Re: VAT ... it looks like it's going to be difficult.


Ralph
 

With reference to the VAT Question –

 

Does anyone know what the situation is now with Kuhne Electronics (DB6NT) modules please.

 

A belated HNY Too.

73

Ralph G4ALY      

 

Sent from Mail for Windows 10

 

From: Andy
Sent: 05 January 2021 13:33
To: UKMicrowaves@groups.io
Subject: Re: [UKMicrowaves] VAT ... it looks like it's going to be difficult.

 

Indeed Robert and the same process is to be adopted by the remaining EU member states on July 1st 2021.  It seems the UK has gone early with the change.

 

I believe your vendor could declare the item as a gift on the customs form and the correct prices and then you pay the VAT, duty and a fee to the PO for handling the taxes. If he sends it via TNT/FedEx they will also handle collecting the taxes etc.  In both those cases, instead of him charging you and collecting the VAT and then paying HMRC, you pay a VAT free price to him and pay the taxes and handling charge to the shipping agent.

 

As to whether this will work, who knows but eBay is listing changes to how it will work, select help then type VAT and have fun reading what they say.

 

"

Changes to VAT treatment of imports into the UK

The UK VAT rate is 20%.

From 1 January 2021, the UK will introduce a new model for collecting VAT on imports.

The changes at a glance

  • eBay will collect and remit VAT on orders up to a value of £135 imported into the UK and sold to consumers. There will no longer be a VAT exemption for small consignments up to £15.
  • In cases where the seller is a non-UK business and the goods are already in the UK, eBay will collect and remit VAT for goods sold to consumers within the UK, regardless of their value.
  • If the buyer is a UK VAT-registered business and provides their valid UK VAT registration number, eBay will not collect UK VAT and instead the responsibility to account for VAT will switch to the UK VAT-registered business customer.
  • All sellers listing on eBay.co.uk will have to provide a gross price and separate VAT rate, so that eBay can determine the correct amount of VAT to collect from consumers. For non-EU/UK sellers, unless you have included UK or EU VAT in your pricing calculations, the VAT rate will usually be 0%.
  • All prices on eBay.co.uk will be displayed inclusive of UK VAT.
  • Where eBay is responsible for collecting VAT on orders sent to a UK delivery address, this amount will also be shown separately at checkout.

"

 

I'm happy to be corrected if I'm wrong.

 

Andy

 

 

 

 

From: UKMicrowaves@groups.io <UKMicrowaves@groups.io> on behalf of Robin Szemeti - G1YFG <robin@...>
Sent: Tuesday, January 5, 2021 5:07 AM
To: UKMicrowaves@groups.io <UKMicrowaves@groups.io>
Subject: [UKMicrowaves] VAT ... it looks like it's going to be difficult.

 

Well, having had a guy I buy aerial parts off in Germany decline to supply because of VAT .. I did a bit more digging.

 

It turns out, that while I thought he was wrong .. he's actually right ... any small business or individual, anywhere in the world is now required to register for UK VAT if they want to sell small ( less than £135 ) items to the UK.

 

This is absolutely barking mad!  I can't see small suppliers in the USA wanting to register for UK VAT for a handful of sales.  The option of sending it in without VAT being charged at source and then having it collected by UPS/Fedex/whatever has been removed it appears.

 

This means things like small PCBs for projects like the ones I have ordered for 122GHz from Australia in theory either the amateur in Aus either registers for UK VAT or he cannot send them.

 

This really has not been thought through ... or maybe it has (in order to make sure there are no leaks through which the Chinese suppliers will slip) and this is just collateral damage the powers that be think is acceptable.


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Redpoint Consulting Limited

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