BREXIT potential UK VAT implications.

[themoudie]

I apologise to all non-UK based members of the forum to whom this may not affect. But, you may still wish to read the BBC article for information.

This revised method for collecting VAT on imported goods from the EU that has been agreed as part of the UK-EU Brexit agreement, may cause problems for us UK based owners of Ducatis wishing to purchase spare parts from an EU country supplier. It may also affect the ability of spares suppliers in the UK to obtain parts from their suppliers in the EU.

It would also appear that the carriers have already, or will in the near future, be increasing their charges for shipping items from the EU to UK or vice versa.

This is a direct link to the BBC website and their article: Brexit_UK-EU_VAT_charging_changes

I have no professional qualification or interest in this, just an interest as an Italian motorcycle rider.

Good health for 2021 and beyond, Bill

[blethermaskite]

Yes Bill......and then add the complete screw up of N.Ireland which is now "half in" or "half out" of the EU meaning bits for Ducati's or any other vehicle for that matter coming from anywhere else in the UK look like they will have to go through some sort of customs clearance with no doubt extra cost implications and in some case's a probable refusal to send to N.I at all due to the extra complications, my Morris motors club have already advised me "for now" they will no longer be supplying parts to N.I.!......last time I looked N.I. was part of the UK but maybe not anymore??????? I'm just confused
Cheers from over the border?
George

[themoudie]

Aye George,

Good to read from you. Good health for 2021 and beyond to you and yours.

The whole Brexit thing is a boorach, I think that it has been obvious that these changes would be coming regardless of "Deal!" or No Deal!" and the political pedantic semantics haven't helped anyone.

I suspect that the "Devil in detail" hasn't even started yet and that there are "business" opportunities for many in the know.

For the time being, I would suggest that you give the Hermes service a wee looksee. They still appear to consider NI as UK! And getting them to pick up the parcel directly from your supplier, rather than the supplier despatching the package may be a way to circumnavigate specific suppliers.

Still wrestling with carb on the 450! How are you getting on with the Dunstall? Pictures would be nice, if you could manage.

I am thinking about a Creasey 'Special'!

Bill

[Duccout]

Still wrestling with carb on the 450!

I've given up for now, it is just so cold that no air-cooled engine is going to be happy running in this weather, and the accuracy of any jet changes are going to be affected by the cold.

[Duccout]

Looking at the article, the new VAT rules apply to every country in the world, and were brought into force on Jan 1st. It does seem strange that the Government wishes to increase our overseas trade, but has created a barrier to other countries shipping here, unless that is just the point, to help our trade imbalance by stopping imports? Whatever, no foreign shops are going to register for VAT in the UK unless they are a large concern that ships a lot of goods here.

[themoudie]

Aye Duccout (Colin?),

A good morning and a healthy 2021 to you.

No, I'm no wrestling with the carb. I have a possible solution and will just be steady away at it. Tortoise type stove in the workshop allows continued progress in spite of low temperatures.

Other machines in the fleet require attention, so I shall just persevere and post on the thread when progress has been made.

Blue sky, but cool and a slight nor'easter, so drying the place out. The grass only stopped growing just afore Xmas!

Good health, Bill

[Geordie]

I was involved in invoicing clients inside and outside the EU. Once set up, invoicing was a simple task. The EU countries and the UK all use the VAT system - only the end customer pays tax. Who receives the tax on a quarterly basis is the issue and I believe it will be determined as follows:-

When invoicing goods from a VAT registered business to a VAT registered business there is no VAT added but to a non-VAT registered customer, VAT is added.

Currently there are thresholds which are ~ €35,000 where selling to another country requires VAT added at the rate of the selling country. After that, it is required that the seller register for VAT in the receiving country.

The EU has made provision from July 2021 for a non-EU seller to register in one EU country but supply to any. This is termed the OSS - One Stop Shop.

So, if turnover is below threshold then the status quo continues, above the threshold then there is some extra declaration on a quarterly basis. As we have a free-trade agreement on goods, there should be no trade tariffs applied.

This is my interpretation and not official edict. Usual warnings apply!

[Duccout]

Thanks. I am worried that shops may decide that the paperwork is not worth it for the value of goods involved. I buy a lot of stuff from the USA and Australia and normally the post office just invoices me for the VAT, which is not charged at source, leaving the shop just a simple customs form to fill in.

[Duccout]

A further thought on this: the EU are bringing in a VAT system when a consumer who orders a product from a company outside of the EU, that company (say in Australia) must register for VAT in the EU, charge the customer the VAT, and pay it to the EU. As part of the trade deal that Britain agreed with the EU, we are following suit, and demanding that any retailer from outside the UK is obliged to charge VAT at the point of sale, and send it to HM C&E. This change is to stop the enormous VAT fraud that takes place where overseas retailers do not charge VAT, and the parcel slips through the net when arriving at the destination country, undercutting home retailers. All this makes sense......

But, what happens if I buy something from, say an Italian retailer, who neither deducts the VAT from the sale price ( so selling it to me at the Italian retail price) or sends the VAT to the UK Tax authorities, and so I am charged VAT when the goods arrive in the UK, so being charged VAT twice?

[Duccout]

BTW, if anyone in the UK has bought something from a European shop since the VAT changes, say from Jesus Guzman, did the shop reduce the price by the amount of VAT, or did they charge you VAT at the local rate? And if you were charged what happened over here, was VAT charged here?

Thanks,

Colin