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Paying VAT on sales after Brexit

  • 24-09-2020 11:08pm
    #1
    Registered Users Posts: 1,431 ✭✭✭


    Hi all

    Just wondering if there is any update on paying VAT on sales to the UK. Currently I am paying it on all online EU sales but I'm assuming I won't need to once UK leave EU? How will this work etc?

    Sorry if it's been answered before but the search option is just full of VAT queries on car purchases and sales etc.

    Any help/advice is appreciated. Thanks


Comments

  • Registered Users Posts: 12,141 ✭✭✭✭Calahonda52


    what do you you wont need to?
    Sunak is down about 50 bn at the mo due to c19, 2 trillion in total debt so he will be looking for his pound of flesh.
    It could be that you pay VAT in UK and not be abel to claim it back here, except as a business expense

    “I can’t pay my staff or mortgage with instagram likes”.



  • Registered Users Posts: 10,150 ✭✭✭✭Marcusm


    what do you you wont need to?
    Sunak is down about 50 bn at the mo due to c19, 2 trillion in total debt so he will be looking for his pound of flesh.
    It could be that you pay VAT in UK and not be abel to claim it back here, except as a business expense

    Seriously? Do you understand how the U.K. VAT rules apply to exports? The law is already in place. The U.K. will not charge VAT but there will be an obligation inIreland on the import hence why, for Amazon etc, a trade agreement will be important so that they can continue to collect destination country VAT on consumer sales and not impact that part of amazon.co.uk’s business.


  • Registered Users Posts: 1,431 ✭✭✭forzacalcio


    Marcusm wrote: »
    Seriously? Do you understand how the U.K. VAT rules apply to exports? The law is already in place. The U.K. will not charge VAT but there will be an obligation inIreland on the import hence why, for Amazon etc, a trade agreement will be important so that they can continue to collect destination country VAT on consumer sales and not impact that part of amazon.co.uk’s business.

    This is what I was asking. Tbh I didn't understand that first reply I got anyway but didn't want to sound stupid in my reply so I just left it so thanks for your reply.

    What I'm trying to ask. Will online sales be treated the same way for UK sales as they would for US sales Vat wise.


  • Registered Users Posts: 10,150 ✭✭✭✭Marcusm


    This is what I was asking. Tbh I didn't understand that first reply I got anyway but didn't want to sound stupid in my reply so I just left it so thanks for your reply.

    What I'm trying to ask. Will online sales be treated the same way for UK sales as they would for US sales Vat wise.

    Are you a consumer or a supplier?


  • Registered Users Posts: 1,431 ✭✭✭forzacalcio


    Marcusm wrote: »
    Are you a consumer or a supplier?

    I sell my own handmade items on online market places. I hope that answers the question?


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  • Registered Users Posts: 3,817 ✭✭✭Darc19


    Currently no one knows, but it's likely that you will sell to Britain on a vat exclusive basis, complete all the customs paperwork and your customer will pay vat and duty upon delivery.

    Almost the same as if you purchased something from America or China.


    Note I use "Britain" and not UK. It is likely that different rules will apply to northern Ireland.


    Unless you have strong business in the uk, it won't be worth the hassle.


  • Registered Users Posts: 1,431 ✭✭✭forzacalcio


    Darc19 wrote: »
    Currently no one knows, but it's likely that you will sell to Britain on a vat exclusive basis, complete all the customs paperwork and your customer will pay vat and duty upon delivery.

    Almost the same as if you purchased something from America or China.


    Note I use "Britain" and not UK. It is likely that different rules will apply to northern Ireland.


    Unless you have strong business in the uk, it won't be worth the hassle.

    Thanks Darc. Majority of my business is the states and UK. Customs shouldn't apply as the items are under €25, a decrease in price might be required to match vat payments by customer if I'm reading it right. Thanks for all the help all. It's a little bit clearer at this stage. Appreciate all the feedback


  • Registered Users Posts: 10,150 ✭✭✭✭Marcusm


    I sell my own handmade items on online market places. I hope that answers the question?

    That’s the more difficult end and will then depend on whether or not there is an agreementZ. If there isn’t then the delivery service will have to collect and duty or VAT due which will be prohibitive at your level. The old small goods exemption was ridden to death byBtesco, WH Smith etc delivering cds, DVDs etc from Jersey so it will be interesting to see what happens. Do you let the marketplace handle your stock (likely become part of their service) or do you dispatch personally?

    This explains how you will be expected to operate to charge and remit VAT so nothing has to be done on delivery.
    https://www.gov.uk/government/publications/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021


  • Registered Users Posts: 1,431 ✭✭✭forzacalcio


    Marcusm wrote: »
    That’s the more difficult end and will then depend on whether or not there is an agreementZ. If there isn’t then the delivery service will have to collect and duty or VAT due which will be prohibitive at your level. The old small goods exemption was ridden to death byBtesco, WH Smith etc delivering cds, DVDs etc from Jersey so it will be interesting to see what happens. Do you let the marketplace handle your stock (likely become part of their service) or do you dispatch personally?

    This explains how you will be expected to operate to charge and remit VAT so nothing has to be done on delivery.
    https://www.gov.uk/government/publications/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021

    No I handle everything as its make to order. Im very pedantic about ensuring quality control. I wouldnt trust marketplaces to package, ship and deliver my items the way I want it tbh. I ship alot outside the EU and Ive never had to pay VAT on the items (At least my accountant is stating this) For example if I ship an item to The States its taken by the marketplace at point of sale Thanks again for the help on this one.


  • Registered Users Posts: 3,817 ✭✭✭Darc19


    If you ship to the states, then the UK will probably be identical to what you do for the USA.

    Same paperwork, same pricing and probably only difference will be the delivery costs

    If it's low value items, it may get delivered without vat, thus you might be at an advantage.


    Should be plenty of information on revenue site.


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  • Registered Users Posts: 10,150 ✭✭✭✭Marcusm


    Darc19 wrote: »
    If you ship to the states, then the UK will probably be identical to what you do for the USA.

    Same paperwork, same pricing and probably only difference will be the delivery costs

    If it's low value items, it may get delivered without vat, thus you might be at an advantage.


    Should be plenty of information on revenue site.

    The one thing I can say is that the U.K. certainly won’t be the same as the US, which doesn’t have a single sales tax regime.

    If you follow the link I’ve copied above, you will see that HMRC requires the overseas vendor to register and account for U.K. VAT on sales for delivery to the U.K. Aadditionally it has abolished low value consignment relief. Marketplaces which have any exposure to the U.K. will likely require that vendors sign up for this (or sign up for the marketplace to handle it) or they will have to refuse to match sellers and buyers for U.K. deliveries.


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