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
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Always look at "ACTIVE TOPICS" to see all posts in date & time order as they are sometimes moved; or look at "Your Posts".
Please add Reg. nrs. when posting a photo or anything about a car as this will help searches. Don't add punctuation next to nr. as this negates search.
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After Brexit?
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Re: After Brexit?
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.
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- Joined: Fri Feb 12, 2016 10:25 pm
- Location: Cheshire, UK
Re: After Brexit?
Good grief - Project Fear has reached this Forum!!!!
Re: After Brexit?
It's not Project Fear, it's project fact.
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- Wise Man
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- Location: Worcestershire Herefordshire border
Re: After Brexit?
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
1954 Conquest Mk1, 1956 Conquest Mk2, 1957 Conquest Century Mk2, 1955 Austin A90 Westminster
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- Posts: 154
- Joined: Fri Feb 12, 2016 10:25 pm
- Location: Cheshire, UK
Re: After Brexit?
Totally with you, Andy.
Re: After Brexit?
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.
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.
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- Posts: 154
- Joined: Fri Feb 12, 2016 10:25 pm
- Location: Cheshire, UK
Re: After Brexit?
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!
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!
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- Location: Nijmegen, The Netherlands
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Re: After Brexit?
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)
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)
Re: After Brexit?
Does everybody feel the same as me, that I’m absolutely bored with the whole Brexit issue ....
Cheers, Big Bad, Anti EU Al ! ! !
Cheers, Big Bad, Anti EU Al ! ! !