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Aliexpress VAT charges


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Just a heads up for everyone regarding Aliexpress. This is not a whinge, but information for the unwise.

As of the beginning of January Aliexpress are charging U.K. customers 20% VAT on all purchases. Including those that would normally fall below the threshold value for importing goods from abroad. So buying from Aliexpress is now exactly the same as buying from the U.K. You may make savings as long as you don't mind waiting longer for the goods.

I have had some good deals on there, but now will have to be a bit more careful when comparing prices.

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Posted by Stuphedd on 10/01/2021 16:08:57:

I also got caught out on an item I bought from ebay last week for £12 , when I came to pay for it , it was £14.40 !!

Not there till I read the small print , so yes beware !!! and it was a RC part !!

Then I suppose you had to pay the rip off "handling" charge? I do not have any probs with VAT etc. Its just the way out of proportion amount.

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  • 2 weeks later...

H all,

I have no problem with the 20% VAT gouge but excessive handling charges for a sub £15 order are outrageous. I only quote £15 as this was the low liability limit and I am used to keeping my r/c parts orders under it whenever possible.

In the past I have used ebay, Banggood and Aliexpress with very few problems and my small orders paid for before Jan 1st 2021 have arrived this month via courier and Royal Mail without any additional tax or duty or handling charges. I am reluctant to consider buying any more direct from China until someone can pass on first hand experience of doing so this year. As I understand the situation now (and please correct me if I am wrong) it is up to the overseas Seller to collect VAT and all packages will be handled through UK Customs resulting with e.g. Royal Mail charging an £8 handling fee to deliver them. So, this being true : that £10 advertised bargain item with free postage from China could end up costing £20 !!!

Rip off Britain? You bet!!

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"As I understand the situation now"

I don't think you do.

The larger shops and shopfronts (ebay, amazon) will undoubtedly register with HMRC.

Anything you buy from HK EU/HongKong or BangGood or Aliexpress should have VAT applied at point of sale and no handling charge.

We have had years of the benefit of being able to dodge VAT on small purchases from abroad. No longer.

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Hi Nigel,

Thanks, that is my understanding too. I have just bought a mini receiver on ebay from a Chinese Seller. The price included VAT but is still under £10. It is to be shipped via Economy Speed Pack (normally delivered by my postie) so I shall be interested to see if there any handling fees involved. If Royal Mail send me an £8 demand they can send it back!!

Regards,

John.

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Whilst the bigger suppliers like Amazon etc will find it worth registering for UK VAT smaller ones will find it too onerous. So a lot of the specialist model shops/suppliers in the EU will opt out of selling to the UK and concentrate on their bigger market within Europe. Certainly for those that do continue to supply UK buyers the recipients will have handling charges on top of VAT/duty which is likely to increase the price significantly.

Geoff

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Since there is a cost to register for UK VAT plus ongoing additional admin costs to the supplier, it seems possible that the small specialist european manufacturer/supplier will have three options:-

1) register and perhaps charge an additional fee to UK customers to cover their additional costs.

2) put a customs label on the parcel and let the courier collect the UK VAT plus their own additional costs.

3) stop supplying to the UK

I have a nasty feeling that I may even end up paying VAT at both ends of the transaction!

Dick

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I have had a couple of deliveries from AliExpress under the new regime, VAT is charged on the order. They have turned up in the post after 7 days from order. A bit quicker than my experiences last year! This is using the cheap option for dispatch and no expectation of super fast delivery. They appear in the tracking to be drop shipped into the uk airfreight , and relabelled With a Royal Mail 48 label for delivery when they then appear in the RM tracking system usually the day prior to delivery

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Posted by MattyB on 22/01/2021 11:36:34:

Weirdly I don't remember any of this stuff being on the side of a bus during the referendum campaign..... angry 2

That is because it has nothing to do with the referendum!! it will be rolled out in the EU in June for all items coming from outside the EU.

EU internal trade will continue as before.

If we had voted to stay in the EU the truer costs on shady business practices from outside the EU would have been introduced in June 2021 in any case.

I understand that within the EU the changes were slated for 31st Dec 2020 but are delayed 6 months with Covid being sited as the reason.

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Posted by Martin Harris - Moderator on 22/01/2021 12:44:03:

I think most of us were unaware of the introduction of these measures to tighten up on VAT evasion. It does appear that things would have been tightened up across the EU whatever had happened after the referendum. At least we have a start on the rest of Europe!

Spot on. 1st July is the implementation for the rest of the EU.

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Posted by Martin Harris - Moderator on 22/01/2021 12:44:03:

I think most of us were unaware of the introduction of these measures to tighten up on VAT evasion. It does appear that things would have been tightened up across the EU whatever had happened after the referendum. At least we have a start on the rest of Europe!

You're saying that like it is a good thing.

the EU have (a) decided the midst of a global health crisis wasn't the time to do this and (b) allowed for small senders to continue to let local post services collect vat on the purchasers behalf.

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Posted by Nigel R on 22/01/2021 13:05:23:
Posted by Martin Harris - Moderator on 22/01/2021 12:44:03:

I think most of us were unaware of the introduction of these measures to tighten up on VAT evasion. It does appear that things would have been tightened up across the EU whatever had happened after the referendum. At least we have a start on the rest of Europe!

You're saying that like it is a good thing.

the EU have (a) decided the midst of a global health crisis wasn't the time to do this and (b) allowed for small senders to continue to let local post services collect vat on the purchasers behalf.

Only in as much as the VAT paid will now go to the UK instead of the (EU) country of origin. HMRC are almost literally a law unto themselves but let's hope some sensible solutions emerge.

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