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 Posted:   Jan 20, 2021 - 2:43 AM   
 By:   MusicMad   (Member)

Back on this thorny subject, but specifically re: UK imports from the EU, I caught an article on this morning's BBC R4 Today programme which provided some clarification.

In summary: Gifts up the value of GBP39.00 - no import VAT or duty (and hence no handling charge)

From GBP39.00 - 135.00 - VAT levied at UK rate (typically 20%) + handling charge
Above GBP135.00 - Duty (variable 0% - 25% dependent upon product) + VAT + handling charge. (I believe VAT is payable on any Duty levied; the Handling charge may also be VATable)

Not specified was non-gifts (i.e. commercial purchase) below GBP39.00 (but do bear in mind that a package marked as Gift when is not, is fraud)

Before the tax specialist spoke, a lady who had sought to buy clothes (from EU retailers) was surprised to find additional charges were due and hence refused to accept the goods.

The article referred to the Government's Tariff Checker Website but said it is not easy to use! In conclusion the tax specialist suggested that "EU Business - UK Consumer" sales will come to a stop ... until some of these rules are eased

Regretfully, no mention of CDs generally or Soundtracks smile

If you want to listen: https://www.bbc.co.uk/sounds/play/m000rdkj - starting at 16'15"
Tax specialist: https://www.uhy-uk.com/uhy-people/michelle-dale
Government website: https://www.gov.uk/trade-tariff

Note that CDs ordered and paid for pre 01 Jan 21 should be treated for delivery under the previous rules but how this could be determined when the package arrives later this month may not be as easy as saying to the delivery man: I bought this last year ... there's no VAT, etc. to pay! smile
Mitch

 
 
 Posted:   Jan 22, 2021 - 10:20 AM   
 By:   Sabreman   (Member)

Well, US sites such as La La Land, Screen Archives and Intrada are going to have to do something in July about adding VAT at point of sale as that's when it comes into force in the EU. Or maybe these US retailers and soundtrack labels are planning to stop selling to Europe entirely and are happy to lose their business in a market of 28 countries with a population of over 500 million people?

 
 
 Posted:   Jan 22, 2021 - 2:16 PM   
 By:   paulw   (Member)

Well, US sites such as La La Land, Screen Archives and Intrada are going to have to do something in July about adding VAT at point of sale as that's when it comes into force in the EU. Or maybe these US retailers and soundtrack labels are planning to stop selling to Europe entirely and are happy to lose their business in a market of 28 countries with a population of over 500 million people?

It will depend if they can do it easily. They may say it's too hard and if the demand is small they will just ship and you sort it out at your end much the same as they do when they ship to the likes of New Zealand and Australia ..
They may be able to do it as a variant of shipping to US states that have different rates of sales tax.

 
 
 Posted:   Jan 22, 2021 - 2:43 PM   
 By:   slint   (Member)

Sigh, Music Box have now removed the option to combine small orders for UK residents. It is now 150 euros or nothing.

Their news item is named "Brexit Information" so don't tell me it's not related to Brexit.

 
 
 Posted:   Jan 23, 2021 - 2:01 AM   
 By:   JC   (Member)

Well, US sites such as La La Land, Screen Archives and Intrada are going to have to do something in July about adding VAT at point of sale as that's when it comes into force in the EU. Or maybe these US retailers and soundtrack labels are planning to stop selling to Europe entirely and are happy to lose their business in a market of 28 countries with a population of over 500 million people?

new rules for EU countries
https://ec.europa.eu/taxation_customs/customs-procedures/customs-formalities-low-value-consignments_en
https://ec.europa.eu/taxation_customs/sites/taxation/files/guidance_on_import_and_export_of_low_value_consignments_final.pdf

It seems that the new EU rules only affect the import of goods by consumers, not companies. As there are quite a lot of soundtrack shops within the EU, the US labels wouldn't lose any business.

 
 
 Posted:   Jan 23, 2021 - 2:27 AM   
 By:   Simon Underwood   (Member)

I love that one of the things this has highlighted is we don't have a single proper shop for this in the UK. Not one, anywhere (discounting Varese's dedicated shop)

It reminds me of whenever I see a Support your Independent Local Bookseller! drive online, and I'm reminded that, despite living in what's supposedly a major city... I don't have one. We have Waterstones, and WH Smiths, and that's IT.

 
 
 Posted:   Jan 23, 2021 - 2:30 AM   
 By:   Spymaster   (Member)

If (and it's a big "if") US stores stop shipping to EU customers then I can see somewhere like Music Box becoming a central hub for sales of US releases across Europe. Placing an order of 2 x Intradas, 2 LLLs, a Quartet and a Music Box title, for example, is easily over that $150 threshold.

 
 
 Posted:   Jan 23, 2021 - 2:33 AM   
 By:   KeV McG   (Member)

But isn't saving up a big order with Music Box just gonna hit YOU/ME with a nice big VAT charge on top of it?

 
 
 Posted:   Jan 23, 2021 - 2:37 AM   
 By:   Spymaster   (Member)

But isn't saving up a big order with Music Box just gonna hit YOU/ME with a nice big VAT charge on top of it?

Potentially, yes. Though, theoretically, centralising orders could save dramatically on postage...

 
 
 Posted:   Jan 23, 2021 - 2:39 AM   
 By:   JC   (Member)

But isn't saving up a big order with Music Box just gonna hit YOU/ME with a nice big VAT charge on top of it?

Yes, but you don't have to pay the French VAT (20%). If you make an order of >130GBP, you will pay only the net price at the checkout.

 
 Posted:   Jan 23, 2021 - 1:47 PM   
 By:   Ian J.   (Member)

----

Well, US sites such as La La Land, Screen Archives and Intrada are going to have to do something in July about adding VAT at point of sale as that's when it comes into force in the EU. Or maybe these US retailers and soundtrack labels are planning to stop selling to Europe entirely and are happy to lose their business in a market of 28 countries with a population of over 500 million people?

new rules for EU countries
https://ec.europa.eu/taxation_customs/customs-procedures/customs-formalities-low-value-consignments_en
https://ec.europa.eu/taxation_customs/sites/taxation/files/guidance_on_import_and_export_of_low_value_consignments_final.pdf

It seems that the new EU rules only affect the import of goods by consumers, not companies. As there are quite a lot of soundtrack shops within the EU, the US labels wouldn't lose any business.


----

I love that one of the things this has highlighted is we don't have a single proper shop for this in the UK. Not one, anywhere (discounting Varese's dedicated shop)

It reminds me of whenever I see a Support your Independent Local Bookseller! drive online, and I'm reminded that, despite living in what's supposedly a major city... I don't have one. We have Waterstones, and WH Smiths, and that's IT.


----

Part of the problem of soundtrack collecting is critical mass of purchasers within a jurisdiction. The U.S. and E.U. may be big enough to support a shop or two, but the U.K.'s soundtrack community just doesn't appear to be big enough to support a dedicated commercial import business.

One solution might be for an existing U.K. business with an interest in media to take on the task. It makes me wonder if Silva Screen might be able to branch into being a U.K. distributor. However, there would need to be easy access to all new releases from all labels, and I don't see that happening, again due to the market being too small.

 
 Posted:   Jan 23, 2021 - 1:50 PM   
 By:   Ian J.   (Member)

Has anyone in the UK placed an order with La La Land, Screen Archives, MovieMusic or Intrada since January 1st? If so, what happened to the order?

I did, with SAE on January 9th. It's still pending.

 
 
 Posted:   Jan 24, 2021 - 12:09 AM   
 By:   JC   (Member)

2021 changes to VAT regulations in UK and EU --- from ebay.co.uk

https://sellercentre.ebay.co.uk/global-sales/2021-vat-changes

 
 
 Posted:   Jan 24, 2021 - 12:12 AM   
 By:   MMM   (Member)

Stamps.com told me all Monstrous Movie Music orders from the UK required I sign up for VAT. I spent about 17 hours trying to make sense of their stupid UK website. I think when I was done I had mistakenly ordered five pounds of English Breakfast Tea. What a nightmare!

 
 Posted:   Jan 24, 2021 - 3:16 AM   
 By:   MusicMad   (Member)

Stamps.com told me all Monstrous Movie Music orders from the UK required I sign up for VAT. I spent about 17 hours trying to make sense of their stupid UK website. I think when I was done I had mistakenly ordered five pounds of English Breakfast Tea. What a nightmare!

smile
Having searched out the website you mention, I find its description of the changes very enlightening ... surprisingly clear. Except: I'm not sure it's correct when it describes the procedure for collecting VAT, etc. on consignments over GBP135 (USD180) where it states ... will be paid to HMRC directly by the parcel consolidator, who then normally invoices the online retailer.

https://stamps.custhelp.com/app/answers/detail/a_id/7318/~/shipping-to-the-uk-2021

Yes, the parcel consolidator (e.g. Royal Mail) will deal with these formalities but I thought it (i.e. RM) would then levy the UK customer with these charges (plus its handling charge) in order to release to goods. I can't see RM sending an invoice to the US online retailer ...

The prior system in the UK for goods received not exempted by Low Value Relief followed this procedure.

I must admit I wait to read, in a year or so, just how much HMRC has levied on overseas online retailers for late payment of the VAT ... and how much of said fines has not been collected! smile
Mitch

 
 Posted:   Jan 24, 2021 - 5:48 AM   
 By:   wayoutwest   (Member)

The whole thing is farcical it is starting to sound like the spamdemic itself.

Guess it is not much difference in some other ways from the past when they collected the daylight robbery taxes. Tax on how big the windows you had in your house, just another way to suppress the people.

 
 
 Posted:   Jan 24, 2021 - 8:34 AM   
 By:   AJL   (Member)

As I have already written in another thread on this topic, I believe the ideal solution would be for Intrada and LaLa to join with Varese in selling their new releases through the same distributor in the UK. The cost per CD would be higher taking into account a number of factors including VAT. But the shipping costs would be negligible on small orders.

I recently ordered and received Looney Tunes in four days at a cost of only £3.50 for 1st class delivery including tracking. Without tracking it would have been only £2.00.

A perfect service for UK collectors who wish to order just one or two CD at a time.

 
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