I live in the republic of Ireland and up to now have bought most of my fasteners and propriety parts from the UK, but after January things from the UK are going to get more expensive because of Brexit. Does anyone know of a good fastener supplier in the EU who sells small quantities of imperial and metric fasteners?
After Brexit
- Thread starter Brian Coombs
- Start date
Have the same issue here in Holland.
At the moment lots of UK supliers have issues getting all orders shipped before Brexit by the uge amount of orders placed by the Europeans. Just receievd a message from Rally Design about that. Rally Design warned they may not be able to ship it in time.
I forsaw it coming and started ordering parts from the UK three months ago to be sure I have enough stock of everything needed to get my build going on and my other toys rolling.
For Holland, parts from the UK after the Brexit will be 25% more expensive by added duty. So I propably have to slow down on my evening Scotch too.
At the moment lots of UK supliers have issues getting all orders shipped before Brexit by the uge amount of orders placed by the Europeans. Just receievd a message from Rally Design about that. Rally Design warned they may not be able to ship it in time.
I forsaw it coming and started ordering parts from the UK three months ago to be sure I have enough stock of everything needed to get my build going on and my other toys rolling.
For Holland, parts from the UK after the Brexit will be 25% more expensive by added duty. So I propably have to slow down on my evening Scotch too.
Yes it will be the same here, With some parts we will have no option but just pay the extra.
Ian Anderson
Lifetime Supporter
Ok
so at the moment you purchase from the U.K. and they have to add VAT to the invoice total, which is 20% This is a requirement when they sell into the U.K. or the EU.
When the U.K. sells to any other non EU country, we do not charge the VAT, so immediately 20% cheaper on the invoice total.There is a requirement to be able to prove the export by means of a consignment note, postal slip etc.
The way I see it for anything shipped after 01/01/2021 there should be no U.K. VAT charged on the invoice and it is up to your country to charge import duties and taxes.
I am fairly certain all countries have a no charge policy on imports less than value XXX what value this is you will have to find from your local authorities
so at the moment you purchase from the U.K. and they have to add VAT to the invoice total, which is 20% This is a requirement when they sell into the U.K. or the EU.
When the U.K. sells to any other non EU country, we do not charge the VAT, so immediately 20% cheaper on the invoice total.There is a requirement to be able to prove the export by means of a consignment note, postal slip etc.
The way I see it for anything shipped after 01/01/2021 there should be no U.K. VAT charged on the invoice and it is up to your country to charge import duties and taxes.
I am fairly certain all countries have a no charge policy on imports less than value XXX what value this is you will have to find from your local authorities
Ian you are wrong, its like buying in the USA living in Europe, you pay your goods in the USA including their VAT (Summit, Jegs, Rockauto does). Ad shipping.
When it comes in Holland, Ill pay 4% duty over the total amount including shipping (carparts) and have to ad 21% Dutch VAT.
After Brexit goods from the UK will be the same. Duty amount will depents on goods, carparts, alcohol etcetera.
When it comes in Holland, Ill pay 4% duty over the total amount including shipping (carparts) and have to ad 21% Dutch VAT.
After Brexit goods from the UK will be the same. Duty amount will depents on goods, carparts, alcohol etcetera.
I think it will work the other way too, so people in the UK buying from the EU will end up costing them about 25% extra.
Yes it will, thats why UK company's import so many goods the last months resulting in long traffic delays at the harbours. Calais last week had 24hrs delays for trucks traveling to the UK.
Poland & Chech & Bulgaria are stepping in the classic car parts world knowing continend people will look for alternatives.
Brexit will hit us hard.
I even need a visa after Brexit to travel from Holland to the UK to vissit carshows & events in the UK.
Ian Anderson
Lifetime Supporter
Correct you pat the Dutch VAT, the U.K. seller will not charge UK Vat.
The rules are shown in the attachments below.
For 14 years I worked in import exports companies both buying and selling into the EU and also the Rest of the World. I am an accountant and my job was keeping the books and VAT records, Through numerous audits by the TAx inspectors the rules as I stated are applied.
ian
Attachments
To my understanding
You buy a part in UK to be shipped to EU (Sweden/SEK in may case).
Part cost: £1000
Shipping cost £100
Before BREXIT
£1000 + £100 = £1100
+ 20% UK VAT (£220) = £1320 with Google exchange currency 14 769 SEK
After BREXIT
£1000 + £100 = £1100 with Google exchange currency 12 308 SEK
+4% customs (492 SEK) = 12 740 SEK
+ 25% SE VAT (3 185 SEK) = 15 925 SEK
How much more expensive?
(15925 - 14769) / 14769 = 0.078 = 7.8 % more expensive
You buy a part in UK to be shipped to EU (Sweden/SEK in may case).
Part cost: £1000
Shipping cost £100
Before BREXIT
£1000 + £100 = £1100
+ 20% UK VAT (£220) = £1320 with Google exchange currency 14 769 SEK
After BREXIT
£1000 + £100 = £1100 with Google exchange currency 12 308 SEK
+4% customs (492 SEK) = 12 740 SEK
+ 25% SE VAT (3 185 SEK) = 15 925 SEK
How much more expensive?
(15925 - 14769) / 14769 = 0.078 = 7.8 % more expensive
I am not sure about Ian's math, its based on trade agreements that may not be valid after Brexit.
If you buy in the States (as a European) at Summit, Jegs or Rockauto or whatever, you pay the price including US VAT.
When it arrives in Holland its US price including US VAT + shipping + 4% import duty + 21% Dutch VAT. (4% duty = carparts)
According to the Dutch Government, trading with the Uk will be the same after Brexit for private purchases.
When I had my own company I could buy tax free whitin the European Union, cause I had a EU Traders Tax number.
With that Traders Tax number I could not buy tax free outside the European Union, for that special rules do aply.
We'll see what happens in 2021.
If you buy in the States (as a European) at Summit, Jegs or Rockauto or whatever, you pay the price including US VAT.
When it arrives in Holland its US price including US VAT + shipping + 4% import duty + 21% Dutch VAT. (4% duty = carparts)
According to the Dutch Government, trading with the Uk will be the same after Brexit for private purchases.
When I had my own company I could buy tax free whitin the European Union, cause I had a EU Traders Tax number.
With that Traders Tax number I could not buy tax free outside the European Union, for that special rules do aply.
We'll see what happens in 2021.
I disagree to that statement - I purchased a crate engine from Blue Print Engines with free domestic shipping so I got a Swedish company which operates in US. Blue Print charged the engine without US VAT (with some guarantee that it will leave US). When it arrived in Sweden I paid customs, taxes as normal.
Also the same when ordering from Summit Racing
This was the basis I have been quoted on for engine builds. No US tax is charged if it’s being sent abroad.
I really hope this is the case, but I read somewhere the UK were still going to charge the VAT, even though the part was being exported, and then the EU was also going to charge VAT,
Ian Anderson
Lifetime Supporter
Export goods from the UK: step by step - GOV.UK
How to move goods from the UK to international destinations, including any special rules you’ll need to follow to move your goods from the UK.
see number 4
ian
That would be a real disaster for UK exports
but I cannot believe it is being true.I guess we will find out in a few weeks....That would be a real disaster for UK exports
Julian
Lifetime Supporter
As a Brit who migrated to the states I buy parts for my Ultima and Triumph motorcycle and do not pay UK VAT, nor yet have I been charged duties for importing to the US. One would expect (hope) that similar rules would apply post Brexit. The US is clamping down on sales tax though as so many states lost revenue due to internet shopping, so domestically you do now pay state sales tax no matter where it shipped from, it used to be only if the seller had a physical presence in the state of delivery. You should not pay state tax on items purchased for export to another country.
Ian,Export goods from the UK: step by step - GOV.UK
How to move goods from the UK to international destinations, including any special rules you’ll need to follow to move your goods from the UK.www.gov.uk
see number 4
ian
Number 4
"From 1 January 2021, you can charge customers VAT at 0% (known as 'zero rate') on most goods you export to the EU."
Number 4 does not appear to be as good as it sounds. The document the, "check if you can zero rate" link takes you to, is slightly confusing as it states this both in the initial March 2014 document, and the updated From 1 January 2021 information at the bottom. The way this disaster is heading possible confusion does not surprise me at all.
3.3 Conditions for zero rating direct exports
You must not zero rate a direct export where you:
- deliver or post the goods to a customer’s address in the UK or EU
- allow the goods to be collected by or on behalf of your customer even if it is claimed they are for subsequent export (see paragraphs 3.6 and 7.4 for details of deliveries made to another UK trader for groupage, consolidation, processing or incorporation prior to export)
Ian Anderson
Lifetime Supporter
Ok so to zero rate for VAT the cokpany Making the sale must be able to,prove it is leaving the U.K. (before Brexit you had to prove it was leaving the Uk and EU)
if you come to the U.K. and pick up items you have to pay VAT as the seller cannot prove it is leaving the U.K.
But when you are leaving the country you can take your invoice to the counter in the departure lounge and say you are travelling out the country with these items and the customs official will give you a form to complete and you can reclaim the VAT. ...... yes it is a process and a pain to do but it does work, probably not worth the effort for a £20 item but if you are picking up a lot then yes worthwhile.
if the selller gets audited and cannot prove the export they have to pay over the VAT and also a penalty/fine, hence most sellers will charge VAT, however if they are used to exporting and the process and proving export then no VAT will be charged.
ian
if you come to the U.K. and pick up items you have to pay VAT as the seller cannot prove it is leaving the U.K.
But when you are leaving the country you can take your invoice to the counter in the departure lounge and say you are travelling out the country with these items and the customs official will give you a form to complete and you can reclaim the VAT. ...... yes it is a process and a pain to do but it does work, probably not worth the effort for a £20 item but if you are picking up a lot then yes worthwhile.
if the selller gets audited and cannot prove the export they have to pay over the VAT and also a penalty/fine, hence most sellers will charge VAT, however if they are used to exporting and the process and proving export then no VAT will be charged.
ian
It looks like the UK are getting rid of the VAT reclaim for people visiting.
Ending VAT-free shopping 'will hit UK tourism and retail'
Plan to end VAT-free shopping for international visitors could cost 70,000 jobs, say retail and travel firms.
www.bbc.com
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