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British exit from EU and the VAT

The Father
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Since I have not seen it discussed that I know of, when and if Britain exits the EU, will the VAT tax go away? The atrocious 18-25% tax.
Will a British Commonwealth member have an advantage over an EU member with a watch for sale?

Your thoughts and input please

Much thanks ahead of time
 
gatorcpa
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The Father The Father
Since I have not seen it discussed that I know of, when and if Britain exits the EU, will the VAT tax go away? The atrocious 18-25% tax.
Why would that happen? VAT is a domestic tax paid within the UK on consumer purchases.

UK VAT (for this purpose at least) is the equivalent of US state sales/use tax. If you don't pay in the country of origin, then you have to pay when brought into UK.

If anything, unless they negotiate otherwise in the Brexit deal, UK residents will pay VAT on imports from the EU. This would be the same as importing from the US or any other non-EU country previous to Brexit.

Hope this helps,
gatorcpa
 
redzer007
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And selling would be more complicated as the market for sales minus duty and tax implications would be smaller (obv excluding any potential future trade deals). Genuinely dont know if there are any commonwealth specific trade agreements

I'm unsure why you think VAT would "go away"

What may be good is....visitors going to UK may be able to pick up a few bargains especially if you are willing to avoid declaring it upon returning to other home country (I'm not condoning such action)

R
 
ChrisN
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VAT is "Value Added Tax" if that makes it clearer for anyone. @gatorcpa has said most of it and how I would see it work.

If you buy a watch from the rest of the EU and that business is VAT registered (or IVA in Spain, for example) then the seller should be able to sell it without the local VAT being included as it is being exported. In that case, the price will be about the same after VAT is added.

A private seller can't do that, I suppose, so if someone in EU sells me a watch, I have to allow for the extra 20% or so - the same as we do today when buying from USA (as an example).

We wait and see...

Cheers, Chris
 
saulgoodman
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The Father The Father
Since I have not seen it discussed that I know of, when and if Britain exits the EU, will the VAT tax go away? The atrocious 18-25% tax.
Will a British Commonwealth member have an advantage over an EU member with a watch for sale?

Your thoughts and input please

Much thanks ahead of time

Thr Brits had a VAT long before the EU.
 
Epictetus
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I dread the day Britain leaves the EU, as import taxes will be introduced for goods from the UK. That's bad for me since most of the watches sold on his forum from within EU seem to come from Britain. Also, more often than not, the watches coming out of Britain on eBay seem to be in a very good condition.

Lastly, and more importantly, I am really saddened that Britain is leaving our common EU family :/
 
Wivac
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I've been pondering what purchases,if any, I should tactically make now, rather than after this pointless exercise that will impact lives and jobs, increase in prices and add unnecessary complexity (s)hits.
And then I realise I should probably concentrate on digging my defensive ditches and working out my crop rotation system for the raised beds once the Ministry of Plenty tell me what I can sow.
 
3nicewatches
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Epictetus Epictetus
Lastly, and more importantly, I am really saddened that Britain is leaving our common EU family :/
There’s still a very good chance they might not be!
 
queriver
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Don't fret UK if you end up leaving the EU, there's a big world outside the borders of the EU that you used to trade with. Us Aussies have done OK outside the fence since you dropped the Commonwealth for the EU in the '70s. We've got free trade agreements with Korea, Japan, China, US, ASEAN and a number of other countries, and we'll do a FTA with you too. The sun will still rise the morning after you leave, if indeed you do.
 
The Father
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Is there a EU VAT on all sales in addition to a specific countries taxes?
 
gatorcpa
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The Father The Father
Is there a EU VAT on all sales in addition to a specific countries taxes?
The EU is not a country and does not have a specific income tax or VAT.

Since VAT is a domestic consumption tax (again, similar to US state sales/use tax), each country within the EU sets their own rates.

If something is being sold for export outside the EU, the VAT is not charged, but the importer is subject to their home country tax.

Within the EU, the VAT rate from the country where the sale occurs is charged and the recipient does not pay VAT, although there may be other customs duties owed depending on the country.

More information here:

https://www.google.com/amp/s/europa.../taxation/vat/vat-rules-rates/indexamp_en.htm

gatorcpa
 
The Father
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I thought maybe the EU Organization was getting a vig on the transactions in Europe
 
gatorcpa
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The Father The Father
I thought maybe the EU Organization was getting a vig on the transactions in Europe
They get "dues" from the countries that can afford to pay them.
gatorcpa
 
SeanO
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queriver queriver
Don't fret UK if you end up leaving the EU, there's a big world outside the borders of the EU that you used to trade with. Us Aussies have done OK outside the fence since you dropped the Commonwealth for the EU in the '70s. We've got free trade agreements with Korea, Japan, China, US, ASEAN and a number of other countries, and we'll do a FTA with you too. The sun will still rise the morning after you leave, if indeed you do.


Yep, we should certainly take the opportunity to screw the UK like they did us for the better part of 150 years.
 
Spacefruit
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While I in no way wish to hear a political debate, for those outside UK who wonder why some people want to leave it’s this:


So while some of us feel it’s a big family, the EU is a big family with five elders who dictate all the rules.

While those elders are unelected, there is no process - no democratic process- to remove them.

As to VAT. If we had politicians with balls they would scrap VAT and turn UK into a Freeport, and remove all taxes (CGT) on trading - like Hong Kong.
 
Gav1967
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Spacefruit Spacefruit
While I in no way wish to hear a political debate, for those outside UK who wonder why some people want to leave it’s this:


So while some of us feel it’s a big family, the EU is a big family with five elders who dictate all the rules.

While those elders are unelected, there is no process - no democratic process- to remove them.

As to VAT. If we had politicians with balls they would scrap VAT and turn UK into a Freeport, and remove all taxes (CGT) on trading - like Hong Kong.
"While in no way I wish to hear a political debate" 😕😕😕😕
 
Spacefruit
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Gav1967 Gav1967
"While in no way I wish to hear a political debate" 😕😕😕😕
You are right, I meant spark off...
I was just trying to illustrate that those who wish the UK to leave are not brainless isolationist, nor do they wish ill of our EU neighbors.
 
chunkythebulldog
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gatorcpa gatorcpa
Within the EU, the VAT rate from the country where the sale occurs is charged and the recipient does not pay VAT, although there may be other customs duties owed depending on the country.

gatorcpa

That's incorrect.

On a business transaction no VAT is charged by the supplying company or reclaimed by the recipient.

On a personal transaction VAT would be charged by the supplying company and not be able to be reclaimed by the individual.
Edited:
 
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