Buy parts in Great Britain after Brexit

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pierodn

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After Brexit, for all us fans that live in European Union buy parts from GB will be more expensive.
English seller will not charge us VAT 20% anymore but we will pay it at home (mine is 22%) with more duty, custom and courrier clearance, for a total amount of 20% added.
The only thing that we could do is have the items sent by Royal Mail, and as long as the value of the order is lower than £135.00 (threshold of duty free) and under 2kgs in weight.
But even if you buy stuff (duty free) for less of 135 GP but the seller ship with courier, he will charge custom clearance of almost the 15%!.
Other solution for Andover customers is to buy from Andover DE.
Piero
 
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Piero,
It may all change again in July when the EU MOSS system will start. There will be no threshold for Vat exemption. Anything over E135. 00 will be classed as an import.
This change is not a Brexit issue but a EU issue, more details on the Europa website. The rules will apply to anyone outside the EU that wants to sell into the EU. The retailer will need to either have a company registered and located in the EU or register with the EU to sell into EU states.
From July, anyone in the EU will need to either pay VAT at point of sale with the company registered to sell into the EU, be a registered importer or privately receiving a 'gift'
Considering EU customs can't deal with a parcel from the UK where they only need to collect VAT, does not bode well for July. Best of luck.
 
The UK Government is currently advising UK businesses to set up an EU warehouse to process EU orders. Not sure if this advice was ever broadcast before January this year.
Andover Norton are OK as Piero says, but not many are so fortunate.
 
There will be people as we speak opening up warehouses to cover this, by adding on exploitative fees the Couriers have cut their own throat by making the alternatives more attractive.

Basically this situation is called arbitrage.

What Is Arbitrage?​

Arbitrage is the purchase and sale of an asset in order to profit from a difference in the asset's price between markets. It is a trade that profits by exploiting the price differences of identical or similar financial instruments in different markets or in different forms. Arbitrage exists as a result of market inefficiencies and would therefore not exist if all markets were perfectly efficient.

So in the short term the rules have changed, for a short time the couriers will get their pound of flesh but longer term the market will work out a more efficient way to work the system.

In the meantime the UK Govt has plugged a loophole exploited by Chinese companies with fake VAT numbers selling on Ebay and Amazon with no VAT getting to the UK Govt. This is expected to gain UK Govt £1Bn extra VAT receipts per annum.
 
Didn´t know about the Andover.DE, need to check that out. So 5 min later I now know that it´s called "NortonMotors.de" Makes it a bit easier to find.
 
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The latest government advice for a company to set up in the EU is not result of Brexit, it is due to the changes that will come into force in July.
The changes will also affect the UK, the likes of Alibaba will need to charge UK VAT at time of purchase on parcels sent to the UK.
 
Aliexpress is charging VAT now. Assume sister company Alibaba is doing it too but only up to £135, then it will need a shipping agent ?
 
So, reading some of the above I understand that all the new troubles experienced are all the fault of the EU, not of the half of the voters in the UK. Right?;)
My guess is that many companies will see drastic fall of their income from now on if they can't find a solution to this problem.
 
ericg,
Yes, realistically it is not an EU or Brexit thing, NZ has operated this system for sometime now. The world is a global market place and these measures are designed to collect VAT that was not being collected.
RGM will not need to set up an EU branch, just register with the EU to sell in the EU states, and then it will back as things were.
Any company that uses paper will be history, the new way relies heavily on retaining accurate records of sales, VAT, product traceability etc. Those that cannot or do not want to will not be able to sell abroad.
 
B+Bogus said:
The UK Government is currently advising UK businesses to set up an EU warehouse to process EU orders. Not sure if this advice was ever broadcast before January this year.
Andover Norton are OK as Piero says, but not many are so fortunate.
Click to expand...
Sorey, but Andover Germany has a web list but it doesnt work!
Seems to be a gosth page!
 
Madnorton said:
Piero,
It may all change again in July when the EU MOSS system will start. There will be no threshold for Vat exemption. Anything over E135. 00 will be classed as an import.
This change is not a Brexit issue but a EU issue, more details on the Europa website. The rules will apply to anyone outside the EU that wants to sell into the EU. The retailer will need to either have a company registered and located in the EU or register with the EU to sell into EU states.
From July, anyone in the EU will need to either pay VAT at point of sale with the company registered to sell into the EU, be a registered importer or privately receiving a 'gift'
Considering EU customs can't deal with a parcel from the UK where they only need to collect VAT, does not bode well for July. Best of luck.
Click to expand...
Hi.
Never said that there is threshold for VAT but only for custom.
 
Madnorton said:
ericg,
Yes, realistically it is not an EU or Brexit thing, NZ has operated this system for sometime now. The world is a global market place and these measures are designed to collect VAT that was not being collected.
RGM will not need to set up an EU branch, just register with the EU to sell in the EU states, and then it will back as things were.
Any company that uses paper will be history, the new way relies heavily on retaining accurate records of sales, VAT, product traceability etc. Those that cannot or do not want to will not be able to sell abroad.
Click to expand...
But for us will not change nothing even if british company will be registered in EU.
We will pay national VAT, and this is clear and right, but will be added duty, custom and clearance custom of courrier!
 
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pierodn said:
But for us will not change nothing even if british company will be registered in EU.
We will pay national VAT, and this is clear and right, but will be added duty, custom and clearance custom of courrier!
Click to expand...
Ah, but the advantage of buying from, for example, Joe at Norton Motors in Germany is that you do not need to pay any of these fees - Joe has paid them when he has imported the stuff. Of course he has to pass his costs on to the customer, but economies of scale mean that it's still a better deal. Especially for those small orders of bits that you forgot or did not know that you needed....

I was just wondering if RGM were going to do something similar. It must make a considerable difference to their turnover, if many of their EU customers stop buying.
 
SteveBorland said:
Ah, but the advantage of buying from, for example, Joe at Norton Motors in Germany is that you do not need to pay any of these fees - Joe has paid them when he has imported the stuff. Of course he has to pass his costs on to the customer, but economies of scale mean that it's still a better deal. Especially for those small orders of bits that you forgot or did not know that you needed....

I was just wondering if RGM were going to do something similar. It must make a considerable difference to their turnover, if many of their EU customers stop buying.
Click to expand...
But the Andover DE doesnt work, is a gosth page!
 
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