Bringing goods from the EU

[Noel]

won’t this potentially make some things cheaper for us? German VAT is 19% so we won’t pay that any longer but instead pay U.K. VAT on import.

If MWSt is 19% and UK vat is 20%?
Add handling/admin charges as well.

 

[jcassidy]

The UK left the EU for cultural and political reasons, not economic. So anytime anyone says "won't it be cheaper?", the answer is probably no. At least, not in the short or even medium term.

won’t this potentially make some things cheaper for us?

 

[billw]

If MWSt is 19% and UK vat is 20%?
Add handling/admin charges as well.

Yeah...... don't ask how I forgot that 20 was higher than 19

 

[Richard_C]

And UK vat is? Add the handling charge and factor in a delay.

 

[Rorschach]

For smaller items imported that don't attract a customs charge it could indeed be cheaper.

 

[Noel]

For smaller items imported that don't attract a customs charge it could indeed be cheaper.

Any examples? I certainly can’t think of anything that would be less expensive.

 

[Rorschach]

Any examples? I certainly can’t think of anything that would be less expensive.

Well there would be no VAT on the item so that saves approx 20% and I assume as with other imports there would be a value threshold before duty/VAT would be charged at this end.

 

[billw]

Well there would be no VAT on the item so that saves approx 20% and I assume as with other imports there would be a value threshold before duty/VAT would be charged at this end.

The exemption only applies to goods brought in on your person, not sent through the post though. The postal threshold is much lower, I think that was as a result of mail order DVD/CD places setting up in Jersey and sending stuff across VAT-free using Royal Mail.

 

[Rorschach]

The exemption only applies to goods brought in on your person, not sent through the post though. The postal threshold is much lower, I think that was as a result of mail order DVD/CD places setting up in Jersey and sending stuff across VAT-free using Royal Mail.

That's why I said smaller items that would be below the threshold (either posted or carried).

 

[gcusick]

won’t this potentially make some things cheaper for us? German VAT is 19% so we won’t pay that any longer but instead pay U.K. VAT on import.

....which is 20% ??

 

[Noel]

Well there would be no VAT on the item so that saves approx 20% and I assume as with other imports there would be a value threshold before duty/VAT would be charged at this end.

Why would there be no Vat/sales tax?

 

[bushwhaker]

Резюме за UK-EU TCA
https://ec.europa.eu/info/sites/info/files/value-added-tax_en.pdf

 

[Rorschach]

Why would there be no Vat/sales tax?

Because we are out of the customs union.

 

[RobinBHM]

Why would there be no Vat/sales tax?

my understanding is that VAT reg businesses will have to pay VAT and reclaim it back
non VAT businesses and the private imports I wouldve though would have to pay VAT to HMRC? -like any other purchase in the UK.

 

[RobinBHM]

Interesting how covid deniers appear also to be pro brexit.......

PS covid is real and no the deal is not done....guess what starts in Jan: negotiations for services

 

[Rorschach]

Interesting how covid deniers appear also to be pro brexit.......

How did you come to that conclusion?

 

[billw]

my understanding is that VAT reg businesses will have to pay VAT and reclaim it back
non VAT businesses and the private imports I wouldve though would have to pay VAT to HMRC? -like any other purchase in the UK.

Shouldn't be the case, exports outside the EU are exempt from VAT and since we're now outside the EU then anything sent from there should be without tax. We arent really different from anywhere else in the world in their eyes now. Sure we'll have to handle paying tax and duty in the UK which we didn't before.

Time to send a load of stuff to Gibraltar and buy a large suitcase.

 

[RobinBHM]

Shouldn't be the case, exports outside the EU are exempt from VAT and since we're now outside the EU then anything sent from there should be without tax. We arent really different from anywhere else in the world in their eyes now. Sure we'll have to handle paying tax and duty in the UK which we didn't before.

Time to send a load of stuff to Gibraltar and buy a large suitcase.

My understanding is that goods aren't exempt from VAT...it has to be paid to HMRC.

I guess you mean EU sellers will invoice net of VAT (which for B2B they always did anyway....which was an advantage for cash flow over a UK purchase).

 

[RobinBHM]

That's why I said smaller items that would be below the threshold (either posted or carried).

There is no threshold.

 

[billw]

My understanding is that goods aren't exempt from VAT...it has to be paid to HMRC.

I guess you mean EU sellers will invoice net of VAT (which for B2B they always did anyway....which was an advantage for cash flow over a UK purchase).

Sorry I meant they are exempt from *EU* VAT.