Brexit trade (custom) treaty - and Global Shipping Program (for EU trades)

[Ron (Netherlands)]

Dear fellow members, please be aware that when you buy something in Britain via *bay and the seller wants you to use the Global shipping program, that program does not comply with the Brexit free trade treaty that Britain concluded with the EU and therefore will charge out 20% custom duty upon your price.

cheers
Ron

[Tin Can]

Thanks Ron

I will reconsider Britain as source of LF

Shipping Internationally has also degraded on all continents

[HMG]

Thanks Ron

I will reconsider Britain as source of LF

Shipping Internationally has also degraded on all continents

Since the US was never part of the EU, should not impact you at all (unless you moved). Of course the issues with shipping (both international and domestic) affect everyone.

[Ron (Netherlands)]

I just had ordered a nice camera - but the custom duties was 1/3 of the price (about GBP 100)....too bad, luckily the seller agreed to cancel the transactions.

And for long I don't buy expensive equipment from the US - too high duties - and the Global Shipping Program takes its toll - so now I must reject Britain also - to bad since they had these fine handcrafted mahogany equipment -
wanted to do a transaction with CustomBellows, but have to reconsider that also.

[pgk]

Ron, I have had the opposite problem as I am selling an item and was queried by an EU buyer as to the significantly increased charges via the GSP. I contacted eBay and was assured that this is now correct. it appears that vat is not a tariff and is therefore chargeable, and that the GSP complies with this. I would very much like to be told that I am wrong though.

[Ron (Netherlands)]

Hi Paul, well the Custom charges are mainly VAT-related. My understanding was (but could be misunderstood) that for the next 4 or 5 years there wouldn't be a change, so Britain would still be part of the common market (free movement of capital and goods) apart from the free movement of persons.

Here we can find more info on custom (excise) duties and VAT: https://ec.europa.eu/taxation_customs/uk_withdrawal_en
we need to study this more in detail....

[lantau]

Ron, the UK is not in the common market anymore. The transition is over. There are no duties in theory, but that applies to british made goods only. A japanese lens from the UK will not be at zero tariff.

VAT is not a tariff, it is a local tax. It is the customs office which will charge import-VAT on incoming parcels because the seller didn't.

A seller with a large EU customer base can set up everything to handle these charges on their end. It takes some doing but can be done. Then its as easy for you as a domestic buy. Mouser Electronics in Texas is a great example. But they are huge and get better international FedEx rates than you'll get on domestic parcels. Any of my orders with them was here within 48h, no customs/VAT handling on my side.

[Ron (Netherlands)]

Ron, the UK is not in the common market anymore. The transition is over. There are no duties in theory, but that applies to british made goods only. A japanese lens from the UK will not be at zero tariff.

VAT is not a tariff, it is a local tax. It is the customs office which will charge import-VAT on incoming parcels because the seller didn't.

A seller with a large EU customer base can set up everything to handle these charges on their end. It takes some doing but can be done. Then its as easy for you as a domestic buy. Mouser Electronics in Texas is a great example. But they are huge and get better international FedEx rates than you'll get on domestic parcels. Any of my orders with them was here within 48h, no customs/VAT handling on my side.

Thanks Iantau for clarifying this. Indeed from the documents under the above link I get the impression there is now no tax free entrance anymore for British goods to the EU-common market (so not only for transit I guess). For us in the EU-memberstates, buying goods from Britain is now comparable to buying goods from the US, indeed with a VAT import charge and - sometimes - excise duties - and handling fees. .....these 3 levies were not charged when Britain was part of the EU-common market.

[Alan Klein]

Thanks Iantau for clarifying this. Indeed from the documents under the above link I get the impression there is now no tax free entrance anymore for British goods to the EU-common market (so not only for transit I guess). For us in the EU-memberstates, buying goods from Britain is now comparable to buying goods from the US, indeed with a VAT import charge and - sometimes - excise duties - and handling fees. .....these 3 levies were not charged when Britain was part of the EU-common market.

Ron, what difference would that make? Weren't the VAT taxes included when they were a member? Aren't the final prices now the same?

[lantau]

Ron, what difference would that make? Weren't the VAT taxes included when they were a member? Aren't the final prices now the same?

Others have mostly answered this, but to clarify: Yes, previously a UK business charged VAT when I bought from them. Now they do not charge VAT and my local customs office collects it instead. So no big difference in price, only in administrative overhead. Like having to go to a customs office in some cases.

It is much different for used items, however. Domestically (ie. inside the EU), when buying used items from private sellers (by definition always used) these don't charge VAT. Because the first buyer of the item already paid.

Similar for used items sold by commercial sellers. They pay so called differential VAT. I don't know how it works exactly, but they may pay a small percentage on the 'value' they added by trading the item. But in practice from the buyers viewpoint there is not VAT on used items from a dealer, *IF* these items have been in circulation inside the EU when the dealer acquired them.

Any item that is imported into the EU will attract VAT. That means the used items which I could buy VAT free from a UK dealer or private person will be charged on import now. That is be practical difference.

In short for UK purchases by me: new items only change the point of VAT collection. Used items attract additional VAT.