Hi I hope someone can help.
Firstly I understand that we don’t charge vat to Jersey and Channel Islands it’s zero rated.
My question is - we are a vat registered business selling clothing online. Let’s say we sell sweatshirt to a customer in the Uk the invoice shows the cost of the item/ shipping and Vat.
For the Jersey and CIsland customers it simply shows the postage and the total purchase price with vat show as zero but the price is the same as a uk customer.
Do I need to sell the item less 20% surely not but it’s not clear on the HMrC website.
My U.K. agent just quoted $6200 for a 20ft but my factory today have quoted $4575 (just for the voyage).
Click to expand.I hate myself for this, but $6200 is decent in current climate. Is that FOB > Door?
Any chatter about prices coming down yet?
I know the initial thought was after CNY but most seem to have gone quiet on that now.
Click to expand.It seems this hasn t materialised like we all hoped. The ship owners are still price gouging. I think it s going to continue until lobby from either governments or trading bodies start to stamp their feet.
17 1 Thanks, MrChad, great read. In the meantime we spoke with an EU VAT registration company, they said it s best to get VAT registered in an EU country (not all are the same with regards to VAT benefits and requirements) and that would avoid having to pay Polish VAT when our supplier invoices us. The only country we definitely shouldn t get VAT registered in is Poland as then we ll pay Polish VAT for sure and would have to claim it back. This also allows us to charge no VAT when we invoice our EU clients (reverse charge).
Still annoying that now we have to pay a VAT registration fee plus ongoing fees for the VAT returns in the EU country. Brexit hasn t brought us a single benefit. Only additional costs and paperwork - plus more costs and paperwork when we import goods from the EU into the UK!
this time we had an extra customs related item on the bill for 130 euros
Click to expand.Out of interest, was there a breakdown for this? Was it just the UK VAT on a tariff free import or was this quite a high tariff duty on a non-EU/UK item(s) alone and you ve deferred the VAT? There s a trend by the media at the moment to quote reported figures but never get to the detail of why they re charged so you never know if they re valid or just incorrect.
Was it in your case that you were expecting a tariff free ride but the carrier was word blind when it came to the preference origin/statement? We ve had more that a few run-ins with DHL & Fedex on the past EU Canadian tariff free deal where orders were charged duty as they ve just ignored the preference statement or quibbled over an inadequate description that was limited due to their online form! BTW the UK has a pending Canadian free deal again that is active now even though it s not been signed off or in the HMRC deal list.
I guess the online marketplaces have had to implement this as best they want to (though the likes of ebay and aliexpress, which are huge global online marketplaces, surely should have registered for UK VAT and put things in place ready for 1st Jan).
If you are buying as a UK VAT registered business then it looks like marketplaces are not giving you the option of postponed VAT accounting (or deferred, etc). The marketplace will just charge the VAT if the seller claims they are not collecting it (i.e. not UK VAT registered) for sales under £135. As you say, the VAT amount charged then surely has to be produced to you written on some form of VAT invoice with the UK VAT number of the entity that charged the VAT (the marketplace or the seller), so that you can support a claim for the VAT paid on your VAT return.