Hi John, I agree this is all extremely annoying, but a couple of things to note from reading the complex guidance on this...
As far as I understand it, this new rule only applies to consignments with a total value under £135, so if you are shipping consignments to the U.K. with a value OVER £135 - existing U.K. import rules apply and you can opt for import vat to be charged to the importer (your customer) and I don’t think you would need to register for U.K. vat. VAT on consignments UNDER £135 is now classed as ‘Supply VAT’ rather than import VAT and the supplier will now be responsible for accounting for that at the point of sale and would need to register for U.K. vat. So, I am no expert, but it seems a way around having to register for U.K. vat is not to sell anything under £135 to U.K. customers unless they buy more than one item so that the total consignment values over £135? The downside is you may lose U.K. customers who don’t want to pay the U.K. import Vat. The other point to note is that if you are selling to a U.K. customer through an online marketplace, the online marketplace is responsible for collecting the vat, not you. So again that would be another potential way around it - directing U.K. customers to purchase through an online marketplace rather than direct on your website. See full details here https://www.gov.uk/government/publications/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021 “Direct sellers - businesses making sales direct to GB customers rather than via an OMP: Businesses making sales of goods not exceeding £135 in value (per consignment) to customers in the UK, where the goods are outside the UK at the point of sale, will become liable to register and account for VAT on those sales.” I also understand that these U.K. changes are based on similar changes expected to come into place throughout the European Union in July 2021, where a consignment value under 150 EUR will apply: https://www.globalvatcompliance.com/eu-new-vat-rules-applying-to-b2c-e-commerce-trades-in-the-european-union-as-of-1-july-2021/?cn-reloaded=1 So it seems this will become an issue when selling to all European customers, not just to U.K. I’m hoping someone will write an informed article on how this will affect the collectors market so it all becomes clear! Best, Caitlin On Wed, 11 Nov 2020 at 22:30, John Reid <[email protected]> wrote: > Hi to you all > > I just received a notification from Australia Post that would seem to mean > postage to the UK might become untenable for many sellers including Poster > dealers. Just curious as to whether other dealers are aware of it and how > some of the UK members feel about it. Here is the text I received. > > > > “From 1 January 2021, the value-added tax (VAT) applicable to commercial > items valued at £15 – £135 entering the UK will now be expanded to £0 – > £135 (inclusive), meaning the £15 lower limit is abolished. The VAT on > these items will also now have to be pre-paid. > > If you sell goods to customers in the UK, from January 2021 you'll need to > pre-pay VAT to avoid additional costs. To do this, you'll need to ensure > you have: > > - a GB Economic Operator Registration and Identification (EORI) number > before shipping your goods > - the HS Tariff Code required to make a customs declaration and > calculate duties on an import > - the customs value of goods – needed to make a customs declaration > and calculate duties on import. > > We recommend you prepare for the application of the VAT scheme to your > business by considering the changes and where appropriate applying for an > EORI number > <https://click.email.auspost.com.au/?qs=ab774d4afc9a31e0f86e3fec839e6f3cb679fd3589d917c87010d83a66e4c5ec393fd9e87eab17d7e24180f057076c3b32900e5972ce9253> > in advance. It can take up to a week to get one, so register early.” > > > > Regards > > > > John > > > > John Reid > > *Moviemem Original Movie Posters* > > www.moviemem.com > > Like Us on Facebook > <https://www.facebook.com/moviememmovieposters/?hc_ref=SEARCH&fref=nf> > > PO Box 92 > > Elanora > > Qld 4221 > > Australia > > Phone: 0414 720 369 > > > ------------------------------ > > To unsubscribe from the MoPo-L list, click the following link: > https://listserv.american.edu/scripts/wa-american.exe?SUBED1=MoPo-L&A=1 > -- Caitlin Graham Rock Paper Film +44 (0)7793 971 425 www.rockpaperfilm.com [o] @rockpaperfilm <˙) @rockpaperfilmuk www.facebook.com/rockpaperfilm www.pinterest.com/rockpaperfilm Visit the MoPo Mailing List Web Site at www.filmfan.com ___________________________________________________________________ How to UNSUBSCRIBE from the MoPo Mailing List Send a message addressed to: [email protected] In the BODY of your message type: SIGNOFF MOPO-L The author of this message is solely responsible for its content.
