Scrapping of threshold for goods to the UK from January.

[jellybirddesigns]

Just got an email from Aus Post this morning - don't think I'll be shipping to the UK any time soon.

--

From 1 January 2021, the value-added tax (VAT) applicable to commercial items valued at £15 – £135 entering the UK will now be expanded to £0 – £135 (inclusive), meaning the £15 lower limit is abolished. The VAT on these items will also now have to be pre-paid.

If you sell goods to customers in the UK, from January 2021 you'll need to pre-pay VAT to avoid additional costs. To do this, you'll need to ensure you have:

• a GB Economic Operator Registration and Identification (EORI) number before shipping your goods
• the HS Tariff Code required to make a customs declaration and calculate duties on an import
• the customs value of goods – needed to make a customs declaration and calculate duties on import.

We recommend you prepare for the application of the VAT scheme to your business by considering the changes and where appropriate, applying for an EORI number n advance. It can take up to a week to get one, so register early.

[south.coffee]

eBay will probably collect the VAT from the buyer up front just like they collect GST from Australian buyers on overseas goods I'd imagine. You just have to comply with the UK Customs procedures.

Selling overseas to some countries is becoming more complicated than it's worth... especially now post COVID with Governments thread bare of any money. They will come up with as many extra tax bases they can find.

[digital*ghost]

The EU are following suit on July 1st, 2021.

eBay will be obligated to collect and remit the VAT on behalf of sellers, according to the current info from this UK Gov site: "Online marketplaces (OMPs), where they are involved in facilitating the sale, will be responsible for collecting and accounting for the VAT." - source linked below. I don't know if the same will apply when the EU implements it, but I expect so.

This will actually make products cheaper for UK buyers if they are priced between around AUD $27 - $240  (after that threshold, collection of taxes reverts back to UK customs). VAT was meant to be applied to all merchadise valued at £15 or more, and a £9 processing fee was added. Under the new system, they'll still pay the VAT, but not any other fees unless valued over £135, in which case the old system applies (like how ours is done for under $1k and over $1k). I expect the instances of UK buyers refusing to pay VAT and trying to claim INR will significantly reduce once this goes into effect, as well. 

https://www.gov.uk/government/publications/changes-to-vat-treatment-of-overseas-goods-sold-to-custom...