From conversations and emails with various suppliers and acquaintances across Europe.
My go to online EU supplier for orders up to £135 will now add the UK’s prevailing VAT rate at the point of sale, as they have registered with HM Revenue & Customs.
Many of my EU-based one man band retailers have decided that the paperwork of collecting UK VAT is not worth the hassle and as a result will no longer supply UK customers, see below in BLUE.
Anyone in the UK receiving a gift from the EU worth more than £39 will now face a bill for import VAT at 20%.
Thankfully I do not use any EU retailers that have carried on as before, that have been sending out orders without having deducted the VAT. This has led to couriers turning up on doorsteps demanding the UK buyer pay the VAT owed on the item they are receiving. The rate will be between 0% and 20% depending on the item.
For orders above £135 it becomes more complicated as these will also attract import duty, which can range from 0% to 25% of the item’s value depending on what it is, what material it is made from and its declared value. There are thousands of different rates of duty and the system is difficult to understand.
VAT is then added to the total – at the prevailing UK rate, which for most items is 20%. The couriers also add their admin charge of between £8 (Royal Mail) and £11.50 (UPS), or 2.5% of the amount paid to clear customs, with a minimum charge of £11 (DHL).
For example, if I placed a £200.00 order from a German online retailer, it could attract 12% or £24.00 customs duty. VAT at 20% is then applied to the total of £224.00, giving a VAT bill of £44.80. Once the courier has added its £11.00 admin fee, I would be liable to pay £79.80 to the courier on the doorstep before they will hand over the package.
Orders paid for prior to 1st January should not attract these charges, DHL were sent away with a flea in their ear over this the other day, for trying to extort the £11.00 admin fee!
Yes I did get the package, and no I did not have pay the robber barons at HMRC, or the highway robbers from DHL!
Hopefully this will help clear up the guesswork!