Changes with buying parts from the US

[FAB Cruiser]

Hi guys,

Just been reading the small print on changes from 1st Jan which will effect parts purchased from the US.

The £15 threshold below which you can avoid VAT is gone.

VAT must now be charged and collected by the SELLER for all items up to £135 (excluding cost of shipping, insurance).

For goods over £135, we get charged VAT and Duty (usually 2.5% on car parts) on everything including shipping when the goods are DELIVERED this end (usually with the unpredictable ‘handling charge’). This bit isn’t changing.

Apart from the additional 20% on sub £15 items which is negligible, what worries me is for anything under £135, the seller now has to register with HMRC and collect the VAT to sell to the U.K. I can see a lot of companies in the States deciding it’s not worth selling to the U.K. in the future because of the additional hassle!

I’m yet to figure out what this means for forwarding services such as MyUs and Stackry and how the VAT gets collected

So if you’re thinking of getting some smaller parts, I suggest you order NOW!

I’m looking at a shifter from WM Garage myself!

Cheers
David

Sponsored

 

[Gregs24]

Hi guys,

Just been reading the small print on changes from 1st Jan which will effect parts purchased from the US.

The £15 threshold below which you can avoid VAT is gone.

VAT must now be charged and collected by the SELLER for all items up to £135 (excluding cost of shipping, insurance).

For goods over £135, we get charged VAT and Duty (usually 2.5% on car parts) on everything including shipping when the goods are DELIVERED this end (usually with the unpredictable ‘handling charge’). This bit isn’t changing.

Apart from the additional 20% on sub £15 items which is negligible, what worries me is for anything under £135, the seller now has to register with HMRC and collect the VAT to sell to the U.K. I can see a lot of companies in the States deciding it’s not worth selling to the U.K. in the future because of the additional hassle!

I’m yet to figure out what this means for forwarding services such as MyUs and Stackry and how the VAT gets collected

So if you’re thinking of getting some smaller parts, I suggest you order NOW!

I’m looking at a shifter from WM Garage myself!

Cheers
David

Probably already too late !

 

[raptor17GT]

thats gonna be a blow for buying the little bits and bobs that are non car related too. Damned politicians and their oven ready / easiest deal in the world promise

 

[GR11M]

Just a get rich quick scheme to recoup the losses from bad trade deals with Brexit.

Use Stackry to consolidate the boxing to save weight on shipping costs and then "re-evaluate" the value for taxing

 

[FAB Cruiser]

Just a get rich quick scheme to recoup the losses from bad trade deals with Brexit.

Use Stackry to consolidate the boxing to save weight on shipping costs and then "re-evaluate" the value for taxing

But the VAT for goods under £135 has to be applied at the point of sale. If they don’t apply the tax because they’re shipping to a US address (which would be the case with Stackry) I’m not sure who collects the VAT, because Stackry won’t. I think this is going to take a while to become clear!

 

[GT 550]

Shipments will probably need to have an invoice showing the tax was collected, if it's not there HM Customs might hold the parcel until it's paid. Re posting via Stackry etc the vendor will likely need payment from a US credit card ie issued to a US citizen. Yes, a lot of vendors will probably decide the cost/benefit isn't right.

Also make sure you know what total sum you're liable for VAT on, over here tax needs to be paid on not only the cost of the item/s but also all freight.

(We were once able to bring in goods under AUD1000 tax free but they stopped that because businesses lobbied govt, the cost to consumers goes into improving the bottom line for big business and buying jobs for people by propping up a whole bunch of small middle-man businesses that are borderline unviable. Protectionism alive and well /rant)

 

[GR11M]

But the VAT for goods under £135 has to be applied at the point of sale. If they don’t apply the tax because they’re shipping to a US address (which would be the case with Stackry) I’m not sure who collects the VAT, because Stackry won’t. I think this is going to take a while to become clear!

I would assume that the courier would collect it.
Although if the tax is collected at source that would mean we won't have to pay the £8-12 processing fee the couriers charge.

 

[V8_MOTOR]

Best thing to do is to have a relative in the US. Ship to their address and they forward to you...

As far as I'm concerned. The music has stopped and people are still dancing but dependant on your point of view, you might say the music has started and people are dancing.

 

[GR11M]

Best thing to do is to have a relative in the US. Ship to their address and they forward to you...

Hmm maybe we can offer to send British goods in return to the US in some sort of trade deal ?

 

[raptor17GT]

Tunnocks Tea Cakes? Irn Bru..

Hmm maybe we can offer to send British goods in return to the US in some sort of trade deal ?

 

[V8_MOTOR]

Hmm maybe we can offer to send British goods in return to the US in some sort of trade deal ?

Sounds like we would have to rely on politicians. Probably easier to just move to the EU or the USA or Canada.

 

[GR11M]

Sounds like we would have to rely on politicians. Probably easier to just move to the EU or the USA or Canada.

I would love to do it but I'm not qualified, I only have 1 house

 

[GR11M]

Tunnocks Tea Cakes? Irn Bru..

I was thinking more of contraband

 

[Entai]

Thought this VAT collected by seller was already a factor for Non EU countries selling to UK?

The only change is it now effects countries in the EU selling to the UK.

I always thought it was why so many US companies don't sell direct to UK already (Pre Brexit).

 

[v8hgt]

Damn. Bit late now. Bloody brexit has screwed us over in yet another way! Getting quite tempted to emigrate to Scotland now and await them gaining independence from Brexit Britain, then rejoin the EU to regain my European citizenship.

Sponsored