged on it in the UK only if the value is above £135. Handling fees, service fees and customs duties are separate items. So buying from the EU is not 20% more expensive. It all depends on what, where one buys it from, the cost and who is the carrier. And it's just less easy.
Agreed, with regard to buying a new item from a company, but a second-hand item bought from an individual in the EU (e.g. a secondhand sax or mouthpiece) will be liable for 20% UK VAT, and the individual will not be able to subtract their own VAT, so the item will be 20% more expensive.
 
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Pete Thomas

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St. Mary's
New EU rules (although not due to brexit AFAIK) is that from July 1 imports to EU attract VAT. It was previously that anything <€22 was exempt. Whether this is just B2C (business to customer) I don't know.
 

squeak

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...but a second-hand item bought from an individual in the EU (e.g. a secondhand sax or mouthpiece) will be liable for 20% UK VAT, and the individual will not be able to subtract their own VAT, so the item will be 20% more expensive.
Sad and petty for minor value items transacted among(st) individuals.
 

Phil

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Sad and petty for minor value items transacted among(st) individuals.
And since when have politicians bought out by special large interst groups ever cared about individuals and small businesses......you can trace the indifference back centuries and find little regard.
 

MarkSax

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And since when have politicians bought out by special large interst groups ever cared about individuals and small businesses......you can trace the indifference back centuries and find little regard.
The whole world is like that unfortunately. Am gonna emigrate to New Zealand. Anyone living there who can give me pointers on how sweet or sour life is there? PM pls, before I get reprimanded again for posting off topic.
 

Phil

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Off topic is the topic :)

As for greed and exploitation....Im afraid that you can run but you cant hide.
 

Jeanette

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The whole world is like that unfortunately. Am gonna emigrate to New Zealand. Anyone living there who can give me pointers on how sweet or sour life is there? PM pls, before I get reprimanded again for posting off topic.
Start a new thread it may get more responses

Jx
 

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