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Re: Scary thought.

Posted: Fri May 24, 2019 6:23 pm
by tomhugill
Eastern Front wrote:
Son of a gun-ner wrote:Mr Front, I know import duties are from my own government.

In Europe we have this extra tax, VAT, Value Added Tax, that's 20% and is added to the price of MOST things. Therefore, any products entering the UK and Europe are subject to it.
When you're part of the EU (it works as a union like the USA), this tax is already applied to goods all over Europe. When I purchase a tank from Germany, it's already including the VAT applied in Germany, therefore I don't have to pay it again.

So, when Britain leaves the EU, our government still charges the VAT on goods and imports. But also the EU will have their VAT on their goods within their member countries.
What I want to know is, will we now start paying British VAT on that same tank from Germany which has already got EU VAT applied.
Mick,
I am to familiar as I lived in Germany. The tax your paying is EU assigned, I think when you leave the union that tax will no longer exist. I agree though, what will the UK assign as an import duty, I am thinking it will be less, after all, that is another reason I believe the people want to "Brexit", their lives have been dictated to by people they did not elect! a bunch of stuffed shirts in Brussels! Am I right?
Pretty sure we've had vat since before we joined the eu.

Mick, if we stay in the customs union we won't pay vat or duty same as now, if we leave I would guess same rules that currently apply to none eu imports apply.

But we don't currently know. Vat should be a zero sum game assuming the seller deducts it. However I think some smaller euro makers don't charge vat as they're too small, so we would loose out there.

Re: Scary thought.

Posted: Fri May 24, 2019 6:31 pm
by Rad_Schuhart
What I can tell you, guys, is in my job we send parcels worldwide. Inside Europe there is no problem at all, you write the address and done.

In the rest of the world, and I send parcels to china, australia, arab countries, russia... Well, basically everywhere, and we have to deal with customs, which is a real pain. If the UK leaves the european union they wont pay more VAT, for sure... But immediatelly they will have the same or even more taxes but just with another name like almost the rest of the world. I really love the UK and you all know it, but when I lived in England, I had to call it Taxland, lol.

I just reminded a customer I have, from Russia. When he orders something it is cheaper for him to fly to germany, pick for the items, pay one night in an hotel and go back to russia than just sending the parcel to russia and paying their customs.

Also I reminded my home country, Spain. In the canary Islands they dont have VAT, but they have just another tax with another name which I dont remember right now. One way or another, you will end paying, unless you play the chinesse way an declare everything as a gift with the price of one euro free shipping...

Re: Scary thought.

Posted: Fri May 24, 2019 6:32 pm
by jarndice
"So, when Britain leaves the EU, our government still charges the VAT on goods and imports. But also the EU will have their VAT on their goods within their member countries.
What I want to know is, will we now start paying British VAT on that same tank from Germany which has already got EU VAT applied."[/quote]


When :haha: :haha: the UK leaves the EU the British Government will be free to abolish Value Added Tax completely,
Although I don't think historically British Chancellors have much of a record in removing taxes so I shall not be holding my breath,
We would if we left the EU have an opportunity to completely overhaul our taxation system and use it in conjunction with the City of London to promote the UK as the goto centre for all matters financial.
This could mean that imports that were not in direct competition with UK products would be allowed in without restriction.
So just maybe there is a glimmer of hope for Heng Long et al continuing to sell relatively cheaply within our borders.

Re: Scary thought.

Posted: Fri May 24, 2019 6:42 pm
by jarndice
Tom VAT was first introduced in the UK in 1973, the same year that Edward Heath signed the UK into full membership of the European Common Market.

Re: Scary thought.

Posted: Fri May 24, 2019 8:39 pm
by Mic
At the moment, it's all speculation though as not even the government know exactly what is going on in the UK, especially after today's leave announcement! Let's all just keep our fingers crossed and hope that it doesn't... ParcelFarce and their £8 handling fee.. Grrr!

Re: Scary thought.

Posted: Fri May 24, 2019 11:14 pm
by silversurfer1947
Sorry if this has already been stated. When or if we leave the EU, VAT will be payable on all imports to the UK. However, we should be entitled to VAT free prices from the supplier. I believe Germany has a 19% VAT rate. So any UK import would, in theory, only go up by 1%. There is the possibility that EU suppliers will not be interested in this way of doing business and so will only sell at a VAT inclusive price. It is distinctly possible you will end up paying UK VAT on top of German VAT. Of course, you will also h Ave the addition of the handling charge. Best advice, buy as much as possible before 31 October.

Re: Scary thought.

Posted: Sat May 25, 2019 8:52 am
by HERMAN BIX
If any of you are feeling a bit hard done by, try a crap exchange rate AND the relevant postal costs to a far off destination :-<
I see it like this

If you need it, that need has a cost
The cost does not affect the need,
If you don’t need it, there is no cost.

You need it made and supplied by someone else, it has a cost
Or, make it yourself, the need is negated, so is the cost,

GBP and USD ........... I and others use the rough equivalent of beads & blankets.
Cry me a river :/

Re: Scary thought.

Posted: Sat May 25, 2019 12:05 pm
by Son of a gun-ner
silversurfer1947 wrote:Sorry if this has already been stated. When or if we leave the EU, VAT will be payable on all imports to the UK. However, we should be entitled to VAT free prices from the supplier. I believe Germany has a 19% VAT rate. So any UK import would, in theory, only go up by 1%. There is the possibility that EU suppliers will not be interested in this way of doing business and so will only sell at a VAT inclusive price. It is distinctly possible you will end up paying UK VAT on top of German VAT. Of course, you will also h Ave the addition of the handling charge. Best advice, buy as much as possible before 31 October.
Well, I've done a little digging, and from what I understand, what Mr Silversurfer said is close to what can happen if we keep VAT. But like those who now live outside the EU that can claim the VAT back, we should be able to claim the "German" (keeping to the same example) VAT back from Germany when we live outside the European Union.
At the moment, technically, Mr X who lives in the USA can claim the VAT back if he got charged it when making a purchase within the EU, whether by post or in person during a stay.

@ Tom, yes, VAT was all part of the EU plan to control imports to Europe. We never had it before we joined.

@ jarndice. Yeah, unfortunately I'm inclined to agree with you, I can't see any UK government removing vat from our lives.

@ Rad. Yes, it's the same here with shipping within Europe and outside. But "soon" we won't be European anymore ;)

@ Mr Front. The EU governing body is made up from elected and non elected representatives, a bit like how democracy works in England. The elected MP's are at the mercy/whim of the unelected House of Lords when important legislation needs to be put through.

@ Mr lmcq11. Yes, that's how it should be done, having the VAT removed from the total, so hopefully that'll happen here.

@ Mic. That £8 is the cheapest handling charge. I've paid double that when using a courier service.

@ Herman. Gosh, some people don't half whinge. . . . ;)
Mind you. If what Nick Aguilera informed me of about the US postal charges rising, it'll isolate you even more.

Anyway, don't forget, VAT isn't just a European import duty, we (us in the EU) have to pay it on most things, even European made items, and that's on top of any sales/extortion tax already on many items.

Re: Scary thought.

Posted: Sat May 25, 2019 3:29 pm
by 43rdRecceReg
We had 'Purchase Tax' before VAT, Mick. So, it's nothing new. In fact, VAT replaced it..so it's merely Purchase Tax by another name (one that sounds a bit like a brand of Whiskey).
At one time (during the War, I believe), P.T. went as high as 33% 8O

Re: Scary thought.

Posted: Sat May 25, 2019 3:40 pm
by Son of a gun-ner
43rdRecceReg wrote:We had 'Purchase Tax' before VAT, Mick. So, it's nothing new. In fact, VAT replaced it..so it's merely Purchase Tax by another name (one that sounds a bit like a brand of Whiskey).
At one time (during the War, I believe), P.T. went as high as 33% 8O
Well, in that case, what's the extra tax that's put on cigarettes, petrol, cars and most booze before VAT called?