As I mentioned, it's odd. Norway (where I live) is in a similar situation. The big merchants (eg G4M) Can charge duties, vat etc. And then, as I understand it, attach the payments to the goods for when they clear customs (possiblity with help from DHL?). The little guys, we pay at the post office counter above some threshold.I can't understand how HMRC can make a citizen of a foreign sovereign state pay UK tax. How on earth can that be enforced? Perhaps it's one of the bugs that will shake out in due course. I do hope so. What a mess.
Presumably this should also mean that products imported from the EU should be free of vat at the point of sale, therefore cheaper, as we would then have to pay vat on import.
Jimmymack. You still pay the VAT. The difference is WHO you pay it to. I can guarntee you that every business that goes through all those hoops to sell to the UK...gather their VAT...send it to them and pay yearly dues will be passing the expense on to the customer in the form of "Shipping and Handling".
I expect to pay vat, I would rather not but there you go, but with the new situation I assume that goods bought from the EU, over £135 or whatever, should be sold at the base price, without tax which will be paid on import. This means that for people such as Phil you need to offer a tax free price for those of us outside the EU. I assume that if you are selling to the US you sell at a lower, vat free, price which would be the new norm for the UK. If not we are paying tax on the tax which isn't going to work for anybody.I think this is the way it will be. Instead of the EU company charging VAT, it is charged at point of import, + handling charge + import duty if applicable.
To pay tax on a tax ? Welcome to France !I expect to pay vat, I would rather not but there you go, but with the new situation I assume that goods bought from the EU, over £135 or whatever, should be sold at the base price, without tax which will be paid on import. This means that for people such as Phil you need to offer a tax free price for those of us outside the EU. I assume that if you are selling to the US you sell at a lower, vat free, price which would be the new norm for the UK. If not we are paying tax on the tax which isn't going to work for anybody.
Yup. It's the merchant platforms and big online vendors who'll do well from this kind of thing - like Covid!small item on ebay
This is better IMO than it being applied on import by HMRC (or rather by the carrier on behalf of HMRC with the inevitable handling fee and hold up while you either do the online payment)But that's too complicated to have different rules so we can also decide to make people pay the UK VAT all the time..
That's what I know for now, let's see how it goes within the next weeks.
It applies at the individual seller level, not the governmental. And it's not just the EU, it's worldwide.So maybe it is down to each country in the EU to define their own system