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UK import taxes for coffee gear post Brexit


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The differing VAT rates across the EU and UK is not related to recent politics.

Even a decade ago when I was working in Luxembourg, if I ordered items from Amazon UK, and had them delivered to the Luxembourg office rather than my UK address the price often dropped at check-out due to Luxembourg having a lower applicable VAT rate.

I think this was mainly for items "delivered by and sold by" Amazon.

Thank goodness I was not using a German address, the TVA there was higher than the UK VAT. 😆

My understanding is that VAT should be charged at the place (country) the goods are supplied to.

Edited by Dave_E
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Well it's like lots of things the Civil service do...looks good on paper, doesn't always work in reality. Like the time they fined me for having no road tax on an electric car which doesn't need

Wow, this thread turned into a bag of crap fairly rapidly. I have just spent a while removing all the irrelevant comments on the 3 areas concerned. This thread should be about import taxes for co

Yes yes I know, it was the rules until 31 December 2020, now the UK is completely out in the EU and out of the VAT. cooperation that was valid until 31 December 2020. So now all UK orders from UK i

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This, https://www.icaew.com/brexit/uk-vat-after-the-transition-period, seems to suggest that if the goods are sold through an online marketplace, such as AliExpress, then they become responsible for VAT as described by Ken0062's link. However, for a vendor who sells directly, they would have to register with HMRC as described by the BBC article. So, I would imagine that a company with few sales to the UK may not choose to bother to set up a link with HMRC and the goods will no longer be available, but if they have a large enough established market already in the UK, it may be in their financial interest to do so. Also, if the sell through an online marketplace, then things should work fine. 

 

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5 minutes ago, earthflattener said:

Also, if the sell through an online marketplace, then things should work fine. 

Quite. But a market place will take its cut, so both parties (retailer and consumer) lose in the end. 😔 - middleman (person) wins. 

take an example: lamachinnadelcafe and bluestarcoffee. Presumably the latter will register with VAT in the UK as it’s in Ireland and the UK is a big market. As for the former, it might no longer be a feasible option for us in the UK. Time will tell I suppose.

 

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If you buy goods in China, they have 4 levels at which vat can be charged. Any vat collected by Aliexpress or the like remains in China. An export declaration is attached to the item declaring the value and if vat is to be collected on arrival in the UK, then it is and the customer pays it. VAT is a sales tax

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Bye Bye...........come back when you have less time

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Sales tax 😉 

try change the country in elektros.it shop, thats how you do it right 🥳

BEZZERA Coffee machine MATRIX TOP MN
Price for Norway (outside eu (VAT Excluded))  https://www.elektros.it/no/en/matrix_top_mn.html 
Price for Germany (inside EU (VAT Included)https://www.elektros.it/de/en/coffee_machines/matrix_top_mn.html

irrelevant stuff removed

Edited by DavecUK
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In order for you to pay no VAT on a purchase made abroad, you have to qualify it. For example, at Elektros I buy something bound for the UK. In the UK, I am VAT registered, so I give Elektros my VAT number and after checking, they deduct the VAT from the purchase and then VAT is charged by the UK when it comes into the country. It is still not clear how it works for individuals who are not VAT registered. In the case of the Norwegian buyer, he still pays VAT......to Norway

Edited by dfk41

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That’s my understanding. EU, with regards to VAT, is no different to any third country. So in this aspect, all is consistent. However, EU buyer was paying X for the grinder including VAT. Brexit happened, and now they see an approximate 20% increase on prices due to extra VAT charged by the country where the EU buyer lives. The EU buyer most likely think it’s unfair that, on the 30th of December 2020, he/she was paying X, and, on the 1st of Jan 2021, he is now paying X plus VAT, because the UK buyer still pays X for it including VAT. And we all know the reason, and that’s because Niche is now treating the EU as a third country like any other, and is not making the exception to remove UK VAT from the price for EU purchases (same approach to sales to USA, Canada, Etc). If they did that, then the final price to the EU customer would be therefore roughly the same as the UK as EU countries have a similar VAT rate. 

Niche stuff removed

Edited by DavecUK
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26 minutes ago, dfk41 said:

In order for you to pay no VAT on a purchase made abroad, you have to qualify it. For example, at Elektros I buy something bound for the UK. In the UK, I am VAT registered, so I give Elektros my VAT number and after checking, they deduct the VAT from the purchase and then VAT is charged by the UK when it comes into the country. It is still not clear how it works for individuals who are not VAT registered. In the case of the Norwegian buyer, he still pays VAT......to Norway

Yes yes I know, it was the rules until 31 December 2020, now the UK is completely out in the EU and out of the VAT. cooperation that was valid until 31 December 2020.

So now all UK orders from UK is with no VAT, and you will pay the  VAT to your own country when you import, if you have  VAT number you dont need to pay (I think also in UK) but if you are private you need to pay, thats why you dont pay Vat to Italy when you are overseas customer, exatly like Norway, Hong Kong, USA ordre is from the EU, will EU company not charge the EU VAT for overseas customers 
 

 

 

 

Edited by JackHK
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Yes yes I know, it was the rules until 31 December 2020, now the UK is completely out in the EU and out of the VAT. cooperation that was valid until 31 December 2020.

So now all UK orders from UK is with no VAT, and you will pay the  VAT to your own country when you import, if you have  VAT number you dont need to pay (I think also in UK) but if you are private you need to pay, thats why you dont pay Vat to Italy when you are overseas customer, exatly like Norway, Hong Kong, USA ordre is from the EU, will EU company not charge the EU VAT for overseas customers 
 
 
 
 
Yes but those from EU who bought it and paid it before 31st of December? the price includes the VAT? Because if it did then now for example in Spain they have to pay the Spanish VAT so in the end they pay 2 VAT? Let alone the customs taxes etc...
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Wow, this thread turned into a bag of crap fairly rapidly. I have just spent a while removing all the irrelevant comments on the 3 areas concerned.

This thread should be about import taxes for coffee gear..not about:

  • The BBC
  • Jim davidson
  • Niche Coffee

I let it run for a little but I turn my back and it's gone of the rails. I'm cleaning it up to what I think is relevant. Simply because I am actually interested in UK import taxes for coffee gear..So lets keep it useful!

P.S. This is one of those rare occasions when I may be tempted to break a personal rule. That rule is I don't edit posts (although I will remove quotes), I either hide them or leave them. In this instance rather than hide a post with useful information and crap in it, I may edit them to remove the crap instead of removing them. If you don't like the fact I've done that...just pm me and I will happily remove the edited post completely.

Edited by DavecUK
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Nothing here...

 

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As of 1st January 2021, we left EU and now trade as ‘rest of world’. Think of buying from Spain or Germany as you would have bought from Asia or USA. 
I looked at importing a roaster from Austria. The supplier declined my order because they didn’t know how to do RoW trading. I looked into this: the tariff on Gov.UK website for roasting equipment is 2.7% and then VAT on top at 20% would soon start adding up on a Eur2500 roaster. 

Hope that helps.  

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53 minutes ago, Turnado said:

I looked into this: the tariff on Gov.UK website for roasting equipment is 2.7% and then VAT on top at 20% would soon start adding up on a Eur2500 roaster. 

The cost doesn’t end there - you usually have to pay a charge to the courier for paying those charges on your behalf and they will not deliver the item to you until their charges are paid.

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1 hour ago, Turnado said:

As of 1st January 2021, we left EU and now trade as ‘rest of world’. Think of buying from Spain or Germany as you would have bought from Asia or USA. 
I looked at importing a roaster from Austria. The supplier declined my order because they didn’t know how to do RoW trading. I looked into this: the tariff on Gov.UK website for roasting equipment is 2.7% and then VAT on top at 20% would soon start adding up on a Eur2500 roaster. 

Hope that helps.  

I think that misses the essential point that the exporter from Europe does not have to pay VAT in their own country when exporting, so that there is no double VAT. We probably have to pay the import tariff of 2.7%. However, the UK government have insisted that a direct exporter registers with the HMRC in this country to pay VAT directly, which some may choose not to do because of the increased bureaucracy.  So, it should not cost much more but a) maybe not so much will be available or b) some companies might take the opportunity to increase the price of their product.

There was a second, but independent, discussion about a grinder, but the issue there ultimately seem to have nothing to do with VAT or taxes.

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28 minutes ago, earthflattener said:

We probably have to pay the import tariff of 2.7%.

Do we have to pay such tariffs even if comes from the EU? Didn't the deal remove those? 

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It was the grinder which I wanted to buy in the first place. (New Eureka XL) Interestingly I looked into buying said grinder from Doppio coffee in London and they offered to waive the carraige charge if I paid by bank transfer!

I didn't.

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2 minutes ago, MediumRoastSteam said:

Do we have to pay such tariffs even if comes from the EU? Didn't the deal remove those? 

I'm assuming it's just VAT? It's confusing though as the stuff I would imagine would come from the EU without VAT?

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Nothing here...

 

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I was researching this right after the trade deal with the EU had announced and most websites hadn't been updated yet.

I found this Irish website that explains it quite well. There won't be tariffs, but the idea is that European shops won't charge vat, which we'll then pay in the UK instead. We'll have to wait and see if the European (and British) shops actually do start following it.

 

JJ

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