Brexit changes about selling in the UK using overseas suppliers

Discussion in 'Ecommerce Forum' started by junipaire2009, Feb 17, 2021.

  1. junipaire2009

    junipaire2009 UKBF Regular Free Member

    146 10
    Hi does anyone know if to sell fashion print on demand products in the UK using companies like Printful, Subliminator when the print on demand company is being printed outside the UK but you are selling to the UK. Before brexit it was possible to do and not be registered for VAT in the beginning when you are not making any turnover whatsoever and not meeting the £85,000 threshold. But heard yesterday on a Facebook group that a brexit change is coming in this year that means anyone using any other supplier not in the UK so products will be imported in to UK customers from outside the UK that everyone will need to be registered for VAT for your parcels to clear customs and HMRC has replaced the old customs charge (used to be taken at the time the package hits the UK) with this now being paid in the form of VAT at the time of sale in your online store, this is for sales under £135 and it gets even more complicated with over £135 orders.

    Does anyone else know of such a new change coming in, she was told by an accountant but she has set up a limited company so don't know for sure if this new rule is for limited companies and sole traders also even not reaching VAT threshold on turnover.
     
    Posted: Feb 17, 2021 By: junipaire2009 Member since: May 21, 2010
    #1
  2. DontAsk

    DontAsk UKBF Ace Free Member

    1,855 291
    Your post isn't clear to me, are you based in the UK using an overseas supplier or are you selling into the UK from overseas?

    There is no change to the requirements for UK companies to register or not. The threshold is still £85k.

    Overseas sellers, selling into the UK, need to register in the UK and charge VAT on sales under £135. I suspect many will not bother and the VAT will be levied by customs just as it was for non-EU imports before brexit.
     
    Posted: Feb 17, 2021 By: DontAsk Member since: Jan 7, 2015
    #2
  3. junipaire2009

    junipaire2009 UKBF Regular Free Member

    146 10
    Sorry yeah the first one "based in the UK using an overseas supplier"
     
    Posted: Feb 17, 2021 By: junipaire2009 Member since: May 21, 2010
    #3
  4. DontAsk

    DontAsk UKBF Ace Free Member

    1,855 291
    In that case it's the suppliers who are supposed to register for UK VAT.

    You may need to register, based on your turnover, or voluntarily if you think it makes sense, but nothing to do with Brexit.

    Obviously, if you are not registered you cannot reclaim the VAT paid.
     
    Posted: Feb 17, 2021 By: DontAsk Member since: Jan 7, 2015
    #4
  5. junipaire2009

    junipaire2009 UKBF Regular Free Member

    146 10
    Thanks for this info DontAsk I much appreciate it, you have put my mind at rest some.
     
    Posted: Feb 17, 2021 By: junipaire2009 Member since: May 21, 2010
    #5
  6. Trevor Andrews

    Trevor Andrews UKBF Contributor Free Member

    36 9
    I don’t know about rules to come, it’s already in place.

    If an E.U. supplies UK in excess of £70k a year they need to obtain a U.K. VAT number.

    If you ship to individuals located in U.K. any item under £135 (€150) The recipient does not have to pay the tax but the UK company selling it does.

    Also the courier companies are charging around €18-30 for handling documentation and delivery for each parcel.
     
    Posted: Feb 18, 2021 By: Trevor Andrews Member since: Feb 9, 2021
    #6
  7. junipaire2009

    junipaire2009 UKBF Regular Free Member

    146 10
    Hi Trevor

    Thanks for you help.

    So this company I really want to use is based in the US but production is China, (there is another company based in Amsterdam but also ship from China) and that's where they ship from to my UK customers.

    Are you saying now each parcel under £135 will get stopped in customs and there will be a charge of €18-30 for handling documentation and delivery for each parcel.
     
    Posted: Feb 18, 2021 By: junipaire2009 Member since: May 21, 2010
    #7
  8. Trevor Andrews

    Trevor Andrews UKBF Contributor Free Member

    36 9
    Well we have just had parcel from UK supplier with goods valued at £150 and ZERO VAT. We had a call from them asking what was in the parcel and providing us with link to charges invoice that was fully detailed. We then had to pay €78.53 We have been charged the Spanish VAT €41.64 ( which is fine, we would have to pay that anyway) and €36.89 for administration.

    I have just signed up with DHL and they have said they would charge €31 for collecting taxes and documentation on UK Deliveries. There was an alternative of €18 if we paid up front and took responsibility for any tariffs etc. but chatting to their customer service to clarify this.

    Having signed up with them their shipping rates are competitive so I guess other companies would be doing similar thing. UK government seems to have put this new import VAT charge collection down to couriers.
     
    Posted: Feb 18, 2021 By: Trevor Andrews Member since: Feb 9, 2021
    #8
  9. junipaire2009

    junipaire2009 UKBF Regular Free Member

    146 10
    So where are you based?

    I've contacted both print on demand companies I planned on using and the one from Amsterdam but produced in China says now the UK is not in the EU they no longer have to charge UK businesses not registered for VAT any VAT tax on orders, before brexit they were charging Dutch VAT, which is 21% to the order price, now they say as we are not based in the EU they don't have to charge this on top. They also told me that their UK customers using them as a supplier have had no problems with customs charges since brexit changes came in.
     
    Posted: Feb 18, 2021 By: junipaire2009 Member since: May 21, 2010
    #9