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.

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

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

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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.

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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.

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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

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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:

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Welp this is certainly a ginormous clusterfuck.

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greedy fucks

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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.

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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…

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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.

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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.

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

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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)
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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

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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.

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