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VAT changes post Brexit

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Trevor Crossman 128/10/2020 10:28:16
150 forum posts
17 photos

While idly looking at my browser news pages I saw the link below and don't know if this has been mentioned in any previous thread, but it looks like many of the items that we buy for our swarf generating hobby are set up for an increase in price and probably choice in 2021!

https://yorkshirebylines.co.uk/brexit-to-boldly-go-where-no-vat-inspector-has-gone-before/

Trevor

Ady128/10/2020 11:10:57
avatar
3955 forum posts
522 photos

Nothing new really

They use VAT to throttle small businesses

If a UK person sells 1 dollar of digital goods to an overseas person they have to register for VAT etc etc

So thousands of talented UK programmers can only do limited stuff through big corporate third parties like app stores

An entire generation of talented programmers with the global market an internet click away... reduced to zero because of some government tw..ts

Edited By Ady1 on 28/10/2020 11:24:49

Trevor Crossman 128/10/2020 11:44:50
150 forum posts
17 photos

Yes, but surely the new bit is that after Jan1 2021 the foreign seller will be required to be a tax collector for HMRC, so many suppliers especially the small ones will not do so, especially as they'll have to pay for the "privilege"! This will affect our access to many specialist items which certainly aren't made in UK.

Stuart Smith 528/10/2020 13:07:41
139 forum posts
25 photos

This will only affect items bought direct from a foreign seller. If you buy through an ‘online market place’ such as eBay, they will be responsible.

If you buy from a uk supplier, they will be responsible for vat as now.

It will also remove the cost and problems with courier ‘handling charges’ for direct imports. See recent thread **LINK**

Surely this can only be good for uk businesses when trying to compete with cheap imports.

Clive Foster28/10/2020 13:24:51
2466 forum posts
81 photos

Seems an ill thought out and cumbersome method to me.

Given that all low value transactions by individual purchasers will be done by electronic means, whether credit card or transfer, why not just apply the VAT automatically to the purchase. Its effectively exactly the same as the way an online market place will handle things.

Can't see any problem for credit / debit cards as the mechanism for levying such charges already exists in the card administration software. Direct bank transfer might need an extra hoop or two to jump through. Probably not a bad idea to have extra hoops when transferring money directly overseas given the extra opportunities for fraud.

That said I wonder how many folk buy direct from foreign suppliers anyway. Online marketplaces are much easier for all concerned.

Um, does AliBaba count as an online market place?

Clve

Vic28/10/2020 15:01:41
2645 forum posts
20 photos

No more cheap stuff direct from China it seems unless they come in as free samples. laugh

Bazyle28/10/2020 21:27:13
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5569 forum posts
207 photos

So if you buy your star trek communicator from Will S how do they know you paid the VAT? Do they impound it at Heathrow until proof is presented? Or do they plan to take Will to court in the USA to recover the loot? When did it start costing so much to register fro VAT or is that just foreigners? When I registered a company for VAT back in about 1980 I don't recall paying anything.

DMB28/10/2020 22:34:38
1031 forum posts

Which cabinet minister said there would be any changes? Chancellors job; anyone else is speaking out of turn.

All seems like idle speculation probably by anti brexiteers. Come the big day we will all know for sure if there any changes. I'm happy to wait patiently for the truth.

I dont think there will be any big price rises for any reason as it would go against the promises made and I think they are well aware that their future jobs are riding on it at the next election. 

Edited By DMB on 28/10/2020 22:37:57

Clive Foster28/10/2020 22:46:30
2466 forum posts
81 photos

What DMB said.

Somebody taking half a speculative idea on how to sort VAT, and possibly customs, charges post Brexit and running with it.

Most likely there have been musings about letting overseas companies register for VAT, as British ones are, to actually streamline trade. I'd be unsurprised if there weren't musings about including customs charges too so overseas companies can offer WSIWG pricing with no hidden charges.

I still think that, if it happens at all, it will be done via credit or debit card administration. When you have afully electronic payment chain such things are relatively easy to arrange.

Especially if some genius in the Treasury, Customs & Excise et al has a rush of blood to the head and decides to simplify the heck out of the charges. Well I can dream can't I.

Clive

DMB28/10/2020 22:52:32
1031 forum posts

Dont simplify it, make it complicated and keep pen - pushing civil servants in a job and getting their daily exercise walking around the offices with a sheet of paper!

Stuart Smith 529/10/2020 00:44:55
139 forum posts
25 photos

The new rules are on the gov.uk website:

**LINK**

So not speculation.

I can’t see any mention of a fee to register though.

Clive Foster29/10/2020 01:22:16
2466 forum posts
81 photos

Well found Stuart.

Sounds like the higher ups are taking level playing field, except for customs duties, seriously. Never been a charge for VAT registration so I shall expect that to continue.

On reflection something like this was to be expected to keep trading with Europe essentially same as it was.

Much as VAT used to annoy me back when I was registered I have to admit that with an electronic acconting system its no great issue to deal with.

I'm a little surprised that the press was pretty accurate.

Clive

SillyOldDuffer29/10/2020 08:44:50
Moderator
6461 forum posts
1422 photos
Posted by DMB on 28/10/2020 22:34:38:

All seems like idle speculation probably by anti brexiteers. Come the big day we will all know for sure if there any changes. I'm happy to wait patiently for the truth.

I dont think there will be any big price rises for any reason as it would go against the promises made and I think they are well aware that their future jobs are riding on it at the next election.

...

Not long now, only 64 days. smiley

At least we know who to blame If it turns out to be a shameful muddle. Brexit supporters have been responsible for delivery since winning the referendum 3 years ago. Big difference between wishful thinking and getting results in the real world.

Are politicians good at keeping promises? You tell me...

Dave

old mart29/10/2020 20:24:58
2219 forum posts
164 photos

Amazon seem to have found a way around every type of tax.

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