

UK news Changes to VAT treatment of overseas goods sold to customers from 1 January 2021
#1 OFFLINE
Posted 22 October 2020 - 12:07 PM
This isn't going to be good for the collectors in the UK by the sounds of it.
Star Trek star William Shatner has threatened to stop selling merchandise from his online store to the UK because of costly red tape.
The Canadian actor, best known for playing Captain James T Kirk in the blockbusting sci-fi franchise, issued the warning on Twitter and apologised to fans.
He claimed the British government was seeking to make overseas sellers collect VAT on orders being sent to the UK from the New Year.
https://news.sky.com...d-tape-12105849
Link to My model collection here on diecastxchange com
#2 OFFLINE
Posted 22 October 2020 - 12:50 PM
Companies outside the UK are in another jurisdiction, and unless the government of the second country agrees to such rules, there are no legal powers of enforcement.
Some years ago I got a parking ticket in Newry town, across the border in Northern Ireland.
When I looked closely, it had no registration number on it, meaning the issuer knew well it could not be enforced.
It added a tiny amount to the local litter bin......
#3 OFFLINE
Posted 22 October 2020 - 12:51 PM



#4 OFFLINE
Posted 23 October 2020 - 05:28 AM
#5 OFFLINE
Posted 23 October 2020 - 06:11 AM
For 3rd countries (ie Canada) it was already common practice to register in a destination country if they would want to perform services or deliver goods there.
Sure I'm not an expert but it seems to me that he should do some more investigation on the subject.
McLaren F1 - Lamborghini Diablo SE30 - Ferrari F50 - Bugatti EB110 - Ferrari 550 Maranello
#6 OFFLINE
Posted 23 October 2020 - 07:45 PM
#7 OFFLINE
Posted 24 October 2020 - 02:34 AM
#8 OFFLINE
Posted 25 October 2020 - 05:24 AM
A few other companies collect the GST tax on behalf of the government, and some will know that one company in Italy that does this also is MR Collection models. Buy from their site and the 10% GST is added in checkout.
Thankfully BBR does not do this yet, so no extra tax when I buy their models. Hopefully they don't as this will keep pushing prices up.
#9 OFFLINE
Posted 25 October 2020 - 12:24 PM
God help us...
#10 OFFLINE
Posted 25 October 2020 - 09:39 PM
To be frank majority of the overseas purchases by most are just blurays, console games etc which doesn't really hurt HN's core business interest since they trade primarily in bulky white goods and premium furniture anyway. It is not like Aussies are importing wide screen TVs and fridges from overseas just because they are slightly cheaper elsewhere.
#11 OFFLINE
Posted 26 October 2020 - 07:38 AM
jazzy426, on 25 October 2020 - 09:39 PM, said:
To be frank majority of the overseas purchases by most are just blurays, console games etc which doesn't really hurt HN's core business interest since they trade primarily in bulky white goods and premium furniture anyway. It is not like Aussies are importing wide screen TVs and fridges from overseas just because they are slightly cheaper elsewhere.
This was the idea of the new Irish state after independence in 1922.
Promote 'self sufficiency' through punishing import taxes on goods not manufactured in Ireland.
Of course the same governments who supported the idea didn't actually live by these rules, introducing a variety of loop holes for those with the right connections.
It took until the 1990's for Ireland's economy to wake from the slumber, and cast off the restrictions which stifled our lives.
This Tory scheme stinks of the same idealogical imposition.
#12 OFFLINE
Posted 26 October 2020 - 08:05 AM
speedy, on 22 October 2020 - 12:07 PM, said:
This isn't going to be good for the collectors in the UK by the sounds of it.
Star Trek star William Shatner has threatened to stop selling merchandise from his online store to the UK because of costly red tape.
The Canadian actor, best known for playing Captain James T Kirk in the blockbusting sci-fi franchise, issued the warning on Twitter and apologised to fans.
He claimed the British government was seeking to make overseas sellers collect VAT on orders being sent to the UK from the New Year.
https://news.sky.com...d-tape-12105849
Sounds like it will be much better for UK consumers. No more buying stuff from overseas and not knowing how much you'll pay in VAT/duty when it arrives, and hopefully no more post office/Fedex fees. Seems like a win to me. The only downside is if sellers don't want to play ball and refuse to ship to the UK, unless I've missed something.
Collection thread (to be updated)
#13 OFFLINE
Posted 26 October 2020 - 08:08 AM
#14 OFFLINE
#15 OFFLINE
Posted 01 January 2021 - 06:37 AM
I thought after a deal was agreed there would be no import duties for buying from Europe, has something changed?
#16 OFFLINE
Posted 01 January 2021 - 06:49 AM

Personally I will follow the „wait & see“ approach - i.e. neither buying nor selling from / to the UK until the fog has cleared...
#17 OFFLINE
Posted 01 January 2021 - 06:55 AM
Hybrid Theory, on 01 January 2021 - 06:37 AM, said:
I thought after a deal was agreed there would be no import duties for buying from Europe, has something changed?
Like most people who voted for Brexit (no idea if YOU did or not), you misunderstood!
You won't pay EU VAT anymore (or you shouldn't), but you'll still pay UK VAT, which is 1% more than German.
There are no DUTIES on the import, the 20% is ALL UK VAT as if you were buying from a retailer in the UK.
Retailers in EU countries, though, should remove their domestic Sales Tax as we're no longer in a reciprocal agreement.
Buying from the EU now will be like buying from the US, China or Japan.
spikyone, on 26 October 2020 - 08:05 AM, said:
There was no reason for not knowing how much VAT you would pay it's always 20% (if you didn't get charged, you got lucky!).
It will be interesting to see if the PO and Fedex now drop their charges. I suspect they'll actually go UP as they'll be checking to see if the VAT WAS paid in advance...
I suspect this will be final nail in my diecast collecting as most have come from Germany and, at the moment at least, the retailers seem to be struggling - I guess it's only day 1, so let's see how it pans out.
M
Edited by snowman, 01 January 2021 - 07:03 AM.
#18 OFFLINE
Posted 01 January 2021 - 07:27 AM
Buyers already outside the EU will have stories to tell on this issue.
E-bay sellers - if they are private individuals - will probably not have this option.
If buying from such a seller in the EU you might find a demand for the additional 20%.
You have to be registered for VAT and have a VAT number (so that when the taxman calls you can explain).
This should always have been the case with second hand goods (used) because VAT had already been paid (an EU rule as far as I know).
Edited by slartibartfast229, 01 January 2021 - 07:28 AM.
#19 OFFLINE
Posted 01 January 2021 - 07:38 AM
Im guessing you will have another 20% VAT on top of that so really looking bleak for UK collectors.
#20 OFFLINE
Posted 01 January 2021 - 07:46 AM
For buyers in UK from EU, and vice-versa, this will not, or should not in theory, change things drastically when buying from business sellers. However, it does change the game totally when it comes to private sales. Reason: private sellers will not be able to get any VAT removal on the item they are selling.
So let's say as a UK buyer you buy a model from CK-modelcars with European retail price of €100. CK will remove the German VAT when they sell to you since the item goes outside the EU. So you actually pay €84. When it enters the UK and before you can claim it you will have to pay UK VAT and any import processing customs fees. If UK VAT is 20% that means about €85 plus fees. Therefore, not a huge difference. However, if you want to buy a model from me (a private seller based in Denmark, part of the EU), I can not claim the VAT deduction with the Danish government. The model I am selling I have already paid full price whenever I bought it. So if I am selling a model for let's say €100, any buyer in the EU will have no additional fees since - again - there are no customs charges within EU. A UK buyer on the other hand will have to pay €100 + (let's say 20% VAT) €20 + any other processing fees.
And the same goes for me trying to buy items from private sellers in the UK. Actually Danish VAT is the highest, at 25% more than British VAT, so even from business sellers i will think twice before buying. And buying from private sellers in the UK? Forget about it!
The upshot of all this: I doubt I will be selling models to UK based buyers anymore. That's ok for me since the European market is large and yes while I lose a few potential customers I still have many countries in EU where people can buy models from me. UK private sellers, as far as I understand, are out of luck. Their market will be drastically reduced.
While Brexit is a matter of internal UK politics (in my opinion, matters of enormously important and complex state policy which few people still understand properly should be decided by experts, not be a referendum, and certainly not where one side was lying through its teeth and manipulating the masses the whole time and to this very day (the £350 million a week bus, Boris?)), there is a very real impact here on our hobby. and many other areas of commerce and where people would be buying and selling stuff privately across borders.
Not a good outcome at all.
Edited by Uzair, 01 January 2021 - 08:21 AM.



#21 OFFLINE
Posted 01 January 2021 - 08:33 AM
The Kyosho Lancia 037 is shown as 179.95 Euros
Add it to your basket and go to checkout with a UK address
You will see the price is now 151.22 Euros
This is the net price (ex 19% German VAT)
If you buy you will pay 171.17 Euros (with 19.95 Euro postage - No idea why that's skyrocketed!) BUT you are liable for 20% on top of that, so you SHOULD end up paying 205 Euros plus whatever you get charged by the shipper for administering the VAT charges on importation to the UK (probably around £15 - Although they may have hiked that TOO or it may account for the increment in the postage cost, being factored in - well, we can dream!

EXCEPT, there's an odd rule I don't understand about a £135/155 Euro minimum of goods - So you can't buy the Kyosho Lancia 037 alone as it's less than that!
So, just like it used to be when importing from anywhere outside the EU, except we're now even more isolated - Better? Is it F...
M
Edited by snowman, 01 January 2021 - 08:37 AM.
#22 OFFLINE
Posted 01 January 2021 - 08:53 AM
But come on, it was clear as day this was coming. I think everyone will lose out eventually, I can see CK losing a lot of uk customers, whether that is a big base for them I don't know, but I'm seriously gonna have to reconsider my purchases with them in future. I noticed the hike in postage but didn't clock the minimum order price!
#23 OFFLINE
Posted 01 January 2021 - 08:59 AM
snowman, on 01 January 2021 - 08:33 AM, said:
M
jusali, on 01 January 2021 - 08:53 AM, said:
But come on, it was clear as day this was coming. I think everyone will lose out eventually
I knew back in 2016 right after the shock election result (which other 2016 election result shocked us, and who was an architect behind the scenes in both? R. Murdoch) that this would be a slow but definite disaster in the unfolding. I've got a lot of very choice appropriate words to say about the matter and those behind all the deception and political thuggery but since this a hobby forum and not a political one will abstain. But make no mistake, Brexit affects everyone in Europe. Effects on EU citizens? A little bit. Effects on UK citizens? A whole lot, and very little for the better.
Political campaigns based on absolutely cynical sloganeering mixed with a populace too caught up in a simplified worldview and unable to exercise critical thinking gets us to these kinds of things. And here I thought politics in the south-Asian sub-continent (where I grew up) was full of charlatans and gullible citizenry...



#24 OFFLINE
Posted 01 January 2021 - 09:28 AM
Religion exists long after it's expiry date because of them.
Fortune tellers, palm readers, purveyors of lucky charms - all (and many others) continue to prey on the foolish.
"There's one born every minute".
A long time ago I learned a valuable lesson - listen once, cross check twice.
#25 OFFLINE
Posted 01 January 2021 - 09:33 AM



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