Import charges for the UK on goods from abroad post 1st Jan 2021

[jpendle]

I'm afraid that the only option here is not to do business with retailers who do not deduct VAT.

If they lose enough business then maybe they'll have a rethink.

On the odd occasion that I've come across a UK retailer who didn't deduct VAT they didn't get my money.

Regards,

John P

[swisstrains]

I'm afraid that the only option here is not to do business with retailers who do not deduct VAT.

If they lose enough business then maybe they'll have a rethink.

...........................................................
Regards,

John P

I wrote to Daniel Mrugalski the owner of DM Toys this morning asking if he had any plans to deduct the German VAT from UK orders and this was his reply.

Dear Mr ......

thank you for your email.

Our conditions are fixed, we don´t do a VAT recharge. We use the saved VAT to cover our costs for the export and the high postage costs.

Mit freundlichen Grüßen / Kind regards / Cordialement / Saludos / Met vriendelijke groet

Daniel Mrugalski
- Inhaber / Owner -

[woodbury22uk]

I'm afraid that the only option here is not to do business with retailers who do not deduct VAT.

If they lose enough business then maybe they'll have a rethink.

...........................................................
Regards,

John P

I wrote to Daniel Mrugalski the owner of DM Toys this morning asking if he had any plans to deduct the German VAT from UK orders and this was his reply.

Dear Mr ......

thank you for your email.

Our conditions are fixed, we don´t do a VAT recharge. We use the saved VAT to cover our costs for the export and the high postage costs.

Mit freundlichen Grüßen / Kind regards / Cordialement / Saludos / Met vriendelijke groet

Daniel Mrugalski
- Inhaber / Owner -

He would like us to believe that the export documentation costs and shipping charges are proportional to the cost of the order. I understand it is too much trouble, and presumably the UK is not being singled out and exports to other non-EU countries are treated the same.

[woodbury22uk]

I just paid the import charges on a £250 order from Menzels in Dusseldorf. The total INCLUDING Parcelforce clearance charge came to 20% of the original invoice value. Can't complain.

[RailGooner]

I'm afraid that the only option here is not to do business with retailers who do not deduct VAT.

If they lose enough business then maybe they'll have a rethink.

...........................................................
Regards,

John P

I wrote to Daniel Mrugalski the owner of DM Toys this morning asking if he had any plans to deduct the German VAT from UK orders and this was his reply.

Dear Mr ......

thank you for your email.

Our conditions are fixed, we don´t do a VAT recharge. We use the saved VAT to cover our costs for the export and the high postage costs.

Mit freundlichen Grüßen / Kind regards / Cordialement / Saludos / Met vriendelijke groet

Daniel Mrugalski
- Inhaber / Owner -

So DMT apply the same shipping charges to overseas orders that it applies to domestic orders and makes up the difference from the overseas customer's VAT?!?!? Yeah, right. Guess I'll be closing my account with them then. Plenty of other continental retailers to choose from who are playing me fair.

[daffy]

Just received my first order from a European retailer since Brexit, having delayed buying until time had hopefully sorted things out.

I bought two Hupac wagons from Modellbahnshop Lippe (MSL) last week and though the original MSL website screen listing gave the full price including UK VAT, by the time I reached the payment screen the VAT had clearly been removed and all I had to pay MSL was goods and delivery ex VAT, aka 'sales tax'. ($69.40)

DHL.de were the initial carriers but on UK soil this passed to Parcelforce. Both carriers give details of the import process on their webpages, with DHL for instance clearly showing that Customs duty may be levied at 3.5% and UK VAT would be due plus their disbursement fee of £11.00. These charges would be sought pre-delivery and I would receive notice of the amount. Parcelforce seem to have the same system, though their disbursement fee is of course higher at £12.00.

So I was expecting the extra bill and was quite surprised to watch the online progress of the shipment out of Germany to the UK and thence via Customs to Parcelforce UK distribution hub, then the regional hub, and finally through my front door this morning without any mention of any fees or due VAT whatsoever.

Original order was just last Saturday and it was shipped on Tuesday to arrive today, Friday. Amazing, as it's the fastest shipment I've had from them.

So will I ever get charged any VAT or whatever? 

Will the thugs from HMRC raid my house soon seeking redress? 

Will I ever be able to sleep soundly again? 



To be honest I could care less either way. . Just happy to receive the goods so speedily. And que será será

Though I'm not sure what would happen with a higher value order over £135.00 with MSL once it reached these shores. Maybe I'll find out with my next order, though that won't be for a good while yet.

[daffy]

Oh, there was one sad thing to note - it seems MSL no longer include the little bag of sweeties they have always previously put in their parcels.

[Jim Easterbrook]

Oh, there was one sad thing to note - it seems MSL no longer include the little bag of sweeties they have always previously put in their parcels.

International shipping of foodstuffs is another can of worms.

PS Or should that be kettle of fish.

[njee20]

Nothing should be due on anything under £135; so that's correct. I'm waiting on an order from the US, assuming I don't get stung for anything (as I don't quite trust the system!) I'll place a couple more £125 orders, as it works out cheaper than one large order by the time you've paid all the fees!

[maridunian]

Shapeways are now adding 20% VAT at checkout time for invoices totalling £135 (including p&p) or less.

Mike

UK 'expedited' shipping by UPS (there is no 'basic' shipping to the UK any more) is now $19.99+VAT - was $9.99+VAT last year.

Mike

[daffy]

Nothing should be due on anything under £135; so that's correct.

Thanks Nick. Does that mean no UK VAT will be due then on small value orders from MSL? That doesn't seem right. That would make MSL an attractive proposition for any new purchases below the £135 threshold, even after their €9.90 delivery charge, just as you are finding with your US orders.

[jpendle]

Just received my first order from a European retailer since Brexit, having delayed buying until time had hopefully sorted things out.

I bought two Hupac wagons from Modellbahnshop Lippe (MSL) last week and though the original MSL website screen listing gave the full price including UK VAT, by the time I reached the payment screen the VAT had clearly been removed and all I had to pay MSL was goods and delivery ex VAT, aka 'sales tax'. ($69.40)

So will I ever get charged any VAT or whatever? 

Will the thugs from HMRC raid my house soon seeking redress? 

As I understand it, MSL have made the mistake, or broken the law, by not charging you UK VAT and then passing that on to HMRC.
The VAT man might raid MSL, but probably not 
You might get a begging letter from MSL asking for the missing VAT though 

John P

[daffy]

Just received my first order from a European retailer since Brexit, having delayed buying until time had hopefully sorted things out.

I bought two Hupac wagons from Modellbahnshop Lippe (MSL) last week and though the original MSL website screen listing gave the full price including UK VAT, by the time I reached the payment screen the VAT had clearly been removed and all I had to pay MSL was goods and delivery ex VAT, aka 'sales tax'. ($69.40)

So will I ever get charged any VAT or whatever? 

Will the thugs from HMRC raid my house soon seeking redress? 

As I understand it, MSL have made the mistake, or broken the law, by not charging you UK VAT and then passing that on to HMRC.
The VAT man might raid MSL, but probably not 
You might get a begging letter from MSL asking for the missing VAT though 

John P

Yes, that makes sense. Maybe they (or HMRC) might get wise or wake up if I place lots of little orders, but until that day........ 

[njee20]

Yes, basically John has it. They should be collecting UK VAT on orders below £135 on behalf of HMRC. This feels like a huge, glaring hole frankly, as there must be literally thousands of retailers globally who are not doing this. £135 is a fairly useful limit too!

I can't see how HMRC could even go after MSL (unless they wanted to make an example of them, but even then I'm sure there are going to be far more lucrative targets than a German model retailer!), so I'm hopeful that this could conceivably be the first Brexit benefit, even if it means someone is doing something unlawful!

The best are the ones who remove local VAT and don't collect UK VAT. An order from Digikeijs worked out about 40% cheaper than buying in the UK!

I think the key thing is that there's no mechanism for HMRC to intercept these parcels, I guess they have all got customs forms on them, but I'm not sure if there's a moratorium on collecting VAT on these orders at the moment. There must be tens of thousands of them coming in.

[daffy]

Thanks again Nick.

I'm rather partial to loopholes. Tastier than the aforementioned missing MSL sweeties!