How many new jackets do you have coming (and how many potential ones)?

[Imuricecreamman]

I admittedly didn’t read the details of the Brexit trade deal with the EU but it is against common sense to assume the customer will end up paying VAT twice both in UK and in the importing country to the local tax authority.

Local taxes like the VAT are normally not charged when exporting but only charged to local customers. For instance, when buying from Japan the 10% japanese sale tax is waived for international customers (of course you still pay it if you use a proxy). You get hit with custom fees and other applicable taxes by your own country. Typically in EU these are the VAT plus other fees.

Aero refused to vaive the UK vat when shipping to me in Norway. So full price along with 25% vat when it arrived in Norway. The handlingfees in Norway were negligeble.

 

[Robbie79]

Aero refused to vaive the UK vat when shipping to me in Norway. So full price along with 25% vat when it arrived in Norway. The handlingfees in Norway were negligeble.

I'm pretty sure that they have to reconsider their decision after a couple of months but I might be wrong. Iron Heart UK made following announcement:
"After 1st January 2021, our goal is that you will not pay anything more for your purchase than is advertised on the Iron Heart UK website. Orders shipping from us after 1st January 2021 to EU countries will be shipped “tax and duty paid” so you will not pay any additional costs on your purchase over and above prices on our website."

 

[Berto]

I'm pretty sure that they have to reconsider their decision after a couple of months but I might be wrong. Iron Heart UK made following announcement:
"After 1st January 2021, our goal is that you will not pay anything more for your purchase than is advertised on the Iron Heart UK website. Orders shipping from us after 1st January 2021 to EU countries will be shipped “tax and duty paid” so you will not pay any additional costs on your purchase over and above prices on our website."

hope you're right

 

[Imuricecreamman]

I'm pretty sure that they have to reconsider their decision after a couple of months but I might be wrong. Iron Heart UK made following announcement:
"After 1st January 2021, our goal is that you will not pay anything more for your purchase than is advertised on the Iron Heart UK website. Orders shipping from us after 1st January 2021 to EU countries will be shipped “tax and duty paid” so you will not pay any additional costs on your purchase over and above prices on our website."

How Will they do this? Will they deduct the vat percentage of the country where they ship the goods? I can't see customs settling for a message of" tax and duty paid" on the parcel...

 

[Mich486]

Aero refused to vaive the UK vat when shipping to me in Norway. So full price along with 25% vat when it arrived in Norway. The handlingfees in Norway were negligeble.

That sucks and I don’t think it is right. Double taxation is never right.

Anyway, take for example one of the largest online stores in the EU of denim/heritage clothing, German based Cultzim.com. Price for outside of the EU customers are clearly quoted ex 19% German VAT. That is how I would expect things to work to and from the UK.

 

[Imuricecreamman]

That sucks and I don’t think it is right. Double taxation is never right.

Anyway, take for example one of the largest online stores in the EU of denim/heritage clothing, German based Cultzim.com. Price for outside of the EU customers are clearly quoted ex 19% German VAT. That is how I would expect things to work to and from the UK.

Yup. The germans are really upfront about this and EVERY german store I've bought from has done it this way.

 

[Robbie79]

How Will they do this? Will they deduct the vat percentage of the country where they ship the goods? I can't see customs settling for a message of" tax and duty paid" on the parcel...

I think it’s Kind or DDP shipping. EBay also offer this service

 

[Mich486]

Ok I checked what the rules are for exports from UK to EU from 1st of January 2021 (today):


“VAT on exports
As of 1 January 2021, when it comes to exporting goods to EU countries, the VAT situation also changes. Exports to EU countries are treated like those to non-EU countries, which is to say, they should be zero-rated for UK VAT.”

link: https://www.sage.com/en-gb/blog/customs-and-vat-after-brexit/amp/

 

[Imuricecreamman]

I think it’s Kind or DDP shipping. EBay also offer this service

Well.. Then we end UP paying either way, because the fees I've paid with the ebay program has been extorbitant. Jackets with BIN price of 120 pounds ending costing north of 200 after being held hostage at their UK facility for a week or two. So it would surprise me if UK stores won't be forced to increase their prices due to this. But I guess IH didnt mention a price hike in their message, only that we won't pay more than the advertised price.

 

[Marc mndt]

Well.. Then we end UP paying either way, because the fees I've paid with the ebay program has been extorbitant.

Were you charged by this Pitney Bowes limited scam company?

https://www.thefedoralounge.com/threads/ebay-arghh.97436/page-13#post-2708623

 

[red devil]

Ok I checked what the rules are for exports from UK to EU from 1st of January 2021 (today):


“VAT on exports
As of 1 January 2021, when it comes to exporting goods to EU countries, the VAT situation also changes. Exports to EU countries are treated like those to non-EU countries, which is to say, they should be zero-rated for UK VAT.”

link: https://www.sage.com/en-gb/blog/customs-and-vat-after-brexit/amp/

That is pretty much it as far as I am aware, will be testing this out soon with an order from a European site

 

[Imuricecreamman]

Were you charged by this Pitney Bowes limited scam company?

https://www.thefedoralounge.com/threads/ebay-arghh.97436/page-13#post-2708623

Yes, sir... Call me a sucker cause I've done it several times.

 

[dannyk]

On a personal sales note what I’ve started doing if people outside the US (where I am based) are interested in something I’m selling I will split shipping costs. With Brexit and America’s Trade Wars (which this is not the place for the politics of any of that) shipping and taxes have become exorbitant. I personally feel that location should not be an impediment to someone owning something they want. So I’ll put used/old in the description, put a lower value, and put them in old or beat up boxes, and like I said split the shipping. Does it solve all shipping or tax issues? Nope. But it’s literally the least I can do to try and help my fellow TFL members catch a break.

 

[Blackadder]

That sucks and I don’t think it is right. Double taxation is never right.

Anyway, take for example one of the largest online stores in the EU of denim/heritage clothing, German based Cultzim.com. Price for outside of the EU customers are clearly quoted ex 19% German VAT. That is how I would expect things to work to and from the UK.

To my knowledge, Aero, Eastman and Lewis Leather charges overseas (non EU) customers the same price as British customers which presumably means the VAT is included in the price and will not be deducted. My understanding after reading Aero's response on VLJ is that 1) their price is much higher at their overseas dealers say like Japan therefore 2) they in effect absorbed the VAT (paying out of their own pocket) for local British hence their listed price does not (in their mind) include VAT and 3) that the return and exchange costs from overseas justify it.
Lewis Leather at least waives the overseas shipping to compensate for not deducting the VAT. Aero charges a flat rate of GBP50 (that is a few years ago) no matter what you purchase (shipping of my ANJ4 costs the same as my A-2 but I have never tried ordering say a dozen jackets from them in one order). I guess that reduce Aero's admin cost so they can offer the same bargain price in stead of raising their prices like Eastman and LL.
Not all Japanese shops offer VAT free shopping but most of those who are willing to ship overseas do offer VAT free or a discount that is close to the equivalent of the 10% VAT.

 

[Imuricecreamman]

To my knowledge, Aero, Eastman and Lewis Leather charges overseas (non EU) customers the same price as British customers which presumably means the VAT is included in the price and will not be deducted. My understanding after reading Aero's response on VLJ is that 1) their price is much higher at their overseas dealers say like Japan therefore 2) they in effect absorbed the VAT (paying out of their own pocket) for local British hence their listed price does not (in their mind) include VAT and 3) that the return and exchange costs from overseas justify it.
Lewis Leather at least waives the overseas shipping to compensate for not deducting the VAT. Aero charges a flat rate of GBP50 (that is a few years ago) no matter what you purchase (shipping of my ANJ4 costs the same as my A-2 but I have never tried ordering say a dozen jackets from them in one order). I guess that reduce Aero's admin cost so they can offer the same bargain price in stead of raising their prices like Eastman and LL.
Not all Japanese shops offer VAT free shopping but most of those who are willing to ship overseas do offer VAT free or a discount that is close to the equivalent of the 10% VAT.

I can certainly understand the rationale behind the practice and I have a feeling they might have to raise their prices if they had to adhere strictly to this now that they are outside the EU as I'm sure a lot more people Will be asking them this. Maybe Even as high as 20-30% to mitigate the cost and effort involved.

 

[Carlos840]

On a personal sales note what I’ve started doing if people outside the US (where I am based) are interested in something I’m selling I will split shipping costs. With Brexit and America’s Trade Wars (which this is not the place for the politics of any of that) shipping and taxes have become exorbitant. I personally feel that location should not be an impediment to someone owning something they want. So I’ll put used/old in the description, put a lower value, and put them in old or beat up boxes, and like I said split the shipping. Does it solve all shipping or tax issues? Nope. But it’s literally the least I can do to try and help my fellow TFL members catch a break.

Be careful with declaring lower value when shipping to the EU.
The parcel can be stopped by customs, and they can ask the receiver of the parcel for a proof of payment that matches the declared value.
It has happened to me twice, once in the UK, once in Belgium.
Luckily both times the declared value was accurate and i could send them a proof of payment, but i have heard of people not having proof and the item being sent back to the the seller or confiscated.

If i ask a seller to declare a lower value i will also pay in two separate payments so that i have an invoice/payment slip that matches the lower declared value... (like if something i buy is worth $1000 i'll split it in two 500$ payments and ask the seller to declare the value as being $500)

 

[Marc mndt]

Be careful with declaring lower value when shipping to the EU.
The parcel can be stopped by customs, and they can ask the receiver of the parcel for a proof of payment that matches the declared value.
It has happened to me twice, once in the UK, once in Belgium.
Luckily both times the declared value was accurate and i could send them a proof of payment, but i have heard of people not having proof and the item being sent back to the the seller or confiscated.

If i ask a seller to declare a lower value i will also pay in two separate payments so that i have an invoice/payment slip that matches the lower declared value... (like if something i buy is worth $1000 i'll split it in two 500$ payments and ask the seller to declare the value as being $500)

What if the seller declared it as a gift?
Let's say my aunt across the pond sends a jacket to me. There is no financial transaction and therefore I don't have prove of payment. Would customs confiscate the jacket?

 

[Carlos840]

What if the seller declared it as a gift?
Let's say my aunt across the pond sends a jacket to me. There is no financial transaction and therefore I don't have prove of payment. Would customs confiscate the jacket?

Gift makes no difference, in the Uk for example:

"Goods sent as a gift that are over £39 in value are liable to Import VAT. Customs Duty also becomes payable if the value of the goods is over £135."

Edit: in Belgium the max value for a tax free gift is 150eur. If you refuse to pay import tax on a gift the package is sent back or destroyed.

 

[Mich486]

Another reason is that the insurance also just covers the declared value normally. So if it gets lost the sender can only claim back the amount declared. Shops will normally refuse to do that for this reason.

(Also it’s technically illegal to lower the declared value )

 

[dannyk]

Be careful with declaring lower value when shipping to the EU.
The parcel can be stopped by customs, and they can ask the receiver of the parcel for a proof of payment that matches the declared value.
It has happened to me twice, once in the UK, once in Belgium.
Luckily both times the declared value was accurate and i could send them a proof of payment, but i have heard of people not having proof and the item being sent back to the the seller or confiscated.

If i ask a seller to declare a lower value i will also pay in two separate payments so that i have an invoice/payment slip that matches the lower declared value... (like if something i buy is worth $1000 i'll split it in two 500$ payments and ask the seller to declare the value as being $500)

Let me say I’ve never done this just on my own. Only if the buyer and I talk. So they know the risks as well. That’s also why I use an old or blemished box. In the hopes they see used boots and a crappy looking box and assume yeah that looks right. But yeah to be clear I’ve never just done that without the buyer asking or me asking. I wouldn’t want to be responsible for any shenanigans. So far never had any buyer have an issue with it.