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Author Topic: UK out of the EU...... Extra VAT Tax on BKP?  (Read 3257 times)

darrenw5094

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UK out of the EU...... Extra VAT Tax on BKP?
« on: January 13, 2021, 06:54:45 PM »
I live in Ireland and the UK has finally departed the EU.
Looks like from now on any BKP purchases will be taxed by my government by another 21%,which would make the bill to nearer 400 for a pair of humbuckers.
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AndyR

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Re: UK out of the EU...... Extra VAT Tax on BKP?
« Reply #1 on: January 14, 2021, 05:30:45 PM »
My understanding is that you shouldn't pay two lots of VAT?

If I'm a UK dude I should be paying UK VAT on anything I buy, regardless of whether I'm buying it from a UK or EU outlet.

If I'm an EU dude I should be paying EU VAT on anything I buy, regardless of whether I'm buying it from a UK or EU outlet.

So, if you buy direct from BKP, the BKP price to you should drop by 20% and, if you purchase, you owe your government VAT at their prevailing rate.

(As an aside, a little while ago, a year or so, I thought the BKP prices looked very low on the website one day. I found out that was because the website incorrectly thought I was outside the EU/UK (this was before we were out), and so it was quoting me ex-vat prices. I refreshed the website and the prices went back up to usual ones I see, including UK VAT.)

How it all works I don't know exactly, but I have looked at it a little bit from a UK customer perspective buying direct from an EU outlet...

I was looking at an amp on Thomann earlier. They have big warnings up that, as a customer in the UK, they are now displaying prices to me excluding VAT for big ticket items. If I purchase, they will take the excl VAT price from me. On a big ticket item, the UK VAT will now be collected from me by the shipper (UPS I think it said) at the UK rate of 20% and the shipper will pay it to UK HMRC (and deal with the paperwork) as they bring it into the UK. Thomann are also warning that the shipper may charge a fee for the VAT paperwork, they don't know how much but guess 5 or so, and their shipping fee, obviously. I've never bought from Thomann, but I assume the price quoted a few weeks back would have included EU VAT and at the checkout they would have collected the shipping fee upfront and paid the shipper themselves.

For items below a threshold (I think it's 135?), Thomann is registered for UK VAT, and they charge the UK customer themselves and pay it to the UK's HMRC.

I understand these procedures were all part of the deal hammered out to ease moving stuff across borders and enable tariff free trade.

I believe something similar should happen in the other direction (UK > EU)?

I can't find anything about it on the main BKP website (but I'm in the UK) - it might be worth contacting them to find out?
« Last Edit: January 14, 2021, 05:34:47 PM by AndyR »
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darkbluemurder

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Re: UK out of the EU...... Extra VAT Tax on BKP?
« Reply #2 on: January 18, 2021, 10:40:07 AM »
Andy got it right.

As any sale of a BKP to a country different from the UK should be an export, no UK VAT should apply. On the other hand, goods coming from the UK will be stopped at the border until they are cleared for free circulation within the EU. This means that in principle customs duties (unless there is a preferential treatment) and import VAT (at the same rate as the local VAT of that country) will have to be paid. So essentially you exchange the UK VAT with your local VAT.

Cheers Stephan