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UK/Brexit/mbp

Started by madbean, February 03, 2021, 11:20:53 AM

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madbean

I am probably going to have to suspend UK shipments for a bit. Apparently Brexit has given us a gift of US Retailers being required to collect VAT on goods shipped to the UK to be remitted quarterly. And it must be done no matter how small the value of goods. So, even if Mr. Nellwyn Huxleye of Bletchley and Fenny Stratford buys a $1 board from me, I have to collect VAT on that. I don't know if I can even do this (at least not without inadvertently collecting VAT for all international orders which isn't going to work.) And on top of that, if I don't do it and ship anyway then the packages may not get delivered at all.

This is going to be quite a hassle to figure out.

matmosphere

Maybe PayPal will get something worked out to make it more manageable. I'm sure a lot of retailers are scrambling to figure this out.

mjg

As an aside, what do you need to do for Australian orders?  They introduced something similar here a few years back, but it seems they only enforced against the large selling platforms like eBay and Amazon.  Lots of posturing from both sides, but in the end I don't know what happened for smaller sellers. 

I guess if your Australian shipments are still getting through, keep doing what you're doing.  🙂

jimilee

What you need is a distributor in the UK to handle the orders. You ship them to say, Thomas H or Alan P. When you get an order, they ship them for you.


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Pedal building is like the opposite of sex.  All the fun stuff happens before you get in the box.

madbean

Quote from: mjg on February 03, 2021, 01:20:01 PM
As an aside, what do you need to do for Australian orders?  They introduced something similar here a few years back, but it seems they only enforced against the large selling platforms like eBay and Amazon.  Lots of posturing from both sides, but in the end I don't know what happened for smaller sellers. 

I guess if your Australian shipments are still getting through, keep doing what you're doing.  🙂

Australia is fine and always has been! Unfortunately, I have had to raise the shipping price for Aussies just yesterday. For the last two years I've been charging $13 when in fact the actual cost was a little over $16. Now, 1st Class USPS to Australia is over $17. So, I have raised the shipping fee to $15. I'm willing to take small losses on international shipping in the interest of retaining customers but I can only go so far with it :(

jkokura

Quote from: jimilee on February 03, 2021, 03:23:09 PM
What you need is a distributor in the UK to handle the orders. You ship them to say, Thomas H or Alan P. When you get an order, they ship them for you.


Sent from my iPhone using Tapatalk

I tried this for a while. In the end, it wasn't worth the hassle either.

Jacob
JMK Pedals - Custom Pedal Creations
JMK PCBs *New Website*
pedal company - youtube - facebook - Used Pedals

jimilee

Quote from: jkokura on February 03, 2021, 04:13:39 PM
Quote from: jimilee on February 03, 2021, 03:23:09 PM
What you need is a distributor in the UK to handle the orders. You ship them to say, Thomas H or Alan P. When you get an order, they ship them for you.


Sent from my iPhone using Tapatalk

I tried this for a while. In the end, it wasn't worth the hassle either.

Jacob
I can see that.


Sent from my iPhone using Tapatalk
Pedal building is like the opposite of sex.  All the fun stuff happens before you get in the box.

Willybomb

QuoteAs an aside, what do you need to do for Australian orders?  They introduced something similar here a few years back, but it seems they only enforced against the large selling platforms like eBay and Amazon.  Lots of posturing from both sides, but in the end I don't know what happened for smaller sellers.

I guess if your Australian shipments are still getting through, keep doing what you're doing.  🙂

Paypal has been adding the GST at the checkout in my experience (with ebay at least) - but it seems to be fairly haphazard as to when it decides to do so.

mjg

Quote from: madbean on February 03, 2021, 04:12:43 PM
Quote from: mjg on February 03, 2021, 01:20:01 PM

I guess if your Australian shipments are still getting through, keep doing what you're doing.  🙂

Australia is fine and always has been! Unfortunately, I have had to raise the shipping price for Aussies just yesterday. For the last two years I've been charging $13 when in fact the actual cost was a little over $16. Now, 1st Class USPS to Australia is over $17. So, I have raised the shipping fee to $15. I'm willing to take small losses on international shipping in the interest of retaining customers but I can only go so far with it :(

Yeah, that's painful, and I appreciate that you are subsiding it a bit to make it more affordable.

Going the other way, when I send a PCB from Australia to the US, it's $3 untracked, but unfortunately some don't arrive.  Or they arrive 3 months later.  I did ask about tracked and insured, and it was something like $30 postage for a PCB, which isn't worth it. 

danfrank

Quote from: madbean on February 03, 2021, 11:20:53 AM
I am probably going to have to suspend UK shipments for a bit. Apparently Brexit has given us a gift of US Retailers being required to collect VAT on goods shipped to the UK

Ha ha, what a bunch of lazy wankers those brit authorities are! Wanting the Yanks to do their fookin job.

BigK

#10
Hi, is there any update on this?

I've ordered some PCB's from PedalPCB and one of the Final Run Standouts from VFe after Brexit and didn't pay any VAT at the point of sale and just paid any Import duty and VAT before delivery (like I would if I bought something from Tayda or elsewhere).

Both were sent via USPS and had the standard USPS customs declaration label on it and there wasn't any problem.

Items under the value of £39 (around $55) are exempt from import duty and VAT anyway so the last shipment from pedalPCB I didn't have to pay anything.

I really want to build a couple more VFe pedals amongst a few other projects so would appreciate you looking into this again.

I've just read through the information on the .gov website and I don't believe you meet the criteria to be classed as an online market place as you use paypal to handle the transactions. "What an online marketplace is
HMRC's definition of an online marketplace is a business using a website or mobile phone app (such as a marketplace, platform or portal) to handle the sale of goods to customers which meets all of the following conditions:

in any way sets the terms and conditions on how goods are supplied to the customer
is involved in any way in authorising or facilitating customers' payments
is involved in the ordering or delivery of the goods
A business will not be classed as an online marketplace if it only provides one of the following services:

processing of payments for the supply of the goods to the customer
listing or advertisement of goods
redirection or transferring of customers to other websites or mobile phone apps where goods are offered for sale, without any further involvement in any sale that might take place on that website or app"

https://www.gov.uk/guidance/vat-and-overseas-goods-sold-to-customers-in-the-uk-using-online-marketplaces

Food for thought. If you are treating it as a transaction through paypal for goods then I don't believe you are liable for the VAT and it will just be charged to me once the goods have entered the country.