Hi Helmut and Caitlin According to Australia Post, there is no opt out. The seller has to collect the VAT on items under 135 pounds. Here is what they have told me ……
What's changing? From 1 January 2021, the collection of duties and taxes for the import of commercial goods into the UK will change with immediate effect. 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. To pre-pay VAT and avoid additional costs, from January 2021 sellers will need to ensure they have: · a GB Economic Operator Registration and Identification (EORI) number before shipping their 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. Please note there is no change to the current process for commercial goods >£135 and VAT or duty applicable to these items will continue to be charged to the recipient. Regards John From: MoPo List [mailto:mopo-l@LISTSERV.AMERICAN.EDU] On Behalf Of Helmut Hamm Sent: 12 November, 2020 7:42 PM To: MoPo-L@LISTSERV.AMERICAN.EDU Subject: [MOPO] Aw: Re: [MOPO] Changes to UK customs regulations 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" <cait...@rockpaperfilm.com<mailto:cait...@rockpaperfilm.com>> An: MoPo-L@LISTSERV.AMERICAN.EDU<mailto:MoPo-L@LISTSERV.AMERICAN.EDU> 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 <johnr...@moviemem.com<mailto:johnr...@moviemem.com>> 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<http://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<tel:0414%20720%20369> ________________________________ 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<tel:+44%20(0)7793%20971%20425> www.rockpaperfilm.com<http://www.rockpaperfilm.com> [o] @rockpaperfilm <˙) @rockpaperfilmuk www.facebook.com/rockpaperfilm<http://www.facebook.com/rockpaperfilm> www.pinterest.com/rockpaperfilm<http://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 Visit the MoPo Mailing List Web Site at www.filmfan.com ___________________________________________________________________ How to UNSUBSCRIBE from the MoPo Mailing List Send a message addressed to: lists...@listserv.american.edu In the BODY of your message type: SIGNOFF MOPO-L The author of this message is solely responsible for its content.
