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Brexit, customs, tax. Why?

  • #2
    Closed Accounts Posts: 86 ✭✭✭ 4fvw6lcprxeoyq


    So, I'm not well versed in the all this stuff, but can somebody explain in plain English?

    For example, Why do we suddenly have to pay VAT and customs charges and all that good stuff, and why didn't we have to pay it before?

    More specifically, I think I understand the "handling charges" it's kind of like saying to the Brits "we don't trust your stuff anymore, so we're going to check everything by hand"; but why didn't we have to pay VAT on UK goods before, I mean, it's basically just the public giving money to the Irish government, right?

    Or is there some other concrete reason why we didn't pay these taxes from item from the UK before, like the UK paid money to the EU to cover taxes or something like that?

    Basically it seems to me that everything is the same, except we're giving the government extra money because the UK left the EU..

    Or does this tax money, or part of it, go to the EU?


Comments

  • #2


    No Customs Duty on any trade within a CU.

    The UK wanted to leave the CU.

    Therefore, customs duties will apply.

    A free-trade deal was agreed, meaning no customs duties / tariffs on qualifying goods.

    However, goods not made or processed in the UK may not qualify.

    So, goods from China/USA/Aus/NZ, etc., imported into UK, for export to the EU, may then face Customs Duties.

    Customs Duties revenues accrue to the EU, the collecting State is allowed keep 20% I think, to cover collection costs.


  • #2


    You already had to pay VAT to the Irish government if the retailer sold more than 35k in to Ireland - which would be basically every major web retailer and even some eBay sellers. Its just now its on everything.


  • #2


    Geuze wrote: »
    No Customs Duty on any trade within a CU.

    The UK wanted to leave the CU.

    Therefore, customs duties will apply.

    A free-trade deal was agreed, meaning no customs duties / tariffs on qualifying goods.

    However, goods not made or processed in the UK may not qualify.

    So, goods from China/USA/Aus/NZ, etc., imported into UK, for export to the EU, may then face Customs Duties.

    Customs Duties revenues accrue to the EU, the collecting State is allowed keep 20% I think, to cover collection costs.

    CU? I'll assume you mean EU, unless corrected.

    But yes, that makes sense (I think), thanks.
    Seems messy though, like they have to figure out if something was physically made in the UK?
    Or if the company are UK based?
    What about used items, say, things that don't have boxes, or could have been made anywhere, like pottery, antiques, or just general generic items?
    Or do they just give unknown/small/inexpensive items, the benefit of the doubt and forget about them?
    L1011 wrote: »
    You already had to pay VAT to the Irish government if the retailer sold more than 35k in to Ireland - which would be basically every major web retailer and even some eBay sellers. Its just now its on everything.

    Ah, really? That's mad!
    The more I learn about this stuff the more I realise I know bugger all about it.


  • #2


    CU = Customs Union


  • #2


    https://ec.europa.eu/info/relations-united-kingdom/eu-uk-trade-and-cooperation-agreement_en

    Free Trade Agreement
    A new economic and social partnership with the United Kingdom

    The agreement covers not just trade in goods and services, but also a broad range of other areas in the EU's interest, such as investment, competition, State aid, tax transparency, air and road transport, energy and sustainability, fisheries, data protection, and social security coordination.

    It provides for zero tariffs and zero quotas on all goods that comply with the appropriate rules of origin.


  • #2


    https://ec.europa.eu/taxation_customs/sites/taxation/files/2021-brexit-top-50-faq.pdf

    BREXIT: END OF TRANSITION PERIOD
    FAQs ON TAX AND CUSTOMS

    This document gives an overview of the impact of the UK’s withdrawal from the single market
    and EU customs union on the areas of taxation and customs as of 1 January 2021.
    These FAQs can serve as a first point of reference, providing general answers to the most common
    questions. For more detailed and precise information, however, you should contact your national
    authorities and/or refer to the detailed guidelines, which are available on a wide range of issues
    on the Commission’s website.


  • #2


    Geuze wrote: »
    https://ec.europa.eu/taxation_customs/sites/taxation/files/2021-brexit-top-50-faq.pdf

    BREXIT: END OF TRANSITION PERIOD
    FAQs ON TAX AND CUSTOMS

    This document gives an overview of the impact of the UK’s withdrawal from the single market
    and EU customs union on the areas of taxation and customs as of 1 January 2021.
    These FAQs can serve as a first point of reference, providing general answers to the most common
    questions. For more detailed and precise information, however, you should contact your national
    authorities and/or refer to the detailed guidelines, which are available on a wide range of issues
    on the Commission’s website.

    I'll give those a read, thanks!


  • #2


    L1011 wrote: »
    You already had to pay VAT to the Irish government if the retailer sold more than 35k in to Ireland - which would be basically every major web retailer and even some eBay sellers. Its just now its on everything.

    I find that with the U.K. outside the EU that I pay less VAT due to elimination of VAT on low value consignments (less than €22 including delivery etc). This couldn’t be done while the U.K. was a member state. With Amazon, I find that even when I make multiple purchases (separate invoices/orders) without VAT they often group them together for packaging and delivery, again without VAT.


  • #2


    Marcusm wrote: »
    I find that with the U.K. outside the EU that I pay less VAT due to elimination of VAT on low value consignments (less than €22 including delivery etc). This couldn’t be done while the U.K. was a member state. With Amazon, I find that even when I make multiple purchases (separate invoices/orders) without VAT they often group them together for packaging and delivery, again without VAT.

    This loophole lasts until end of June, I think.


  • #2


    Geuze wrote: »
    This loophole lasts until end of June, I think.

    Correct, a new VAT regime will be implemented and the € 22.00 threshold will be eliminated.


  • #2


    So what about importing a vintage 1970s radio to the value of €30, would that incur customs Vat of some kind, or do taxes only apply to new stuff?


    Damaged goods too, needing repair, do they incur Customs taxes? My brother wants to send over some stuff from Wales but before he does we need to check out any hidden "Brexit" expenses.


  • #2


    not sure if it still applies since the rules came into force but gifts up to a value of €45 would be vat/duty exempt



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