Brexit - additional duty to pay (UK to EU shipping)

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MiniMpi
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Re: Brexit - additional duty to pay (UK to EU shipping)

Post by MiniMpi »

H0rati0 wrote: Wed Jan 20, 2021 12:46 am Sale pickup arrived at last, happy to find it is a keeper as I was a little uncertain before I got my hands on it.
IMG_1043.jpeg
Delighted it's arrived, looks fantastic :clap:
How did you get on with duties & tax's ?
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Re: Brexit - additional duty to pay (UK to EU shipping)

Post by H0rati0 »

MiniMpi wrote: Wed Jan 20, 2021 1:29 am
H0rati0 wrote: Wed Jan 20, 2021 12:46 am Sale pickup arrived at last, happy to find it is a keeper as I was a little uncertain before I got my hands on it.
IMG_1043.jpeg
Delighted it's arrived, looks fantastic :clap:
How did you get on with duties & tax's ?
No problems with VAT, the only issue was delayed processing at customs, that took 3 days but I guess that will settle down. From my invoice I see that CW have a German VAT registration so they are doing it right.

More in the CWLOTD thread!
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Re: Brexit - additional duty to pay (UK to EU shipping)

Post by A1soknownas »

H0rati0 wrote: Wed Jan 20, 2021 10:24 am
MiniMpi wrote: Wed Jan 20, 2021 1:29 am
H0rati0 wrote: Wed Jan 20, 2021 12:46 am Sale pickup arrived at last, happy to find it is a keeper as I was a little uncertain before I got my hands on it.
IMG_1043.jpeg
Delighted it's arrived, looks fantastic :clap:
How did you get on with duties & tax's ?
Otherwise, it does seem to be working well so far.

No problems with VAT, the only issue was delayed processing at customs, that took 3 days but I guess that will settle down. From my invoice I see that CW have a German VAT registration so they are doing it right.

More in the CWLOTD thread!
What are they doing with the spare 1%? Would that balance out the circumstances where the rate is higher than 20%.

I assume that eventually they will add the respective rate to the basket price.
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Re: Brexit - additional duty to pay (UK to EU shipping)

Post by JAFO »

Personally, I think CW are accepting a slight reduction in income. (or maybe an increase in some cases)

Take a sale "super compressor". The UK figures are easier, at £600 cost.

If they sell a UK watch with 20% VAT, it's £500 for the watch, and £100 VAT
If they sell to Germany with 21% VAT, it's £495.87 for the watch and £104.13 German VAT, so CW lose £4.13. Someone said they are registered for German VAT so I expect this is the deal - (Alternatively, they might charge £500 for the watch plus 21% VAT - £105.00, and the sale price would then be £605)
If they sell to USA do they charge the dollar equivalent of £600, or £500? I think all states are different, so it could be either. Some have no sales tax at all.

I don't know if they charge an add-on for overseas shipping

[edit - it's subsequently pointed out that Germany has 19% VAT not 21%. I am not sure if that changes the price actually paid, or just the VAT calculation. ]
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Re: Brexit - additional duty to pay (UK to EU shipping)

Post by A1soknownas »

JAFO wrote: Wed Jan 20, 2021 2:25 pm Personally, I think CW are accepting a slight reduction in income. (or maybe an increase in some cases)

Take a sale "super compressor". The UK figures are easier, at £600 cost.

If they sell a UK watch with 20% VAT, it's £500 for the watch, and £100 VAT
If they sell to Germany with 21% VAT, it's £495.87 for the watch and £104.13 German VAT, so CW lose £4.13. Someone said they are registered for German VAT so I expect this is the deal - (Alternatively, they might charge £500 for the watch plus 21% VAT - £105.00, and the sale price would then be £605)
If they sell to USA do they charge the dollar equivalent of £600, or £500? I think all states are different, so it could be either. Some have no sales tax at all.

I don't know if they charge an add-on for overseas shipping
Agreed, there are many examples where the rates will be both higher and lower and it may not always be in their favour.

I thought Germany was 19% and not the 21%. Let's see what happens when it is 25 or 27!
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Re: Brexit - additional duty to pay (UK to EU shipping)

Post by H0rati0 »

A1soknownas wrote: Wed Jan 20, 2021 2:58 pm
JAFO wrote: Wed Jan 20, 2021 2:25 pm Personally, I think CW are accepting a slight reduction in income. (or maybe an increase in some cases)

Take a sale "super compressor". The UK figures are easier, at £600 cost.

If they sell a UK watch with 20% VAT, it's £500 for the watch, and £100 VAT
If they sell to Germany with 21% VAT, it's £495.87 for the watch and £104.13 German VAT, so CW lose £4.13. Someone said they are registered for German VAT so I expect this is the deal - (Alternatively, they might charge £500 for the watch plus 21% VAT - £105.00, and the sale price would then be £605)
If they sell to USA do they charge the dollar equivalent of £600, or £500? I think all states are different, so it could be either. Some have no sales tax at all.

I don't know if they charge an add-on for overseas shipping
Agreed, there are many examples where the rates will be both higher and lower and it may not always be in their favour.

I thought Germany was 19% and not the 21%. Let's see what happens when it is 25 or 27!
Germany is 19%.

In the longer term they are going to have to compute VAT on a per country basis where they have VAT registrations or ship ex VAT and leave to their customer's responsibility.
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Re: Brexit - additional duty to pay (UK to EU shipping)

Post by MiniMpi »

Just purely on my own dealings of late, bought a second hand CW from a nice guy on the forum.
It arrived to me yesterday in Ireland with no duty or VAT to pay on it.
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Re: Brexit - additional duty to pay (UK to EU shipping)

Post by Viognier »

JAFO wrote: Wed Jan 20, 2021 2:25 pm
If they sell to USA do they charge the dollar equivalent of £600, or £500? I think all states are different, so it could be either. Some have no sales tax at all.

I don't know if they charge an add-on for overseas shipping
Canada and USA would be the UK price less VAT. The importing country charges taxes and duty according to their province or state of residence (with USA having a portion that is exempt).
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Re: Brexit - additional duty to pay (UK to EU shipping)

Post by H0rati0 »

MiniMpi wrote: Wed Jan 20, 2021 4:12 pm Just purely on my own dealings of late, bought a second hand CW from a nice guy on the forum.
It arrived to me yesterday in Ireland with no duty or VAT to pay on it.
I am not sure how you are pulling this off Ferg, but I hope that is a sign of things to come. Not banking on it though....

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Re: Brexit - additional duty to pay (UK to EU shipping)

Post by A1soknownas »

MiniMpi wrote: Wed Jan 20, 2021 4:12 pm Just purely on my own dealings of late, bought a second hand CW from a nice guy on the forum.
It arrived to me yesterday in Ireland with no duty or VAT to pay on it.
That is good news! Hopefully the ability to put a different value or the reduced transparency of personal rather than business sales will help.

If not it could be a cheap flight and hide it in the luggage for a really expensive watch!
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Re: Brexit - additional duty to pay (UK to EU shipping)

Post by Fat-Sam »

I was selling a watch to someone in France amd he’s basically pulled out now he knows he will have to pay 20% French vat on top. Always happy to pay my taxes but it annoys me that we pay them more than once in the same item.

Can see Ireland becoming a loophole for goods being sent to eu from what others are saying.
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Re: Brexit - additional duty to pay (UK to EU shipping)

Post by H0rati0 »

Fat-Sam wrote: Thu Jan 21, 2021 2:20 am I was selling a watch to someone in France amd he’s basically pulled out now he knows he will have to pay 20% French vat on top. Always happy to pay my taxes but it annoys me that we pay them more than once in the same item.

Can see Ireland becoming a loophole for goods being sent to eu from what others are saying.
Yep, it's the SH market where VAT bites. New goods carrying VAT have a clear path tom paying only once, but SH goods crossing borders will be hit with import VAT even after VAT was paid in the home country. .gov says luvvly jubbly.
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Re: Brexit - additional duty to pay (UK to EU shipping)

Post by JAFO »

There was a report yesterday, I forget where, saying second hand watch sales to the EU had virtually stopped for traders as well, as they now have to account for vat on the full sale price, rather than just on the margin.
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Re: Brexit - additional duty to pay (UK to EU shipping)

Post by RichM »

^^^ Yes, it's going to be true for all businesses now in/out of the EU. It's going to get worse and worse.

Maybe in the long run there will be work rounds but all at a cost to the business and purchaser. Short term is going to be a nightmare.

Sorry - I don't mean to open a Brexit/Remain debate (there are plenty of those elsewhere!), just to reflect that trading with the EU is now not as easy as it was sadly.
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Re: Brexit - additional duty to pay (UK to EU shipping)

Post by JAFO »

Does this margin VAT affect all trader sales, as that would push up any used watch sale price from a dealer, wouldn't it? Or is it just for exports.

Not quite watches, but I believe cars have the same "VAT on the margin" scheme. Does anyone know whether this will have an impact on car sales as well. I appreciate we won't be selling many used cars to the EU. Here's a note on changes affecting NI. Or not. Maybe NI/ROI can set up some tasty enterprise to manage EU/UK trading.

https://www.am-online.com/news/latest-n ... ar-dealers
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