Need some advice on selling outside the UK post Brexit

[3 MORE YEARS]

Hi, Although I am not new to business, I am very new to e-commerce. I am about to launch an online store, and I feel my products could be sold outside the UK. Even if it becomes successful, it will most likely always be relatively small business. I have been reading in the press that post Brexit, selling or sending stuff into Europe has almost become too difficult. The kind of things I have heard is that when you sell a £20 item to an EU country, they get charged VAT and will almost always have to pay that before they receive delivery of the item.
Is this all true or is it an exaggeration? If it is true, is there a way around this for small stores?
If anyone has knowledge on online business beyond the UK (post Brexit), then please share your thoughts.
This is genuinely not a political post. I just need to be able to sell stuff outside the UK (preferably into Europe) with minimal difficulty.
Thank you.

 

[japancool]

The kind of things I have heard is that when you sell a £20 item to an EU country, they get charged VAT and will almost always have to pay that before they receive delivery of the item.

Yes, but you do not charge them UK VAT, so if you're VAT registered, it works out roughly the same - with the exception of the local procesing fees, which can be upwards of 10 euros. This is true regardless of whether the buyer is in the EU or not, although different countries have different thresholds when taxes become due (the US, for example, has a threshold of $800 or thereabouts).

If it is true, is there a way around this for small stores?

You can either send by DDP (delivery duty paid), where you pay the taxes up front (and therefore you should charge your customer for it), or you can use a solution like Taxamo or Crossborderit, where you pay a small fee per transaction, charge your customer VAT and the solution provider will take care of tax declarations and VAT payments to the local tax authorities.

 

[3 MORE YEARS]

Yes, but you do not charge them UK VAT, so if you're VAT registered, it works out roughly the same - with the exception of the local procesing fees, which can be upwards of 10 euros. This is true regardless of whether the buyer is in the EU or not, although different countries have different thresholds when taxes become due (the US, for example, has a threshold of $800 or thereabouts).



You can either send by DDP (delivery duty paid), where you pay the taxes up front (and therefore you should charge your customer for it), or you can use a solution like Taxamo or Crossborderit, where you pay a small fee per transaction, charge your customer VAT and the solution provider will take care of tax declarations and VAT payments to the local tax authorities.

Thank you that is very helpful. As it's a brand new business and I am not charging VAT. Let's say as an example, the business always stay small so below the VAT threshold, will I still need to charge customers outside the UK tax or VAT?

 

[japancool]

Thank you that is very helpful. As it's a brand new business and I am not charging VAT. Let's say as an example, the business always stay small so below the VAT threshold, will I still need to charge customers outside the UK tax or VAT?

No. If you're not VAT registered, then your selling price outside the UK is the same as your selling price in the UK - but your customers will be charged local VAT on top of that.

 

[Paul Kelly ICHYB]

Are you selling to EU, rest of the world or both?

Are you B2B, B2C or both?

 

[3 MORE YEARS]

Are you selling to EU, rest of the world or both?

Are you B2B, B2C or both?

My aim is to sell all over the world. My main focus is the UK. However, I am confident, almost certain this type of product would be wanted by a certain demographic across the globe. My main concern against selling it to far off places is shipping cost.

It's primarily be B2C, but there is small opportunity for B2B. However, my background is B2B. I haven't done less B2C. So, I will have some learning to do.

 

[Customs Geek]

It’s hard to generalise as each country around the world will have its own import duty and other taxes they impose on imports. Duty rates depend on the type of product and where it is manufactured. Many also have thresholds where import duty and or other taxes are not imposed or only partially imposed particularly for B2C.
Some countries have VAT , sales tax or GST some don’t so each country you intend to sell to will be potentially different.
The EU have a €150 threshold for import duty relief but import VAT is applicable on the whole value.
In a B2C transaction to the EU you would regard the import VAT as equivalent to the VAT they would have been charged if they bought from a local shop.