Stonec0ld
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Hence the need for testing!
Maggard Razors and VAT for EU Customers
- Thread starter Optometrist
- Start date
RussellR5555
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Yes True
UKRob
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When I contacted Italian Barber (Canada) recently they said they had no plans to start supplying the UK because they were not prepared to set up the administrative collection system required by the changes imposed since January this year. Now that the EU regulations kick in from July, it will be interesting to see whether suppliers just bite the bullet rather than lose a huge European/UK market.
There seems to be a grey area around the offset of local taxes when applying export VAT. I assume the likes of Maggards previously did not apply local sales tax to exports (but stand to be corrected) - and were, therefore, at a price advantage if an order was below the import threshold - this still seems to be the case in the UK for anything less than £135.
There seems to be a grey area around the offset of local taxes when applying export VAT. I assume the likes of Maggards previously did not apply local sales tax to exports (but stand to be corrected) - and were, therefore, at a price advantage if an order was below the import threshold - this still seems to be the case in the UK for anything less than £135.
The Gentleman
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If you live inside EU this is bad news. Maggard´s has always put the value at max $15.95 no matter the actual cost and that is great if you buy something expensive.
Anytime I have bought from a US supplier the local sales tax was not applied for export. The price you see on US and Canadian suppliers sites is the price without tax as is the custom here as opposed to the VAT included in the price in the UK/EU. When I have bought from the UK/EU the VAT has always been subtracted from the listed price as the sale is for export and the country the item is imported to is responsible for collecting their own taxes due. Seems a simpler system than the new way the UK/EU want to do business now.
I think it will depend on just how big a market loss to North American suppliers not shipping to the UK/EU will be. There may be a few that not setting up to comply with the new regulations will mean a big enough loss to make it feasible to comply in order to continue to sell there. I think it is also likely that North American sellers that do comply will charge an administrative fee to the buyer to defray the extra cost of being in compliance.
Bob
Ventastic
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It will be very difficult to quantify the „loss“ as you have to account for the fact that many people won‘t be ordering anyway on account of the 20% increase in price.
Yea, I think that will shine through in the thinking on this side of the ocean as some already have said they won't be shipping to the UK/EU. For me these new regulations are a basically a protectionist move in regards to trade. OTH a 20% increase on the price of imports from China will still probably mean that Chinese products are still more than competitively priced anyway. In any event it is not good news for the UK/EU consumer.
Bob
Several American vendors I buy from (eg, LL Bean and Lands’ End) have been collecting Canadian customs duties and taxes at source for several years. Duties and taxes are explicitly itemised on the sales invoice, but any administration fee is not itemised; if any, I assume it’s blended into the price. No big deal as far as I’m concerned, as I factor this into my buying decision. There is no difference if I pay these charges through the vendor or Canada Post, I avoid FedEx at all costs if I can even if it means waiting a bit longer for delivery. The one advantage of not having the vendor collect these charges is that about 50% of the time they aren’t collected at the border when shipped by Canada Post. BTW, I will not ask a vendor to fudge the customs declaration; some do, however, of their own volition.
LL Bean and Lands' End may be collecting duties and taxes but I doubt there is a Canadian Government regulation requiring them to do so. No purchases I have made from the US have ever had customs duties and taxes listed on the invoice. Those items were taken care of or not by CBSA at point of import. I'll take all the advantages I can get.
Bob
UKRob
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I’ve just received a notification that sales via eBay into the EU will attract 20% VAT from July - in addition it looks as though EBay are deliberately leading sellers into their shipping programme in order to be compliant with VAT declarations - they are warning that purchasers may have to pay double VAT if you continue to use the post office.
I don’t make many sales via eBay and thus is just one more regulation they are imposing which makes me feel like not using them again. Already they want me to sign up to a new fee structure that avoids PayPal.
I don’t make many sales via eBay and thus is just one more regulation they are imposing which makes me feel like not using them again. Already they want me to sign up to a new fee structure that avoids PayPal.
Completely agree mate, I’ve had an email saying I can’t sell until I sign up to the new structure.
TheChrisC
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I wish I never had. Now it takes days for me to receive the money from sales and they’ve almost completely stopped doing the low fee offers.
Dr Watson
James
"List for £1" offers which were usually biweekly for 6+ months completely stopped for me. As soon as I signed up to the new system I get weekly 80% off final value fee offers... Not as good but but better than a poke in the eye. I was very annoyed about the changeover and viewed it with suspicion but have found I actually prefer the new system, much easier... What you receive in your bank account has already had all fees taken out.
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SeanC
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There are workarounds to avoid the overpriced eBay Global Shipping Porgramme, however the imposition of VAT when none would previously exist e.g. turnover of less than £85k in the UK, is patently unfair
| From 1 July, and in line with new legislation, eBay will collect VAT on all goods which are sold through eBay and shipped to buyers in the European Union (EU) with a consignment value up to EUR150. eBay will collect VAT on all sales to private individuals, regardless of seller status. eBay will declare the VAT collected under our Import One Stop Shop (IOSS) number. | |||||||
| As EU customs need to identify if VAT has already been paid for EU imports, eBay’s IOSS number needs to be shared electronically with carriers. In cases where eBay has collected VAT and the goods are shipped from the UK, you are responsible for sharing eBay’s IOSS number with your carrier. Failure to share eBay’s IOSS will lead to buyers paying VAT again on delivery. Note that the Post Office systems do not accept a manually provided IOSS number. | |||||||
| If you continue sending parcels through the Post Office without pre-purchasing labels through Click & Drop or the other alternatives set out below, your buyers may have to pay VAT again on delivery. | |||||||
| To simplify the process, we will enrol you into the Global Shipping Programme (GSP) by 1 July. You will receive an email once we have successfully opted you in with further details and a link to opt-out should you wish to do so. GSP will ensure that the IOSS is correctly transmitted and that all customs charges/processes/international delivery is taken care of. All you have to do after a sale transaction is post your parcel to the UK Shipping Centre. Learn more here. | |||||||
| If you wish to continue to post packages to Europe yourself using the Royal Mail or an express carrier service, the alternative postage methods available to you, where you can electronically declare eBay IOSS to your carrier are: | |||||||
| |||||||
| All the best, eBay |
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TheChrisC
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I think for me the only real issue with waiting for the money to arrive in the bank now is not being able to post the items out until I get that money. In the past because it was straight to PayPal I could get the postage paid for within a day or two.