UK Vat
Hi Guys
I have just read a post on Norvic Philatelics Blog that oversees sellers will be required to collect VAT on goods entering UK at 20%.
Not sure if it will include all stamp sellers, this will come into effect on January 1 2021.
I have just read a post on Norvic Philatelics Blog that oversees sellers will be required to collect VAT on goods entering UK at 20%.
Not sure if it will include all stamp sellers, this will come into effect on January 1 2021.
Comments
Effective Jan 1, 2021, value added tax (VAT) must be collected for all goods entering the United Kingdom (UK).
There will be a 20% VAT rate on goods valued up to £135 (about $180 USD), which you must collect unless your online marketplace (e.g. eBay, Amazon, Etsy, etc.) is already collecting it. Current procedures for goods valued over £135 remain the same.
To prevent your UK shipments from being delayed, held, or returned by UK customs in 2021, please take the following steps:
1. Register for a VAT number with the UK: https://www.gov.uk/vat-registration
2. Collect VAT at the time of purchase.
3. Make quarterly VAT return payments to the UK.
In addition, you should include your VAT number on your customs declarations. This process will vary depending on your shipping software, so be on the lookout for instructions early next year.
Looks like I will need to stop selling to the UK with this added burden and risk of non-delivery. Do other countries also expect all sellers to collect tax for them?
Also how are they going to enforce tax collection in other countries? They will have to put 007,008,009, "Agent86" and "Agent99" on each case of failure to send collected money to the VATMEN. Spectre and Kaos are going to have a field day thinking up villianous schemes to pocket the tax.
From stamps.com BLOG...https://blog.stamps.com/2020/12/22/shipping-from-the-u-s-to-uk-with-2021-vat-rules/
The UK Post Office may also be interested in you shipping merchandise without paying the correct postage
Mike
"Within the United States, effective January 21, 2018, First Class Mail International Large Envelope/Flat service for merchandise is no longer available from the USPS. First Class Mail International Flats will only be approved for use when sending documents. This change was made by the USPS to comply with Universal Postal Union requirements. You can view the USPS announcement here: https://about.usps.com/postal-bulletin/2017/pb22482/html/updt_006.htm
Unfortunately, this means that any seller who ships an item from the United States, to an International destination must use the USPS First Class Package International service to legally send any merchandise directly through the USPS; this includes any collectible stamps, postcards, and comic books.
How much does USPS First Class Package International service cost?
Rates for USPS First Class Package International service start from approximately $12 to $20 depending on the destination."
So now this UK VAT tax creates another "headache" for US sellers. Don't think I'll be shipping to the UK, either.
Hopefully MARK can chime-in and advise how sellers should proceed.
Additionally does a simple method exist in order to exclude a country? When I asked HipStamp they told me only 2 default methods existed for ship to .. "domestic" and "everywhere else", but that I could set up my own countries or regions. To set up all other countries except UK would be a pain.
In order to remove a country from where you sell to, just go into postage setup scroll down the page and you will see location groups. Locate the country you want to remove, click on the little X and it will take it out. Save settings. Then you will have to update your listings to take that country out of your current listings. (It's really very simple)
HipStamp just got back to me and they were kind enough to do that for me. My sales to UK was only about $200 last year and that is not worth the hassle of dealing with this tax.
I've been reading this forum with much interest and despair! As a Brit living in France, I too am considering stopping my sales to the uk. I found the following link on the uk vat website. I'm not sure it is completely relevant but thought I would post it here to see what others make of it? (If this is not relevant, maybe admin could delete it).
https://www.gov.uk/government/publications/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021/changes-to-vat-treatment-of-overseas-goods-sold-to-customers-from-1-january-2021
Good luck with this - I'm going to have to re-read it again
James