Hi Helmut et al, These changes coming in at the end of the year are owing to the U.K. bringing in its own regulations as part of Brexit - this is not simply following EU regulations although it appears the EU plan to implement similar changes.
Posters are standard rated 20% for import vat to the U.K. Printed matter is zero rated but specifically excludes posters. Pre 1973 lithographic prints are rated at 5%. The difference for the consumer is that, up to now, many sellers would label shipments at under £15 value and they would slip through U.K. customs without a charge - this will no longer be possible (or advisable as it would mean the seller would be liable for supply VAT at the sub £135 level) so that’s why I was suggesting you may lose UK buyers if they are not willing to pay higher import vat eg a £150 value shipment labelled ‘posters’ would attract import vat of £30 plus any admin processing fees. Of course, many sellers are already labelling their shipments correctly so nothing will change for those sellers as long as your consignments are over £135. I think! Best, Caitlin On Thu, 12 Nov 2020 at 09:42, Helmut Hamm <[email protected]> wrote: > Hello John and Caitlin, > > extremely annoying indeed. However, imports to the EU over €22 are already > subject to import VAT, so for the consumer, nothing much will change here. > > The main difference is that the seller can now pre-pay Import VAT. > What ebay already does with sales tax in the US shall now be applied to > everyone selling goods to the EU. Instead of paying the post office or the > courier service, the buyer will then pay the Import VAT to the seller, at > the time the order is placed. > > According to the link Caitlin posted, there is an opt-out option for > sellers, though: > > ‚(2) they could elect to have the import VAT collected from the final > customer by the Customs declarant (postal couriers);‘ > > So for those who decide to opt out, it seems that nothing will change. > > Also, these new regulations only apply to orders up to €150. Any goods > exceeding that value are subject to additional, individual customs duties. > As it is now, those fees will be collected from the customer. For posters, > they are currently 0%, but for other goods (like textiles) they can be > substantial and go up to almost 40% (on top of the Import VAT). > > Of course, for the UK this is not the end of the story: Britain will leave > the EU at the end of the year. There may be a grace period during which > they might continue to apply EU regulations, but eventually, the UK will > need to come up with its own set of contracts and regulations. > > Hope this helps a little bit. > > Helmut > > *Gesendet:* Donnerstag, 12. November 2020 um 08:05 Uhr > *Von:* "Caitlin Graham" <[email protected]> > *An:* [email protected] > *Betreff:* Re: [MOPO] Changes to UK customs regulations > 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 <+44%20(0)7793%20971%20425> > www.rockpaperfilm.com > > [o] @rockpaperfilm > <˙) @rockpaperfilmuk > www.facebook.com/rockpaperfilm > www.pinterest.com/rockpaperfilm > > ------------------------------ > > To unsubscribe from the MoPo-L list, click the following link: > https://listserv.american.edu/scripts/wa-american.exe?SUBED1=MoPo-L&A=1 > > ------------------------------ > > 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.
