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Brexit prices for those outside UK


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Hi

Please, no hijacking of this thread for politics please.  I live in 'EU Land' and after 31 March, if no agreement is signed, according to the tax rules we have here, when ordering something from outside of EU we pay tax - even if tax was paid in the original country.  This means for me, buying something from say Rimmers adds both UK tax and Danish tax.  I think Moss my be better suited as they seem to have a subsidiary in France but from what I foresee this could make ordering parts from UK too expensive and I guess is also not good for the suppliers either.

Does anyone else outside of UK have the same concern?  Should I get a ton of orders in now?!

Richard

 

Edited by AarhusTr6
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Hi Richard,

I had the same thoughts, but since I have almost all the parts I need (when did I think that earlier), I have not further searched it.

Waldi

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It would not hurt buying those essential parts that you know you will need, now. I definitely would

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Hi

I asked Moss and they said they did not know . . which must be so difficult for them to operate as a business.  In Denmark we don't just pay VAT again but also we pay an administrative cost on top so often its not worth buying outside of the EU.

I do though see there is a big dealer in Mechelen (Belgium) and is actually located where the old Leyland factory was so maybe that will be the place to buy from in the future.

Lets see!

Rich

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When (if) we have a trade deal with the USA I'm hopeful we can import good quality parts into the UK without the exorbitant taxes we currently face.

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Hi Jon,

 I think you are right.

At present you pay tax (VAT) in the country of purchase but no tax in getting home.

If you are exporting to a non-EU country you do not pay UK VAT but may be liable to import tax in your home country.

 

Roger

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Hi

Yes . .never considered, that if exporting maybe you don't pay the UK Government its VAT but only the destinations counties VAT (which is 25% here....).  If this is the case I know when I buy from US I have to pay quite a high admin cost which like I say negates the advantages.

Would be interesting to see how much % is EU sales for Moss/Rimmers etc, but I do know that when I meet Germans, Danes etc they all use mainly these two vendors.

Rich

 

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Without an agreement then it should revert to a regular export (no VAT charged at source) but  tax is due at the applicable rate of the destination country (payable locally)

...... Andy 

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Andy beat me to it, VAT should not be charged on exports, only import duty (or equivalent) on import to the relevant country.  This does not stop some businesses "forgetting" to omit VAT (free money to them).  The carriage charges can be suspiciously similar to the VAT forgone.  

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Importing to Australia , we get charged by the suppliers a VAT exempt price but the Government gets the major sites-ebay etc to pay them 10% GST on the payment which is automatically added to the bill. Smaller direct purchases from the suppliers used to fall through the net GST free.

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As above there is No VAT on exported goods. As for the receiving country, it will not charge VAT either as VAT is charged on sales in that country, not imports. What you will pay is the import duty / tariff so that will be set by the EU and may well not be that high. In fact, it will be set at the WTO rate unless the exporting country has a trade deal with the EU when it will be at the rate of that deal. The exception to the WTO rate is if the EU has decided that 'car parts' is at a different rate to WTO rates for 'car parts' in which case it will be the same non-WTO rate for all countries that do not have a trade deal with the EU. I.e. If WTO was 10% then the EU could say 'car parts' are 5% ( and this could help their car industry importing components from the far east).

As currently the UK car industry imporst a (very) significant amount of components from non-EU countries, there probably is not a high tariff otherwise they would not be doing it. In other words, the overall cost is cheaper dealing outside of the EU than within it. It also means just in time works for goods coming in from outside the EU just fine.

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Hi Richard

I am not sure you are 100% correct as I know when I get something from USA I pay the Danish tax AND an import fee/admin charge, so generally I never order anything from the US.  Example, I ordered something cost about $60 and I paid almost the same again when I paid all of the taxes and costs on top.  Maybe this is just Denmark (a very highly taxed country) but this is my experience so far.

Maybe we know in a few weeks.  I am driving over in April but I guess I could be customs checked on way back into EU Land !

Rich

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Hello,

This page explains things in fairly simple terms. (The official .gov.uk pages are a bit more confusing.) . It also applies to UK imports only.

https://www.shippo.co.uk/faqs/what-duties-and-taxes-will-i-have-to-pay/

It deals with importing from outside the EU, (What happens with imports from the EU next month is anybody’s guess…)

Basically you have to pay UK VAT on:

The item price + the shipping cost + any import duty you have had to pay.

There is an example calculator on the page.

Put some test figures in and you will probably never want to import items again!

Charlie

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On 3/2/2019 at 4:08 AM, scousegit said:

it's my understanding that if an item is exported from the UK then there is no UK tax payable; or have got hold of the wrong end of the stick?

Jon.

You are correct. When I buy from the UK the VAT is removed and the parts are sent to Australia tax free. I then have to pay our version of VAT when it gets here.

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