Postal buying of tools within E.U>

[mufti]

I wonder if the latest E.U. ruling re booze and cigs will also apply to
the purchase of tools from, say, Germany or other countries?
I don't see why not.

 

[houtslager]

Well all I can say as a trade buyer with my EU VAT number I can order stuff from anywhere, with all the official paperwork I can and often do buy ex VAT.
The main advantadge is the VAT pays the postage

 

[mahking51]

Hi Houts,
I am UK VAT Registered is there a separate number or prefix or whatever for an EU Vat number?
If for instance I buy from **** GMBh, at the moment I pay the 16% German VAT, would I be exempt if I had this EU Number?
Regards
martin

 

[Losos]

Hi Mahking51
I buy from **** GMBh - When I studied their terms & conditions I got the impression that, if you were VAT registered 'anywhere' within the EU, then you could buy without paying VAT using the number of your residence country.

I am not registered for VAT, I'm currently in Czechland and buy from UK, Germany, & USA - I used to get stuff from America without sales tax or import duty but they recently tightened up on that.

BTW **** GMBh have a very helphul, English speaking sales desk.

Just noticed you said:-
If for instance I buy from **** GMBh, at the moment I pay the 16% German VAT
Have you actually bought & had to pay the 16%??

 

[houtslager]

And from 01-01-07 its 19%

 

[mahking51]

Losos,
Just checked my **** invoices and yes, I paid 16% VAT!
Should I have got this VAT free?
Martin

 

[mufti]

Sorry but I did not make my point clear. Many tools are far more expensive here than in the country of origin, but if you try to import them by post you pay duty and VAT based on the UK price of the same item, or so I have understood. The news item relating to booze and **** made the price at origin the ruling factor.

 

[Newbie_Neil]

Hi Martin

The vat numbers are the same. Supposing yours is 123 4567 89, in EU terms it's GB 123 4567 89. Whenever you are buying from another EU country you should give them your VAT number and, after verification, they should supply you free of vat.

If this is your business it doesn't actually matter whether you are charged vat or not, as you will just reclaim any vat that has been charged.

Cheers
Neil

 

[mahking51]

Neil,
Thanks for that clarification.
Regards
martin

 

[Freetochat]

Sorry but I did not make my point clear. Many tools are far more expensive here than in the country of origin, but if you try to import them by post you pay duty and VAT based on the UK price of the same item, or so I have understood. The news item relating to booze and **** made the price at origin the ruling factor.

I don't fully understand where duty comes in. I used to regularly deal in EU and the guidelines then was, if you are registered for UK VAT then you would be supplied goods from the EU VAT free and if non registered, then VAT at the suppliers rate is applied at the time of sale. Some protectionist duty tax is applied, like on the booze and cigs, but this should only be in rare circumstances. The revenue system on boose and cigs was always bound to fail at some point on the basis of 'free trade' and it is surprising that the Government is still trying to fight it. Obviously afraid of transparent taxation where we all know exactly how much is being taken from us.

 

[George_N]

I don't fully understand where duty comes in. I used to regularly deal in EU and the guidelines then was, if you are registered for UK VAT then you would be supplied goods from the EU VAT free and if non registered, then VAT at the suppliers rate is applied at the time of sale. Some protectionist duty tax is applied, like on the booze and cigs, but this should only be in rare circumstances. The revenue system on boose and cigs was always bound to fail at some point on the basis of 'free trade' and it is surprising that the Government is still trying to fight it. Obviously afraid of transparent taxation where we all know exactly how much is being taken from us.

I think that the government will try and fight this one, if only on the issue of public health ie cheaper cigarettes will tend to increase smoking whereas it has been decreasing over the past few years.

 

[andrewm]

I wonder if the latest E.U. ruling re booze and cigs will also apply to
the purchase of tools from, say, Germany or other countries?
I don't see why not.

It won't apply - because it doesn't need to. We can order anything we like from any EU country and we pay the VAT in the country of origin. (setting aside VAT registered business users discussed elsewhere). There is no other duty to pay on tools from within the EU although as many have found out there is if importing from outside of the EU.

What the ruling does is to remove the anomaly whereby if you ordered booze or **** from another EU country you were charged the UK duty when the goods came into the country. This, if my understanding is correct, is what is now being abolished so if you order a case of wine from France you will pay the French duty and not the UK duty. If you order a case of wine from California then you will _still_ have to pay UK duty on the wine in the same way as we do when importing a LN from over there.

I stand to be corrected.

Andrew

 

[Losos]

Andrew is correct but it may help to emphasize that we are talking about two (ie Qty. 2) types of tax (or duty)

For goods sourced anywhere within the EU there is only one tax to pay which is the VAT (of the source country) Unless you are VAT registered.

For goods sourced outside the EU there is both the import tax (duty) and the VAT (duty)

Martin, after re-reading the **** GMBh T&C I think maybe they are refering to customers outside the EU sorry if I misled you on that. It might be worth asking them next time you order 'tho.