Brexit - import duty price hike

[tosh]

Just curious to know if the new import duty plus handling fees that are now being added to EU goods entering the U.K. will deter any of you from buying. I read that the duty is indiscriminate whether the goods are new, used or even sent as a gift!

When I was actively collecting  my main source was from within the EU, in fact given I had to pay duty and fees for items outside the EU, I often tried hard to avoid this.

I imagine that many U.K. collectors will now seriously consider whether buying from EU states is worth it.

[Sos24]

I’m not in UK, but your question spiked my curiosity if now buying from EU was on par, still cheaper, or more costly than getting items from the US?

[dks]

I think a similar thread was posted a few weeks ago with peoples' thoughts in, if you want to see if it helps you.

[pomsbz]

If there are import duties being levied that means that there shouldn't be any VAT being charged from the EU side which should help to even things up?

[SAKTaschenmesser]

On most physical goods duty is nothing or low. I reckon it’s a bit higher on knives. Agricultural products are very high.

If you buy a new knife from a business in the EU, then:

1. The EU business should take its national VAT off the advertised price for export.
2. On import in to the U.K., duty is normally something like 6 to 8% which is not collected if the value of the knife is less than £135. It could be 0% as part of the UK/EU preferential trade agreement. Who knows, the devil is in the detail.
3. 20% U.K. VAT is added.
4. You will pay the post office or courier something like £10 as a customs clearance fee.

However, if the EU business is registered for U.K. VAT then the advertised price is what you pay and the business will collect the U.K. VAT. Something to check when buying.

If you buy a second hand knife off an individual in the EU, then there is no national VAT to be taken off and you will still have to pay U.K. import duty (if any and >£135), 20% import VAT and clearance/handling fee.

Knives are not that expensive so perhaps we have to suck it up. Take something more valuable like watches, I reckon the trading that goes on for secondhand watches between individuals in the U.K. and the EU will fall sharply.


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[Etherealicer]

If there are import duties being levied that means that there shouldn't be any VAT being charged from the EU side which should help to even things up?

Provided the store offers that, yes exactly. For me it is a good thing as VAT is fairly low in Switzerland (7.7%, compared to 19% in Germany). What might trip you up is fees.

E.g.: I order something for €120 from Germany, I actually pay about €100 for the item, then VAT comes back in, which for me is only €7.7, so far so good. But then comes the custom fee (from customs itself), which is €15, and of course because the mail-carrier handles the import, they too charge a fee (anywhere between €10 to €30 for me). So, you either ensure that your purchase stays below the minimum value for VAT (in my case that is CHF77 incl. shipping (shipping is funny, as you pay VAT twice on it)). Or you go high enough that the fees become irrelevant (and make sure that you have not a mail-carrier that calculates fees based on value).

In Summary:
- Make sure the shop you are buying from deduces VAT before shipping
- Check what is the threshold for paying VAT in your country (if you are below, you usually are golden)
- Check how much the mail-carrier charges for importing the goods for you

[pfrsantos]

[Don Pablo]

(Image removed from quote.)

Gotta pay duty to import Monty Python.

[pfrsantos]

Gotta pay duty to import Monty Python.

[dks]

Ι have bought several items from the US, Australia, China etc.

The only company I remember that seems to bother with deducting the tax on items before posting is amazon.

The rest you just pay what they are selling for in that country, and your tax and VAT and customs too when they arrive. .............

[Etherealicer]

Ι have bought several items from the US, Australia, China etc.

The only company I remember that seems to bother with deducting the tax on items before posting is amazon.

The rest you just pay what they are selling for in that country, and your tax and VAT and customs too when they arrive. .............

knivesandtools.com does it

[tosh]

Those figures you quoted above are not the same as I read (BBC News)
All items above £39 face import duty. The duty is palatable compared to courier handing fees, which they then add VAT on top too.
In all honesty I can’t see me buying anything privately from outside of the U.K.
I get the impression EVERYONE is trying to recoup the enormous losses over the past 12mths. Be it imported goods or holidays.

[Nix]

Those figures you quoted above are not the same as I read (BBC News)
All items above £39 face import duty. The duty is palatable compared to courier handing fees, which they then add VAT on top too.
In all honesty I can’t see me buying anything privately from outside of the U.K.
I get the impression EVERYONE is trying to recoup the enormous losses over the past 12mths. Be it imported goods or holidays.

That is really bothersome.

I would hope that as the situation normalizes such duties would become....more reasonable.... Duties and taxes are often added to increase revenue; however, if such additional fees suppress the market, the exact opposite can happen and revenues may drop. After-awl, a 20% VAT applied to £0 in sales is pretty close to zero revenue realized.

Usually, clever economists will try to adjust taxes and duties to hit a sweet spot....in the government's interest. Hope the situation improves for y'awl! 

[SurgeUk]

I'm sure you awl will have probably checked this out previously  but, just in case anyone hasn't 

https://www.gov.uk/duty-free-goods/declaring-goods

This is the online declaration service that HMRC (Revenue people for those not of this sceptered isle)

This is how passengers are now encouraged to pay for goods (over their allowance) when entering the UK from anywhere (including the EU)

It should be noted that this applies to goods actually carried on the person/luggage and NOT postal imports as your £390 personal allowance only applies if "carried by you"

It does give an indication of the likely VAT, Customs and or Import duties etc. It applies all the appropriate charges so that you can walk into the Green Channel (nothing to declare) without having someone like me take your prized goods.

You can play around with it and, as long as you stop before the "pay now" button then, there's no harm done.
If you really want something to send you off to sleep try the UK Trade Tariff 

[greenbear]

There have been numerous stories in both the local and national press of additional charges being added. One that sticks in my mind was an £80 "fee" for delivery of a £120 coat.

I suspect there are some companies who are acting outside the guidelines on an opportunistic basis, and I would suggest caution until matters have settled down, which will probably take several months.