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 Posted:   Jan 12, 2021 - 9:57 AM   
 By:   George Flaxman   (Member)

How can the UK force US companies to register for UK VAT. ?. This is in relation to UK residents buying CDs from US companies. What about Sovereignty.

Some companies are already imposing a minimum order lever of GBP135 below which they won't accept an order.

How big is the UK contribution to US companies ?.

 
 
 Posted:   Jan 12, 2021 - 10:09 AM   
 By:   Rameau   (Member)

Well it's just the UK right now, but from July (I think) it'll be all of Europe, so it depends how much they want the European business.

 
 
 Posted:   Jan 12, 2021 - 10:12 AM   
 By:   slint   (Member)

I can't even order from Music Box anymore. No way I will make each order 135£ and pay custom duty on top on that. I have no idea if orders from other EU stores will get through. Brexit keep on hurting us all with absolutely zero advantage.

 
 
 Posted:   Jan 12, 2021 - 10:29 AM   
 By:   JC   (Member)

I have no idea if orders from other EU stores will get through.

Every online shop from "overseas" has to collect UK VAT on orders < GBP135 on behalf of the UK customs authorities. Orders > GBP135 are subject to UK VAT and UK customs fees that are collected directly by the UK customs authorities.

 
 
 Posted:   Jan 12, 2021 - 10:35 AM   
 By:   JC   (Member)

Well it's just the UK right now, but from July (I think) it'll be all of Europe, so it depends how much they want the European business.

Not really, as the UK VAT collecting system is different from the EU VAT collecting system. US companies would have to register for two different VAT collecting systems.

 
 
 Posted:   Jan 12, 2021 - 10:41 AM   
 By:   slint   (Member)

I have no idea if orders from other EU stores will get through.

Every online shop from "overseas" has to collect UK VAT on orders < GBP135 on behalf of the UK customs authorities. Orders > GBP135 are subject to UK VAT and UK customs fees that are collected directly by the UK customs authorities.


I know but I am not sure how Quartet, Beat Records, Intermezzo, Saimel etc are dealing with this at the moment. Best case no one notices, but maybe it will be returned to sender?

 
 
 Posted:   Jan 12, 2021 - 11:00 AM   
 By:   JC   (Member)

I have no idea if orders from other EU stores will get through.

Every online shop from "overseas" has to collect UK VAT on orders < GBP135 on behalf of the UK customs authorities. Orders > GBP135 are subject to UK VAT and UK customs fees that are collected directly by the UK customs authorities.


I know but I am not sure how Quartet, Beat Records, Intermezzo, Saimel etc are dealing with this at the moment. Best case no one notices, but maybe it will be returned to sender?


I once sold a CD to someone from Australia. Ebay collected the Australian VAT and I had to write a code on the letter to show the Australian customs authorities and the postal service that the tax had already been paid.

 
 
 Posted:   Jan 12, 2021 - 11:15 AM   
 By:   Prince Damian   (Member)

I'm no expert but didn't the UK come to a deal/arrangement with Europe? Free trade or at least warm and fluffy trade. so quartet et.al should be ok .

 
 Posted:   Jan 12, 2021 - 2:30 PM   
 By:   MusicMad   (Member)

I'm no expert but didn't the UK come to a deal/arrangement with Europe? Free trade or at least warm and fluffy trade. so quartet et.al should be ok .

I don't think your assumption (hope) is valid. It's very confusing (says someone who's spent his working life in accounting et al.) but in summary: if the goods cost GBP135.00 or less then the seller (wherever they are based outside Great Britain) has to account to UK HMC&E for UK VAT (charged at the UK VAT rate) on the sale.

If the goods cost more than GBP135.00 then it is the importer (i.e. you or me) who has to account for the VAT.

Hence, at this time, many non-GB sellers are having to consider how they account for the VAT on such sales and, as an example, look at Music Box Record's website: https://www.musicbox-records.com/en/content/13-brexit

For more information see: https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk ... although dated pre: GB/EU Trade Deal it has not been amended, and

https://www.gov.uk/government/publications/notice-143-a-guide-for-international-post-users/notice-143-a-guide-for-international-post-users - section 2.

As well as VAT, also consider Customs / Excise duty, too.
I'm even more unsure about the effects on buyers resident in NI (I think HM Government is still trying to get an understanding).

Others have posted that changes for imports into the EU are imminent ... but for us (poor) GB residents, all imports, even those sourced from the EU, are now subject to these changes.

I just looked at buying a cheap CD (Eur 5,95) from Quartet ... the shipping cost (UK = Rest of the World) is now Eur 18,40 ...
Happy days ...
... now gone!

 
 
 Posted:   Jan 12, 2021 - 5:13 PM   
 By:   andy b   (Member)

I guess one answer is have a friend in the country of release, have the item sent to them & then have them re-send it with a lesser value and "Gift".

I recently sent a pack of 4 CDs to Birmingham UK & they got there no fees & no issue, I listed as 15 UK pounds & as a gift, just in case it was opened I even put a note in saying "happy birthday". It does make insurance void though as in Canada the value on the label is all a packet can be insured for.

Kind of bad having to pay twice the postage, local delivery then international, but is it cheaper than Customs?

Kind of sad for European collector, but I think it will come to other countries all trying to pay off Virus debt no doubt!

Andy b

 
 
 Posted:   Jan 12, 2021 - 10:54 PM   
 By:   Martin B.   (Member)

I guess one answer is have a friend in the country of release, have the item sent to them & then have them re-send it with a lesser value and "Gift".

I recently sent a pack of 4 CDs to Birmingham UK & they got there no fees & no issue, I listed as 15 UK pounds & as a gift, just in case it was opened I even put a note in saying "happy birthday". It does make insurance void though as in Canada the value on the label is all a packet can be insured for.

Kind of bad having to pay twice the postage, local delivery then international, but is it cheaper than Customs?

Kind of sad for European collector, but I think it will come to other countries all trying to pay off Virus debt no doubt!

Andy b


I don’t know how Gifts work now, and the 15 pound limit won’t work anymore as the EU have abolished the Low Value exemption.

Not sure where Intrada, La-La land, movie music are on this. There is nothing on their websites and checkouts aren’t showing the VATso for me at the moment purchases are on hold until things clear up.

 
 Posted:   Jan 12, 2021 - 11:26 PM   
 By:   MusicMad   (Member)

I guess one answer is have a friend in the country of release, have the item sent to them & then have them re-send it with a lesser value and "Gift".

I recently sent a pack of 4 CDs to Birmingham UK & they got there no fees & no issue, I listed as 15 UK pounds & as a gift, just in case it was opened I even put a note in saying "happy birthday". It does make insurance void though as in Canada the value on the label is all a packet can be insured for.

Kind of bad having to pay twice the postage, local delivery then international, but is it cheaper than Customs?

...
Andy b


And there was me ... thinking we were all honest citizens!

Puzzle for today ... who can make a word using all of the letters: A D F R U ?
smile

 
 
 Posted:   Jan 13, 2021 - 1:45 AM   
 By:   Hurdy Gurdy   (Member)

Yes, imagine if the rich and powerful were avoiding paying their taxes with loopholes and off-shore accounts and tax havens and such.
Where would we all be then?
Heaven Forbid!!

 
 Posted:   Jan 13, 2021 - 2:29 AM   
 By:   Doug Raynes   (Member)

How can the UK force US companies to register for UK VAT. ?. This is in relation to UK residents buying CDs from US companies. What about Sovereignty.
.


I've wondered that as well. I assume they're able to do it under international customs agreements.

What's not clear is what happens if a seller doesn't add VAT to the total cost of a sale. In theory UK Customs can seize the package and/or return it to the sender but there's no way Customs can examine every small package.

 
 Posted:   Jan 13, 2021 - 2:42 AM   
 By:   Bill Carson, Earl of Poncey   (Member)

"Major...right now you got me about as confused as i ever hope to be..."

 
 
 Posted:   Jan 13, 2021 - 2:48 AM   
 By:   JC   (Member)

I just read that most or all EU postal services only accept letters containing merchandise and packages to non-EU countries if the sender provides the customs declaration in electronic form. Every letter containing merchandise and package to non-EU countries gets a tracking code for customs purposes. As the low value exemption was abolished in the UK, there is no way to avoid VAT. Sellers could fraudulently declare a lower customs value, but they still have to register for the UK VAT collecting system.

 
 
 Posted:   Jan 13, 2021 - 2:59 AM   
 By:   Martin B.   (Member)

How can the UK force US companies to register for UK VAT. ?. This is in relation to UK residents buying CDs from US companies. What about Sovereignty.
.


I've wondered that as well. I assume they're able to do it under international customs agreements.

What's not clear is what happens if a seller doesn't add VAT to the total cost of a sale. In theory UK Customs can seize the package and/or return it to the sender but there's no way Customs can examine every small package.


They can't force oversees companies to register but it is a requirement for selling goods to that country. If companies outside the UK don't wish to do this then they don't accept orders from UK customers. From the 1st July, if they don't register for European Tax then they won't be able to sell to European customers either.

In theory any parcel coming into the UK (or Europe from 1st July) without a customs declaration declaring the tax has been paid that is under £135 then that parcel will be seized / returned to sender. Anything over £135 I believe they will collect the tax from the recipient, along with a nice fee for the privilege no doubt. The Low Value Exemption has been removed from in the UK and will be removed in Europe. I had hoped that this would be one European law the UK wouldn't adopt after Brexit but we did.

I suspect many companies are not aware of this change.

 
 
 Posted:   Jan 13, 2021 - 3:32 AM   
 By:   Rameau   (Member)

These are early days, I'm hoping things will sort themselves out in a month or two.

 
 
 Posted:   Jan 13, 2021 - 3:58 AM   
 By:   Hurdy Gurdy   (Member)

These are early days. I'm hoping things will sort themselves out in a year or two.

Fixed that for you Ram wink

 
 
 Posted:   Jan 13, 2021 - 4:07 AM   
 By:   ghost of 82   (Member)

Looks like I've bought my last soundtrack from the EU and the La La Land, Intrada etc.

My wallets smiling but it's pretty sad.

 
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