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After Brexit?

pekkak
Posts: 23
Joined: Fri May 13, 2016 7:26 am
Location: Espoo, Suomi - Finland

After Brexit?

Post by pekkak » Fri Jan 04, 2019 4:02 pm

Does anyone know if I need to pay British VAT for spares which I buy after Brexit?
According to the Finnish Customs rules I must pay customs duty and VAT (24%) for spares bought from England after March 29, this year. This is in case if GB and EU don't reach an agreement. In case if they do, the procedure starts on December 31, 2020. I find unfair, if I need to pay double VAT for spares which I buy from England. This means in practice that spares for my British cars are about 30% more expensive.
Pelkka

Ursa major
Posts: 17
Joined: Wed Jan 11, 2017 7:21 pm
Location: Eindhoven

Re: After Brexit?

Post by Ursa major » Fri Jan 04, 2019 6:04 pm

Assuming that it works per current rules regarding exports from the U.K. to non-EU countries, suppliers from the U.K. will not charge VAT on exports. I cannot imagine any scenario under which consumers would have to pay double VAT.

terryfrombury
Posts: 152
Joined: Fri Feb 12, 2016 10:25 pm
Location: Cheshire, UK

Re: After Brexit?

Post by terryfrombury » Fri Jan 04, 2019 10:03 pm

Good grief - Project Fear has reached this Forum!!!!

Chris_R
Posts: 423
Joined: Wed Feb 10, 2016 12:48 pm
Location: Twickenham

Re: After Brexit?

Post by Chris_R » Sat Jan 05, 2019 10:40 am

It's not Project Fear, it's project fact.

Phillmore
Posts: 846
Joined: Sat Feb 13, 2016 1:25 pm
Location: Worcestershire Herefordshire border

Re: After Brexit?

Post by Phillmore » Sat Jan 05, 2019 11:35 am

Well I think it's interesting that someone in Finland knows what's going to happen after Brexit when no one in this country does ;). Sadly I tend to go along with the 'project fear' theory. The establishment didn't get the result they wanted and expected so are trying to change our minds (with propaganda) prior to a second referendum.
Andy

1954 Conquest Mk1, 1956 Conquest Mk2, 1957 Conquest Century Mk2, 1955 Austin A90 Westminster

terryfrombury
Posts: 152
Joined: Fri Feb 12, 2016 10:25 pm
Location: Cheshire, UK

Re: After Brexit?

Post by terryfrombury » Sat Jan 05, 2019 11:49 am

Totally with you, Andy.

Chris_R
Posts: 423
Joined: Wed Feb 10, 2016 12:48 pm
Location: Twickenham

Re: After Brexit?

Post by Chris_R » Sat Jan 05, 2019 1:48 pm

Today if a UK business sells a part it charges UK VAT. The item can then be dispatched to anywhere in the EU without any further duties or taxes. This is fact.
Today if a UK business sells a part for export to a country outside the EU it does not charge UK VAT. This is also fact. The business dispatches that part and the other country will levy import duties and taxes according to whatever tariff regime applies.
Any item bought from outside the EU is subject to EU import duties and taxes no matter where it is landed in the EU. This is also fact. There is a large set of tariffs of import duties covering just about every commodity that one can buy (I've been through it) and in some cases where it comes from. For example a widget from one country will have import duty of 10% but if it comes a different country the import duty will be 20%. These tariffs and how they are applied has been agreed by all EU member states which includes the UK.
When the UK leaves the EU, the UK will then be a country outside the EU. Unless there are other agreements in place covering duties and taxes, and as at today there is no agreement, then any goods sold from the UK to the EU will be subject to EU import duties and taxes according to the tariffs, all of which are laid down and defined. This is also fact.
Therefore, without any other agreement in place, our Finnish friend will have to pay to the Finnish Government the EU import duty and Finnish VAT on parts that he orders from the UK. He will not pay UK VAT because exports to other countries (today this does not include EU countries but after we leave the EU would include all EU countries) do not have VAT levied.
All of the above is fact, not fear. An agreement between the UK and the EU would of course change this.

All of this is why the border between the Republic of Ireland and Northern Ireland is such a big issue. If, after Brexit and if there is no EU/UK agreement covering duties and taxes, you live in Dundalk and drive to Newry (about 20 minutes down the road) and buy an 85" Samsung TV (£14,999) to take back to Dundalk (your local Currys in Dundalk doesn't have one but the branch in Newry does) you can claim a VAT refund (£2,500) as you are exporting the item from the UK. Those are the UK VAT rules that apply to non-UK citizens taking goods out of the UK. But you would then be importing that TV to the EU (having just saved £2,500 on the purchase price) and should now pay EU import duties and VAT to the Republic of Ireland government at the rates applied to TVs respectively in the EU and in the Republic of Ireland. If you don't then you would be importing goods to the EU from outside the EU and avoiding EU import duties which would be illegal. The reverse case would also be true.

terryfrombury
Posts: 152
Joined: Fri Feb 12, 2016 10:25 pm
Location: Cheshire, UK

Re: After Brexit?

Post by terryfrombury » Sun Jan 06, 2019 2:33 pm

Thank you for the very understandable explanation of some very complex VAT rules, Chris.

I am now more convinced than ever that the world will come to an end the moment that we leave the EU!!!

For many years I have voted in general elections in the UK, and I have never ever felt that the results should be challenged. We had a referendum - THE PEOPLE voted. Why do those who disagree with that result want to challenge it?

……………...anyway, this is not a topic for a car club forum!

h.j.thomassen
Posts: 30
Joined: Fri Mar 18, 2016 6:59 pm
Location: Nijmegen, The Netherlands
Contact:

Re: After Brexit?

Post by h.j.thomassen » Sun Jan 06, 2019 8:01 pm

In any case, this discussion is in the wrong category of this forum, although i.m.h.o. the posting which started this thread, and the answer by Chris_R, is perfectly appropriate.
Brexit in general belongs under the "Chat Forum & General News" title (and has been discussed heavily there in the past).

Hendrik-Jan (living on the other side of the dividing line)

JT7196
Posts: 984
Joined: Sat Feb 13, 2016 7:22 am

Re: After Brexit?

Post by JT7196 » Sun Jan 06, 2019 10:56 pm

Does everybody feel the same as me, that I’m absolutely bored with the whole Brexit issue ....💤💤💤💤💤💤💤💤💤

Cheers, Big Bad, Anti EU Al ! ! !

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