Brexit - VAT Charges on purchases imported into the UK

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Brexit - VAT Charges on purchases imported into the UK

Post by JAFO »

There is another thread on the payment of VAT for purchases into the EU from the UK.

Rather than conflate things, I have added a new thread about purchases from overseas. I had posted a couple of thoughts in the other thread, thinking it was about VAT for imports either way.

Well, I just spent an enjoyable? half hour looking for information, which seems very hard to come by. Most searches find information about business trading, but finding information about personal purchases from foreign individuals (rather than businesses) is a bit trickier. Most information doesn't reflect the position as of 1/1/21 - ie post Brexit.

It makes it hard to buy items from personal sellers if you find you have to pay VAT on top, as the seller has already paid VAT. With a business you might pay UK VAT, but the seller should deduct his VAT first, and there might be no net difference. I think it's always been the cases that purchases from US and Japan for instance incurred a 20% VAT charge. Non EU countries such as Switzerland and Monaco were the same, but they might reduce their selling price by an amount to reflect their own local VAT. Previously when buying from all EU countries there was no charge at all.

Now we have left the EU, the EU countries become just like any other country - Or do they, that's the question?
If VAT is added to everything, then purchases from private sellers are made even more expensive, as we have to pay 20% on items where the seller has already paid VAT.

It's one thing trying this out with a £60 Chinese watch, as all it might cost is £20 extra - £12 VAT plus £8 RM Admin. It's a bit different importing a £3000 watch from the EU, and finding you get a £600 VAT bill.

But I just bought an Invicta from Invicta Europe for 120 Euros, and didn't get charged anything. So was that because Invicta dealt with it, or because it was under £135, or just because UK customs forgot to charge.

Maybe someone has specific knowledge of all this, which would be helpful. Maybe someone knows how CW deal with their sales. I think that;s what prompted the other thread.

Anyway, here's a few links. From my point of view, I am now assuming that any purchase from overseas, including personal sales, will attract 20% VAT, unless the seller has an arrangement to mitigate it.


this might be the latest info - note that it refers to paying VAT on gifts, so I imagine a purchase (rather than a gift) from a private seller will also be included, but maybe not
https://www.gov.uk/government/publicati ... post-users

previous government notice that says it is out of date!
https://www.gov.uk/goods-sent-from-abroad

some new guidance
https://www.gov.uk/guidance/vat-and-ove ... -in-the-uk
note that this says normal rules apply in UK mainland to purchases from the EU, but doesn't apply in NI.

further report
https://assets.publishing.service.gov.u ... erseas.pdf

current ebay advice to sellers
https://www.ebay.co.uk/help/listings/de ... eu?id=4650

current ebay advice to buyers
https://www.ebay.co.uk/help/buying/post ... uy?id=4057

royal mail info about exports, just as a note.
https://www.royalmail.com/business/inte ... uties-paid

a press comment
https://www.theguardian.com/politics/20 ... e-than-390

even traders are confused
https://tamebay.com/2021/01/have-vat-ch ... field.html
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Re: Brexit - VAT Charges on purchases imported into the UK

Post by H0rati0 »

Check out Watchgecko's guidance. I believe they have it right and explain the alternatives quite well.

https://www.watchgecko.com/pricing-on-the-website
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Re: Brexit - VAT Charges on purchases imported into the UK

Post by JAFO »

@H0rati0. Thanks for that. Maybe that would be useful in the other thread as well, if you haven't already put it there.
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Re: Brexit - VAT Charges on purchases imported into the UK

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JAFO wrote: Fri Jan 15, 2021 2:44 pm @H0rati0. Thanks for that. Maybe that would be useful in the other thread as well, if you haven't already put it there.
will do.
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Re: Brexit - VAT Charges on purchases imported into the UK

Post by Bahnstormer_vRS »

Interesting article on WatchPro today relating to the second hand retail market e.g. Watchfinder, Xupes, Chrono24 et al;-

Brexit deal builds barrier between British and EU’s pre-owned watch businesses


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Re: Brexit - VAT Charges on purchases imported into the UK

Post by Bahnstormer_vRS »

An article on the BBC website today offering explanations on VAT and Customs Duties for imports, including gifts and second hand purchases, into the UK from the EU.

https://www.bbc.co.uk/news/business-55752541

As an aside, I received an import from the USA yesterday, which had been dispatched on 30th December, arrived in UK 4th or 5th January, but then sat between UPS and HM Customs for nearly three weeks while it was worked out that I needed to pay 20% VAT (as I expected).

Once paid it was delivered swiftly. :wink:


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Re: Brexit - VAT Charges on purchases imported into the UK

Post by H0rati0 »

Bahnstormer_vRS wrote: Fri Jan 15, 2021 3:02 pm Interesting article on WatchPro today relating to the second hand retail market e.g. Watchfinder, Xupes, Chrono24 et al;-

Brexit deal builds barrier between British and EU’s pre-owned watch businesses


Guy
Of course nothing to stop a simple extension to fix this, such as any (provable) SH item could be exempt or if bought new before 1st Jan 2021 could be exempt from further VAT since EU VAT was paid....etc

Nah, fat chance....
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Re: Brexit - VAT Charges on purchases imported into the UK

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H0rati0 wrote: Tue Jan 26, 2021 2:34 pm
Of course nothing to stop a simple extension to fix this, such as any (provable) SH item could be exempt or if bought new before 1st Jan 2021 could be exempt from further VAT since EU VAT was paid....etc

Nah, fat chance....
Nice idea, and nobody would avoid duty by misrepresenting a sale, would they? :D
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Re: Brexit - VAT Charges on purchases imported into the UK

Post by H0rati0 »

JAFO wrote: Tue Jan 26, 2021 2:46 pm

Nice idea, and nobody would avoid duty by misrepresenting a sale, would they? :D
Well, no more than before 1st Jan! But simple verification, require evidence of the actual payment for customs clearance rather than "imaginative" invoices.
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