Has anyone in the UK made a purchase from the EU for more than £135?

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What I find truly staggering is the appartant lack of awareness of the general UK public as to the impacts on small things like buying goods from Europe and the amount of time that UK citizens can spend in the EU etc. I think for most Europeans the impact was obvious and concerning. I accept that Ireland is a special case being so closely tied economically and culturely to the UK, but general awareness across the EU was pretty high I feel.

Hopefully things will settle down and some practical agreements will come into place in the near term.

In the interim all my € are staying in € (until l find that thing I absolutlely have to have in the UK 😀 )

The media in the UK has done a great job of demonising the E.U. and down playing any negative effects of Brexit.

The real life inconvenience and costs associated with separating ourselves from our closest and biggest trading partners will be a heavy and repeated blow.

I hope there will be some positives eventually.
 
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I wish I shared your optimism @redzer007 , unfortunately I don't see how things will be improved. Sure IT automation, better border facilities, more customs personnel etc will speed up administrative delays, but they won't remove the fundamental underlying issues, which are the increase in trading related costs and paperwork caused by Brexit and the UK becoming a Third Country for EU trading purposes.

The UK can't just waive VAT charges for the EU, it would have to offer the same to other countries such as the USA, otherwise I suspect it will fall foul of WTO rules,. The alternative would be to join say the EFTA or EEA, which has been explicitly ruled out. It is, to put it politely, a complete and utter schmozzle, and an illustration of what happens when you put politicians who have no real world practical experience in charge, and who then deliberately ignore expert advice for populist reasons.
 
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I find this thread very informative (as an EU buyer), so let's not get any more political before this thread goes the same way as the previous one.
 
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Presumably, private sellers in the EU dont have to charge the VAT, so they gain an advantage over commercial dealers? Or have I got that wrong?
 
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I find this thread very informative (as an EU buyer), so let's not get any more political before this thread goes the same way as the previous one.
I hope my comments won't be viewed as political, as they were mean't to be, more a reflection on the competence or otherwise of those charged with implementing it. But I take your point 😀

@TimeODanaos - private sellers do have a bit of an advantage, but, as you might guess, its a bit more complicated than that - it depends for the commercial dealer, whether the goods are physically inside or outside the UK at time of supply, whether the value is more than £135, whether the sale is to a business or to an end-consumer, and whether an on-line market place is being used or if it is a direct sale. Let's take a common example - a direct sale from a commercial dealer in say The Netherlands, to a UK customer, i.e. you see a watch on their website and call them up to buy it:

- EU sellers must now charge UK VAT on their sales to UK customers at the point of sale
- They will now have on-going U.K. VAT compliance obligations
- There is no minimum VAT registration threshold for EU sellers, so registration for UK VAT is now mandatory

So if you are the Dutch dealer, why would you bother "distance" selling to a UK customer ? And indeed, a number of EU businesses have already said they have stopped selling to the UK. The private seller has an advantage as they won't have to go through all the above, but as per my earlier post, you will have to pay Vat and possibly customs, once the goods arrive into the UK

I suspect we will see "shopping trips" (aka smuggling) to Europe of the type we used to see in the 70s's..after all, I'm sure everyone who bought a Rolex or Omega whilst on holiday in the US (well, pre-lockdown), always declared it and paid the charges, on arrival at Heathrow?

PS - did your item ever arrive, and did you have any charges?
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Thanks @Mark020 and @khanmu - the impact for B2B and B2P transactions looks bad, short term at least. I didn't know even the smallest businesses had to be signed up. Also, I guess everyone understands taxes being added to the bill at POS, but a system where couriers arrive asking for slightly random and unannounced additional sums can't be good.

My own experience so far was receiving a c.2k watch in England in a private transaction from Belgium. No taxes or charges. Unfortunately, I can't contribute helpful knowledge to the discussion, because I bought in December and received in January. It was a worry at the time, but seems OK now. Problem is, I'm unable to tell whether that was i) Brexit cut-off working as prescribed ii) Purely P2P transaction, correctly treated iii) So much New Year confusion I got away with something by accident.* So, I'm still very interested in hearing any live experiences!

*I suspect it might have been this one. There's a great BBC news podcast whose intro includes.a remark made by an East Ender character, "No-one's got a *** clue, what Brexit is!" Ive got no politics here, but I think they got that one right. 😉
 
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What I find truly staggering is the appartant lack of awareness of the general UK public as to the impacts on small things like buying goods from Europe and the amount of time that UK citizens can spend in the EU etc.
I suspect that very few private individuals in UK are buying items direct from another country - perhaps 5% - so, it wouldn't be a concern to most. As a group, we are a bit odd because we probably do that a lot.

Let's take a common example - a direct sale from a commercial dealer in say The Netherlands, to a UK customer, i.e. you see a watch on their website and call them up to buy it:

- EU sellers must charge UK VAT on their sales to UK customers at the point of sale
- They will have on-going VAT compliance obligations

- There is no minimum VAT registration threshold for EY sellers, registration for UK VAT is now mandatory

So if you are the Dutch dealer, why would you bother "distance" selling to a UK customer ? And indeed, a number of EU businesses have already said they have stopped selling to the UK. The private seller has an advantage as they won't have to go through all the above, but as per my earlier post, you will have to pay Vat and possibly customs, once the goods arrive into the UK
Just on the point I have put in bold - the EU intend to bring in a law that sellers outside the EU (USA, for example) will collect the VAT for the buyer's country. I've put a link to it before but it was on a deleted thread. It should have come in last summer but will now be this summer. So, if I understand the new EU law correctly:
- USA sellers (for example) must charge EU VAT on their sales to EU customers at the point of sale
- They will have on-going EU VAT compliance obligations


I can't find the official EU document any more but, this page tries to explain it - bear in mind, I'm not an international VAT specialist🙄:
https://www.avalara.com/vatlive/en/vat-news/eu-2021-e-commerce-vat-package.html#:~:text=Implications: From July 2021, EU,on shipments below €150.

Regards, Chris
 
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So if you are the Dutch dealer, why would you bother "distance" selling to a UK customer ? And indeed, a number of EU businesses have already said they have stopped selling to the UK
Do those EU businesses not sell to any countries outside of the EU then? Or is there something particular about UK rules that makes it more onerous?
 
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I suspect that very few private individuals in UK are buying items direct from another country - perhaps 5% - so, it wouldn't be a concern to most. As a group, we are a bit odd because we probably do that a lot.

I'm not so sure - it will be interesting to see. Put together everyone who simply must have that German camera, that Italian jacket, that Dutch bike accessory, and folks like that lady in Mark020's BBC report, and that may become more than 5%. (Although not more than 50% 😗 sorry.)
 
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Thanks @Mark020 and @khanmu - the impact for B2B and B2P transactions looks bad, short term at least. I didn't know even the smallest businesses had to be signed up. Also, I guess everyone understands taxes being added to the bill at POS, but a system where couriers arrive asking for slightly random and unannounced additional sums can't be good.

My own experience so far was receiving a c.2k watch in England in a private transaction from Belgium. No taxes or charges. Unfortunately, I can't contribute helpful knowledge to the discussion, because I bought in December and received in January. It was a worry at the time, but seems OK now. Problem is, I'm unable to tell whether that was i) Brexit cut-off working as prescribed ii) Purely P2P transaction, correctly treated iii) So much New Year confusion I got away with something by accident.* So, I'm still very interested in hearing any live experiences!

*I suspect it might have been this one. There's a great BBC news podcast whose intro includes.a remark made by an East Ender character, "No-one's got a *** clue, what Brexit is!" Ive got no politics here, but I think they got that one right. 😉

My educated guess would be the shipment date - you purchased and had it shipped before 1 Jan, so it fell under the UK-in-the EU rules..

I completely disagree about the East Ender quote - we did know the consequences and impact, we always did, which is why the original plan was to stay in the Single Market or try to get a "Norway" style deal. That many chose to disregard or disbelieve the consequences of a limited deal (imagine if we had no deal!), is a different point, and takes us dangerously close to politics 😀
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I'm not so sure - it will be interesting to see. Put together everyone who simply must have that German camera, that Italian jacket, that Dutch bike accessory, and folks like that lady in Mark020's BBC report, and that may become more than 5%. (Although not more than 50% 😗 sorry.)

I'm not sure either but it seems a bit odd to buy those things direct as an individual. If you want a Zegna jacket, you don't buy them directly from Italy, you go to your local supplier such as Robert Olds in Bournemouth, UK. Of course, a very large proportion of the UK population sadly don't have the disposable income for such things.

The lady in the BBC report seems naive, to say the least. I wonder which brand doesn't have a UK outlet she could have bought from? I dislike the way she just returned them even though it was her mistake so, the company ends up paying postage.

Cheers, Chris
 
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Do those EU businesses not sell to any countries outside of the EU then? Or is there something particular about UK rules that makes it more onerous?

It depends - the US for example has no national sales tax, and different sales taxes in each State. Generally, if you are considered to have a "nexus" (usually,a physical presence sales affiliates/agents, inventory stored etc), then you have to register, charge and remit sales taxes as per the sales tax policy for the particular State. If you are just a business selling to someone in the US from your EU or UK web site, and with no US nexus, then you don't need to register for a sales tax permit or collect the sales tax. However the buyer will still likely have to pay on import into the US. So, yes, its a UK specific thing...
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What no one ever seems to think or remember is that any difficulties in goods entering the UK are directly under the UK control, and as such could be made as easy or hard as the UK authorities decreed.

The UK could, for example, follow the Hong Kong model and become a free port - removing duties and vat on all imports. (Would have to remove vat altogether). Some argue this would give a massive boost to our economy as the volume of trade would rise and make up for lost VAT - which is a tax universally agreed disproportionately affects the poor.

Of course there may be consequences not foreseen, and our neighbours would definitely not want a Freeport on their doorstep, and I doubt government would surrender the control that VAT compliance gives them over every person in the UK.

if you think about the possible effect on the second hand watch trade - it would leap in size, along with all the ancillary businesses like watchmakers strap makers, even shops. Imagine the effect across all tradable goods without the friction of vat and duty - and those awful vat returns.
 
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I'm not sure either but it seems a bit odd to buy those things direct as an individual. If you want a Zegna jacket, you don't buy them directly from Italy, you go to your local supplier such as Robert Olds in Bournemouth, UK. Of course, a very large proportion of the UK population sadly don't have the disposable income for such things.

The lady in the BBC report seems naive, to say the least. I wonder which brand doesn't have a UK outlet she could have bought from? I dislike the way she just returned them even though it was her mistake so, the company ends up paying postage..

I think the numbers of people affected may be greater than you think - yes we watch collectors are odd, but I suspect there are many other odd collectors/hobbyists who buy, swap etc from the EU, as well as those folks going on holiday and bringing stuff back, the previous booze cruises, the lit goes on. Unfortunately it will also impact UK shopping - much of what you buy in UK shops comes from the EU or via the EU. Many on-line retailers have single central EU warehouses from which they dispatch goods, so prices will go up too, as either import charges will apply or to pay for new admin costs, or for new infrastructure such as warehouses in the UK, to avoid customs delays in ports...

I've spent 25 years setting up Regional and Global supply chains for companies in the consumer products, life sciences, industrial products and automotive sectors, and for US, Japanese and EU clients. Politics aside, this is the first trade deal in history which set out to make things worse, and it saddens me
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What no one ever seems to think or remember is that any difficulties in goods entering the UK are directly under the UK control, and as such could be made as easy or hard as the UK authorities decreed.

the UK could, for example, follow the Hong Kong model and become a free port - removing duties and vat on all imports. (Would have to remove vat altogether). Some argue this would give a massive boost to our economy as the volume of trade would rise and make up for lost VAT - which is a tax universally agreed disproportionately affects the poor.

of course there would be consequences and our neighbours would definitely not want a Freeport on their doorstep, amd I doubt government would surrender the control that VAT compliance gives them over every person in the UK.

but if you think about the consequences to the second hand watch trade - it would leap in size, along with all the ancillary businesses like watchmakers strap makers, even shops. Imagine the effect across all tradable goods without the friction of vat and duty - and those awful vat returns.

What, you mean like joining the largest Single market / Trading bloc in the world, very close to us, and having frictionless trading with them? 😉

The UK government could unilaterally remove VAT/customs, and whilst it might be a boost in the long term (and that's a big unproven assumption), in the short term it would destroy many of our own industries such as farming, where we don't have the scale to compete.
 
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What, you mean like joining the largest Single market / Trading bloc in the world, very close to us, and having frictionless trading with them? 😉

The UK government could unilaterally remove VAT/customs, and whilst it might be a boost in the long term (and that's a big unproven assumption), in the short term it would destroy many of our own industries such as farming, where we don't have the scale to compete.

well you may be right, but I can tell you, as a second generation farmer, that argument is a little hollow as farming was destroyed long ago. But I accept your point there are many affects, most of which I will not have thought through.

that’s why I’m not in charge😀
 
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My educated guess...
Can I just say thanks for all the time and trouble you've put into writing at length on this subject today (and not just on this thread) for the benefit of a bunch of near-strangers? Hearing from a single really knowledgeable guy is worth - well, you know: so, much appreciated. Let's see how it all pans out.
 
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An explanation why UK customers wont be getting small parts from overseas.

The frustrating thing is, as a democracy, all the UK people have to do is find a way to tell the overlords they dont want it. I have a feeling its a punishment to the British people by their overlords for voting for Brexit. One of many small punishments to say, "I told you so, serfs, next time listen to your leaders"