So we have all enjoyed the odd bargain direct from China, Tax free! But come the 1st January 2021 here in the UK things are about to change.
A few people are thinking that small purchases won't be affected. Sorry, they will. The £15 VAT-free limit is being abolished. Even if you only want £1 rubber glass hammer along with a matching left-handed spanner, the firm will have to register and pay the tax up front.
The only saving grace is that private sales between individuals, and gifts, will still be tax-free up to £39.
With goods sold via on-line marketplaces like ebay, Amazon etc, the onus will be on the marketplace, not the individual trader, to register for VAT.. Whatever, it's the consumer that will suffer.
Link to official HMG website: HMRC
This how I understand the rules so far:
Tax on everything!
But it's ebay and Amazon that collects it. No more stupid Royal Mail tickets through the door.
One bonus is that VAT wont be levied on shipping etc, only the value of goods.
Paying 20% VAT on nowt all, is nearly nowt, so it's not really a big deal for us ebayers. For example 100 1N4148's for a Quid is only going to cost you 20p more, is that really going to break the bank?
But the likes of AliExpress might be screwed if they don't wanna register a UK VAT number? Maybe they will find another route in through the back door?
Individual traders may suffer selling to the UK, unless they opt to sell via ebay which saves them registering.
But prices to us all still go up.
Mixed bag really.
Glad I've stockpiled a few bits.
The VAT question is VALUE to whom ?
The Beetles had it right years ago … TAX MAN … “if it gets too cold we’ll tax your Heat”!
And, to Americans, the Tea Tax led to the largest tea pot .. Boston Harbor! (1775)
Well the idea is that something is worth more if value is added, seed into grain, grain into flour, flour into bread, so those increases are taxed at each stage. Since the bread buyer is at the end of the line the consumer pays all the other taxes that were passed on in the price of each commodity. Logical and terribly regressive. In the States they’ve been talking about this for 50 years, but it is so politically unpopular that we’ve ducked it. For now, at least.
Don’t care. At least you’re weakly leaving the EU. How long will the weak British stay in the EU?
Our socialist government did the same thing here in NZ – the local retailers were complaining about the uneven playing field – really?
I purchased some reverse camera’s out of China for $6.99 delivered to my door BEFORE the 15% GST on overseas purchases came in . . . then discovered that the local branch of an Australian auto store had the SAME camera on sale for $62.95. Even if the tax had been 100% on my import ($13.98)it would still have been greater than FOUR times cheaper!
So the retailers are happy this has been brought in? Won’t get my custom!
Am I happy or am I losing money? No not happy stuff is costing me more but happy because I can STILL get stuff cheaper than local store ripoff.
Only one winning is the government – who now gives the money away to the “wasters”