VAT on items bought on Ebay from Europe

[Waka]

Had a nasty surprise when completing a transaction on eBay today. Sales tax on the item and carriage is now being charged when buying from a European state. Given many of our items are Lancia sourced in Italy this will add 20% to the costs - maybe Boris can sub us from £350 million a week we are saving by leaving the EU !

[peteracs]

This is pretty standard stuff when we were in the EU and buying from outside the EU.

I read in one of the Government docs that shipments of less than £135 will not have VAT charged when coming into the U.K. from EU, but have not had that confirmed elsewhere.

Peter

[Waka]

Yes Peter - it is generally known that importing from U.S. South Africa etc. is liable to VAT + Custom charges, my point is that this is a purchase from a private individual and is under the amount £135 (until shipping is added) there is no warning on the Ebay site (unless you click through to their rather vague explanation hidden away) so at the point of purchase you are presented with one price and then with VAT added once you've clicked through. I just thought that members might be wary of getting spares etc. without knowing you'll pay more  now than in December.

It is worth saying that any European sellers goods that have listed on Ebay.co.uk have the uplift added into the price.

[williamcorke]

I've had the sales tax added on a couple of bits bought in Italy this year, and one of them also had a £40 customs and handling fee added by HMRC and Fedex, which effectively more than double the amount I would have paid had I bought in December. It's not as if Italian sellers are offering bargain prices int he first place, so this is pretty bad news.

[peteracs]

my point is that this is a purchase from a private individual and is under the amount £135 (until shipping is added) there is no warning on the Ebay site (unless you click through to their rather vague explanation hidden away) so at the point of purchase you are presented with one price and then with VAT added once you've clicked through. I just thought that members might be wary of getting spares etc. without knowing you'll pay more  now than in December.

This is also an issue with some sellers on Ebay in the US who use the EBay shipping program where VAT, customs charge and shipping is automatically added. It is normally in the listing as specific charges you will also incur. I tend to not buy from these individuals as the charges often are high and I have seen anecdotal evidence of the VAT being charged again once the goods are being delivered, though not had that myself.

Personally I would contact the seller and arrange for collection with my own courier which is simple using online services such as Transglobal express which can save you some money anyway. Then you are in control of the charges, but normally expect the courier to levy the VAT and a flat charge such as £10 for the import. The simplest way to get items with a low value from the EU now would be to use the regular post for small items, larger will have to be with a courier.

As to overall costs compared to December, there should not be a great difference as the VAT which was charged originally by the seller on items above the threshold to individuals here, should now be sold without VAT in the EU which is how items have always been sold from the US and how they are sold if shipping outside the UK. The VAT is then levied when it arrives here.

I am happy to be corrected, but this is how I have always seen the VAT riddle...

Peter

[Beckerman67]

I've just purchased some spares direct from a supplier in France and another in Italy (neither via eBay).
On both occasions I was charged the Net amount as displayed on their websites whereas prior to January 1st I was always charged the Gross amount.
Pleasantly surprised - unless they've done their sums wrong!

[Waka]

Understanding your points - I just know that items that I bought from a private individual for € 100 in December via Ebay is now 20% higher. A private individual (who wasn't charging IVA @ 22%) on there prices, is still not charging and collecting IVA or VAT and definitely not paying it. The funds are collected automatically by Ebay - who I do believe HMRC see as the seller and therefore liable.

[peteracs]

The seller always has the option not to go the automatic route, they can sort their own shipping etc. A number choose this route as it is easier for them I guess. I have often queried this from US sellers in the past and most are happy to not go through the EBay automatic tariff route (not avoid EBay, just avoid there automatic tax route). Some of course will not be happy to.

Pete

[Waka]

As a final note on this - i have received the last item I bought on Ebay for £106.50 - excluding shipping, the extra costs on this items in VAT and "other" Government charges, plus UPS fees comes to £69.35 ! So if you've been lucky enough to escape charges so far, I would suggest that rare spares from Italy, France, Germany, Holland etc are going to cost about 65% from now on.

[peteracs]

I think you have been ripped off, sadly.

Peter

[lancialulu]

I have today received spare parts >400eu value via DHL from Italy - no charges. I have also received from Italy (ebay) another consignment of new parts value similar to the first sent via Italian post Prioritaire again with out charges..... Maybe I have been lucky??