Changes to VAT treatment of overseas goods sold to customers from 1 January 2021

[AlanUK]

Changes to VAT treatment of overseas goods sold to customers from 1 January 2021.

This is going to cause a few issue for buying disc's from over-seas by the looks of it.

https://www.gov.uk/government/public...1-january-2021

Star Trek star William Shatner has threatened to stop selling merchandise from his online store to the UK because of costly red tape.

The Canadian actor, best known for playing Captain James T Kirk in the blockbusting sci-fi franchise, issued the warning on Twitter and apologised to fans.

He claimed the British government was seeking to make overseas sellers collect VAT on orders being sent to the UK from the New Year.

https://news.sky.com/story/star-trek...-tape-12105849

*Note to Admins and Mods, I apologise for posting this here if it is in the wrong place, I looked around and I thought this the most suitable as it is UK only area, please move to a more suitable area if required.

[DavidRoylance]

This is a conversation that has been happening in the wow thread, so thank you for bringing it out into the open.

I suspect that the Government will find a work around when they realise how much this is going to stall the movement of money. Stay posted. The view is that this won't sink wowHD but it will make importing more expensive than it is now.

[koberulz]

Australia did the same thing, was met with the same response, and hasn't budged.

[calum]

Originally Posted by DavidRoylance

This is a conversation that has been happening in the wow thread, so thank you for bringing it out into the open.

I suspect that the Government will find a work around when they realise how much this is going to stall the movement of money. Stay posted. The view is that this won't sink wowHD but it will make importing more expensive than it is now.

This the same govt building an understaffed lorry park in Kent and seeing financial hubs relocate out of the city of London?

[NormanicGrav]

Yeah this is concerning those of us who like to import anime from Japan, North America etc. but fortunately United Publications has confirmed the whole VAT won't affect their services in 2021 for the time being.

Rightstuf and other anime retailers are TBD at this point, but I'm more curious about Amazon and Play-Asia as both of them have a pre-paid VAT shipping option already.

[Modman]

Originally Posted by koberulz

Australia did the same thing, was met with the same response, and hasn't budged.

Isn't that happening across the EU as well, although, they have pushed it back to the summer of 2021?

[calum]

Originally Posted by Modman

Isn't that happening across the EU as well, although, they have pushed it back to the summer of 2021?

No.

[drush9999]

Originally Posted by Modman

Isn't that happening across the EU as well, although, they have pushed it back to the summer of 2021?

Yes

[calum]

Originally Posted by drush9999

Yes

The EU comprises of 27 member states. They have pushed back a discussion on how to eliminate VAT fraud until 2022. As a democratic trading bloc, all 27 govts would need to agree to the new approach to this. The UK is about to crash out of the EU and predominantly trade on insanely self harming WTO rules. This is the difference and this is why William Shatner posted his tweet. Jan 1st 2021 changes everything on this hellhole. Have fun

[david_blu]

So to put this into a useful example

Im not sure if this is correct so please amend:

I buy a UHD from ebay from a US seller at a cost $25.

I have to pay $25 + 20% VAT so $30 for the disc plus whatever postage needed to the UK.

Is this correct or did I read it wrong?

I imagine Amazon.com will do all the calculating like they do now if you buy from them directly and pay an import deposit.

[XGEEKEDGERX]

Originally Posted by calum

The EU comprises of 27 member states. They have pushed back a discussion on how to eliminate VAT fraud until 2022. As a democratic trading bloc, all 27 govts would need to agree to the new approach to this. The UK is about to crash out of the EU and predominantly trade on insanely self harming WTO rules. This is the difference and this is why William Shatner posted his tweet. Jan 1st 2021 changes everything on this hellhole. Have fun

The EU states were set to dissolve their personal import allowance threshold on January 1st but pushed it back to 2021, the scheme places the onus on retailers outside of the EU to collect the required VAT, account for it and then pay to the EU accordingly. Retailers are only required to register for a special TAX code in one member state to be able to sell to all other member states supposedly making it more efficient...

https://meijburg.com/news/major-chan...-commerce-2021

This was all agreed, back when the UK was still in the EU.

[malcy30]

Stops the delivery companies charging their exorbitant handling fees but you pay VAT on the full cost including shipping.

May mean though smaller retailers won’t ship to the UK as not worth the hassle and cost to register for VAT collection and passing payment to UK tax authorities.

As noted same already happened in Australia.

[XGEEKEDGERX]

Originally Posted by david_blu

So to put this into a useful example

Im not sure if this is correct so please amend:

I buy a UHD from ebay from a US seller at a cost $25.

I have to pay $25 + 20% VAT so $30 for the disc plus whatever postage needed to the UK.

Is this correct or did I read it wrong?

I imagine Amazon.com will do all the calculating like they do now if you buy from them directly and pay an import deposit.

Yes, although under the new scheme, if the disc costs $0.01 then you would also have to pay 20% on that value too as the personal import limit will be abolished.

[AlanUK]

Originally Posted by david_blu

So to put this into a useful example

Im not sure if this is correct so please amend:

I buy a UHD from ebay from a US seller at a cost $25.

I have to pay $25 + 20% VAT so $30 for the disc plus whatever postage needed to the UK.

Is this correct or did I read it wrong?

I imagine Amazon.com will do all the calculating like they do now if you buy from them directly and pay an import deposit.

Amazon will be ok if you are in UK and buy from Amazon Germany, but if you are a third party seller on Amazon Germany or a independent online shop in Germany you will have to sort this out yourself.

That is how I read it to be.

[david_blu]

Originally Posted by XGEEKEDGERX

Yes, although under the new scheme, if the disc costs $0.01 then you would also have to pay 20% on that value too as the personal import limit will be abolished.

I suppose the benefit is there wont be the extra Post Office cost for holding the damn thing when a cost is due. That always annoyed me more than paying the VAT.

[drush9999]

Originally Posted by AlanUK

Amazon will be ok if you are in UK and buy from Amazon Germany, but if you are a third party seller on Amazon Germany or a independent online shop in Germany you will have to sort this out yourself.

That is how I read it to be.

If the marketplace/third party seller sells through Amazon or Ebay they can do the VAT thing via Amazon & Ebay I believe.

[calum]

Originally Posted by XGEEKEDGERX

The EU states were set to dissolve their personal import allowance threshold on January 1st but pushed it back to 2021, the scheme places the onus on retailers outside of the EU to collect the required VAT, account for it and then pay to the EU accordingly. Retailers are only required to register for a special TAX code in one member state to be able to sell to all other member states supposedly making it more efficient...

https://meijburg.com/news/major-chan...-commerce-2021

This was all agreed, back when the UK was still in the EU.

Not the same as what's about to transpire here in Jan.

[XGEEKEDGERX]

Originally Posted by david_blu

I suppose the benefit is there wont be the extra Post Office cost for holding the damn thing when a cost is due. That always annoyed me more than paying the VAT.

For some that's the biggest bugbear about importing, I know it annoys the hell out of me.

The literature does seem to suggest that if companies don't sign up to this new system and ship stuff without collecting the VAT then the recipient is still responsible for paying the VAT costs..at least that's what I'm reading into it.

A special import arrangement will also be introduced. If the import OSS is not used, the special import arrangement allows customs agents or logistic services providers to collect and remit VAT.

[CinemaScope]

Could this be why Wow have put their prices up? If so, I wouldn't think they're coming down.

[XGEEKEDGERX]

Originally Posted by calum

Not the same as what's about to transpire here in Jan.

Really? Reading into it it seems exactly the same to me...

The 1 January 2021 UK B2C ecommerce reforms will include: All imported goods purchased will be subject to VAT – ending the current £15 VAT exemption thresholds, known as Low-Value Consignment Stock relief. Imported consignments of goods not exceeding £135 will be subject to sales (supply) VAT instead of import VAT

Online marketplaces (OMPs), where they are involved in facilitating the sale, will be responsible for collecting and accounting for the VAT.

For goods sent from overseas and sold directly to UK consumers without OMP involvement, the overseas seller will be required to register and account for the VAT to HMRC.