Import tax/VAT from europe.

[tigerman]

I am totally confused now about buying a model from Europe .Before Brexit the model I want in Europe was 385 Euros and it was free postage .The model I want is still 385 Euros .So I now have to pay extra duty on top of the 385 Euros .So I read it that buying from Europe has just become a lot more expensive then .If that is right and I have to pay a duty on top of the 385 euros Europe can get stuffed if that is how it is

[BackinBlack]

Assuming a VAT rate of 21% for the suppliers country (VAT rates vary across EU) then they should sell to you at €318.18 = £283.20. Delivery cost depends on supplier and chosen courier, guess at £20. The courier will then charge you 20% UK VAT - £56.64 for the goods plus their fee and handling charge, DPD currently quote £3.50 (they don't make it easy to find such info).

Total cost £283.20 + £20 + £3.50 = £306.70 plus 20% VAT £61.34 = £368.04

That's how it should work, whether it does......... You'll only find out if you know which courier is to be used and ask them directly.

[tigerman]

Thanks BackinBlack .That explained it great .Think I am being rip off then the supplier still wants to charge me the full 385 euros for the model +delivery .Mmmmmmmmmmmmmmmmm

[Dickw]

Posted by tigerman on 25/01/2021 11:45:54:

I am totally confused now about buying a model from Europe .Before Brexit the model I want in Europe was 385 Euros and it was free postage .The model I want is still 385 Euros .So I now have to pay extra duty on top of the 385 Euros .So I read it that buying from Europe has just become a lot more expensive then .If that is right and I have to pay a duty on top of the 385 euros Europe can get stuffed if that is how it is

For some of the items I buy, the only source is the manufacturer in Europe. If I want the product it looks like I am just going to have to pay more thanks to our HMRC rules.

The only person getting stuffed is me!

Dick

Edited By Dickw on 25/01/2021 12:36:33

[Dickw]

Posted by tigerman on 25/01/2021 12:34:20:

Thanks BackinBlack .That explained it great .Think I am being rip off then the supplier still wants to charge me the full 385 euros for the model +delivery .Mmmmmmmmmmmmmmmmm

The supplier has the option of registering for UK VAT with HMRC and collecting it on behalf of HMRC. Have you checked to see if that is what they are doing?

Dick

[Roger Jones 3]

52% of the 77% who voted are getting what they voted for

[Phil McCavity]

Posted by Roger Jones 3 on 25/01/2021 14:47:29:

52% of the 77% who voted are getting what they voted for

This was never voted for, it's a directive from the EU commitee that will be implemented for the rest of the EU in July, in or out it was going to happen.

[Martin Harris - Moderator]

I received an email from a firm I do business with occasionally and they give the following advice regarding exports to the EU:

What extra costs will there be?

We have reviewed our shipping prices and we are pleased to confirm that we will maintain our prices at the same level as last year. DPD charge a small admin fee to cover customs clearance costs, this has been set at 5-6 Euro per consignment depending on the country. There may be between 0-4% duties, subject to country of origin. VAT and any duties will be payable directly to DPD.

What I find interesting is the pricing for admin costs. Does anyone know what DPD charge UK customers for the same service?

[tigerman]

Anyone had any experience with buying from Europe .Just contacted the supplier and they have deducted the UK VAT from the price of the model but I noticed that I am out of pocket with that ,(it is not 20% less ) then I have to pay the courier the VAT which is more then the supplier deducted for the model ,so I am already out of pocket then I have to pay the exchange rate from from Euros to pounds ,then the credit card charges a fee to exchange the Euros into pounds and to cap it all the courier adds £12 admin fee so a model that cost £380 turnout to cost £424 .That is £44 more then advertised ,plus all the hassle of delivering it from Holland and and getting stuck in Customs .Cancelled the order and brought a FMS model from my local Model Shop Can not see me buying anything from the EU again

[Geoff S]

Mastercard are quadrupling their charges to EU suppliers selling to the UK. Even buying from a UK supplier isn't always a way of avoiding the problem as often the actual goods are sent from an EU country. That may well apply to Amazon who are based in Luxembourg and the Irish Republic. I've read reports that UK companies have been advised by government agencies (HMRC?) to set up subsiduries in an EU country to minmise costs - presumably to export in bulk to their EU base and then post to indiviual customers.

We have to accept we're living in a smaller country now - at least for a time.

Geoff

[tigerman]

It is all good news for the UK model suppliers .I will not be paying those hidden charges .I will stick with UK .The ironic thing is the model I wanted to buy from Europe turns out it is cheaper to buy it from the same company in the USA even if you include the postage from the USA .That if you want to wait ages for delivery and hope it is all OK when it arrived and do not have to send it back

[Nigel R]

It really isn't. Their potential market has just been slashed. The eu shops will do just fine as their market had not been reduced by very much at all.

[Denis Watkins]

This morning's BBC news reports of some surprise price hikes on gifts from the EU

I expect the dust to settle with time passing

 

Edited By Denis Watkins on 26/01/2021 08:17:58

[Basil]

Tigerman, re your comments that its cheaper to buy from the USA. Dont forget the import Duty, or is it not payable on kits.

Bas

[Frank Skilbeck]

Posted by Denis Watkins on 26/01/2021 08:14:52:

This morning's BBC news reports of some surprise price hikes on gifts from the EU

I expect the dust to settle with time passing

Edited By Denis Watkins on 26/01/2021 08:17:58

Details here looks like this is the new normal so we will just have to get used to it, hopefully as sellers become conversant with the charges then they will make the additional costs clear on their websites as it doesn't help them if buyers just return the goods instead of paying the fees.

[FilmBuff]

Not great eh? For some members, it's a case of be careful what you wish for.

[Phil McCavity]

Posted by Nigel R on 26/01/2021 06:54:29:

It really isn't. Their potential market has just been slashed. The eu shops will do just fine as their market had not been reduced by very much at all.

It really is. Their potential market has actually now increased because the attraction of buying from the continent compared to buying from the UK is no longer attractive. Saying that the the EU will do just fine is going off point really' it's more complex than that. In some cases EU companies will carry on doing just fine as their market was unaffected by the UK but others will be reduced significantly. We're already seeing feelings that consumers are going to change their buying habits.

We were being told over the past 4 years that we are a consumer nation that relies significantly on the Euro market, if that's true then by it's nature that means the Euro market depends on us so it will be affected significantly by the changes. Which is it?

Edited By Phil McCavity on 26/01/2021 10:54:42

[Nigel R]

Indeed.

And the stuff made in the EU, then imported into the UK by a shop, then resold by that shop... also affected, I believe.

[Phil McCavity]

Posted by Nigel R on 26/01/2021 12:12:31:

Indeed.

And the stuff made in the EU, then imported into the UK by a shop, then resold by that shop... also affected, I believe.

 

 

.....which leaves opportunities for home enterprise. These are early days, things change as we adapt to another new normal.

If it's true that EU companies really did rely on our consumerism then they will have to adapt as well.

As stated several times in the thread this is a EU directive that will be implemented by all member states from July, it's outside of our exit 26 days ago. It was going to happen anyway.

Edited By Phil McCavity on 26/01/2021 12:43:51

[Geoff S]

Posted by Phil McCavity on 26/01/2021 10:41:28:

We were being told over the past 4 years that we are a consumer nation that relies significantly on the Euro market, if that's true then by it's nature that means the Euro market depends on us so it will be affected significantly by the changes. Which is it?

The difference is that the UK now has limited access to the 27 countries still in the EU. Similarly those 27 countries have limited access to just one country to which they were formerly closely allied but still have easy access to each other. So their loss is much less than ours though it still exists to a small degree.

Geoff

[Nigel R]

We import(ed) far more "stuff" than we export.

We export(ed) "services".

However. Point to note. Lots of those services were insurance and banking. Many of those companies have easily relocated - guess where? Do you think, therefore, the EU will continue to rely on the UK?

Geoff S gets it.

 

Edited By Nigel R on 26/01/2021 13:42:16

[John Stainforth]

Geoff S and Nigel R get it. To argue that the EU market is affected equally by these changes is rather like arguing that, when a model plane crashes, the ground and the model plane are affected equally.

[Phil McCavity]

"We imported far more than we export" Then they relied on income from us more than we from them so they will need to adapt to address that. We now have the advantage to look outside the EU for what we need if necessary without the restrictions of before unlike the remaining EU states.

"We exported services" We still can, our exports as you have acknowledged are far less than our imports.

There's a reason they chose to trade with the UK rather than the other 27 states that they could've equally traded with, if that reason hasn't changed then they will continue to do so. From July they will have the same placed on each state as we have now so resetting some of the balance. Their loss is from a major income provider and shouldn't be underplayed. Because our exit coincides with this we can now trade with the RoW without the restrictions imposed on the member states so some loss is negated. We will adapt, we will continue to build a strong economy and remain a G5 nation. The vacuum caused is an opportunity for UK enterprise to fill and take full advantage of.

Once again: We never proposed these changes, the EU committee did. If you really feel the need to vent your spleen at anybody they should be your target not the government nor the voter. That's the point you need to accept to "Get it".

 

Edited By Phil McCavity on 26/01/2021 14:45:06

[Phil McCavity]

Posted by John Stainforth on 26/01/2021 14:01:47:

Geoff S and Nigel R get it. To argue that the EU market is affected equally by these changes is rather like arguing that, when a model plane crashes, the ground and the model plane are affected equally.

It's nothing like it.

I'm not trying to argue that we're equally affected by the changes rather that the portrayed effect on here is being exaggerated to favour the EU over us.

Once again for the umpteenth time: These changes were an EU directive, they were coming anyway, the EU will fall into line from July.

Edited By Phil McCavity on 26/01/2021 14:27:45

[Martin Harris - Moderator]

I'm not sure that this thread isn't straying a little too far into the territory of political discussion. Could we try to relate it to the impact on model flying and how we can best proceed when purchasing or sending items to EU countries?