UK shot themself in the foot, UK import VAT change

TLDR/W: If you sell goods to UK from outside of it, to an individual customer and the value of the items is less than 135£. YOU need to charge and file VAT to UK’s tax system.

I am not registering/creating an UK VAT-number or paying tax to them, if I’m selling and shipping items from Finland. I want to sell goods to UK customers, but I guess I won’t be doing that with this BS happening, sorry for everybody that is affected by this.

image

38 Likes

i hate these stupid new laws and im in the uk myself

6 Likes

But if you’re outside the country, what are they going to do to make you pay?

12 Likes

This is really fucking with us as well. Had to rush ship a bunch of UK orders before all this went down. I don’t want to apply for a UK vat and deal with the legal shit storm that will ensue over the next 5 years.

7 Likes

Very good question,
They probably can’t do anything to make you pay, but probably will return all your shipments back to you, if they get noticed in the customs.

4 Likes

I guess that is the only option they have got, but they will need a very good customs service to cover all shipments so I’m pretty sure they will have to change that or just let slip a shitton of packages

What happens for orders over 135£?

Edit:

Just normal vat and customs on import. I’m gonna need to start charging more. Thanks guys.

/s

9 Likes

I’m not sure if this is meant to apply to sales that are already over 135£ or to sales that are “inflated” to be over 135£

EDIT:

2 Likes

Welp this is certainly a ginormous clusterfuck.

7 Likes

greedy fucks

3 Likes

When they refer to OMPs (Online MarketPlaces) I think they mean services like Ebay and Amazon and if you sell your goods through them, it’s their responsibility to add the 20% VAT to the goods if the total is under 135£ and then account and file that to UK.

2 Likes

They don’t even want to bother to charge you VAT at the customs.
They want the overseas businesses to give it to them :astonished:
I see a lot of: “Will not ship to the UK” in future listings…

13 Likes

This is what I think it’s as well. They can’t handle the import VAT filing themselves, due to I imagine huge import volumes, so they are instead shifting the responsibility of filing them to the seller, as they seem to be missing quite a lot of potential revenue in the import VAT.


https://www.avalara.com/vatlive/en/vat-news/uk-ecommerce-2021-vat-changes-for-sellers---marketplaces.html#:~:text=The%20UK’s%20HMRC%20has%20overhauled,ecommerce%20from%201%20January%202021.&text=The%20new%20UK%20ecommerce%20reforms,certain%20transactions%20by%20there%20sellers.

4 Likes

The whole concept is stupid. This is a first.
I have never seen a country wanting to make the seller from another country responsible for collecting its taxes.

6 Likes

asking the seller to pay that country’s import tax is just plain stupid, nobody is gonna agree to that

4 Likes

But we need to think about some solution. Since there are probably not many outside UK who are excited about registering a bunch of VAT numbers and doing some payments and reports, what other options do we have?

  • B2B
  • Group buys (goal is to move amount above 135 for smaller orders)
5 Likes

B2Bs I reckon

msybe someone like @anubis can hold large amounts of your stock and up the price slightly for him to make a profit

1 Like

also doesnt this law only take into effect in around 4 months

The way I see it if my business were to lose a considerable amount of income from the loss of sales in the UK, I would consider jumping through all the hoops.
Otherwise I would simply stop selling stuff there and be done with it.

5 Likes