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Author Topic: Post-Brexit Shipping (EU<->UK): Lack of information from traders  (Read 24114 times)

Offline Antonio J Carrasco

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Re: Post-Brexit Shipping (EU<->UK): Lack of information from traders
« Reply #315 on: July 01, 2021, 04:36:24 AM »
Good points too, Andrew.

Offline Fighting15s

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Re: Post-Brexit Shipping (EU<->UK): Lack of information from traders
« Reply #316 on: July 01, 2021, 06:38:42 AM »
Just to give an idea of the costs of appointing an EU intermediary, the costs range from a low 1250Ä a year to 4800Ä a year. Royal Mailís chosen intermediary for its IOSS solutions is Deloitte, which charges £2000 a year.

I canít answer for every small miniatures manufacturer, but with EU sales nowadays of 100 orders a year (down from nearer 800 in my AB/Eureka years), the Deloitte route would add £20 per EU order, with typically higher VAT rates than the UKís 20%, necessitating another price adjustment in the shop. There is still the issue of having a shopping cart that could charge VAT on orders under 150Ä but not on orders over that value. In short, the cost of using an intermediary would, for customers in a number of EU countries, be far higher than simply paying VAT and a handling fee on import. The exceptions are the Netherlands, Belgium and Denmark, where customers would be slightly better off for only paying an extra £20 an order...

So for the present, for a number of suppliers, the cheapest and most cost effective route for sales to EU customers is for the customer to pay VAT and handling fees on import.

Andrew, however, may be able to provide some illumination as to the actual cost of using a marketplace such as Etsy. I still object in principle to small businesses being driven by VAT rules into the arms of large commercial concerns, i.e. marketplaces.

Itís not all potential gloom. Royal Mail is also offering an IOSS solution via Taxamo, which costs just £2 per parcel. However, the only e-commerce platform it integrates with is Magento. There is also a direct API integration. Details at https://www.taxamo.com/taxamo-assure-rmg If it eventually supports other major shopping carts as a simple plugin, then I can imagine it will be more immediately usable. Until then, I continue to sell to the EU as normal, deducting VAT and having customers pay VAT and handling fees to the mail service on import.
« Last Edit: July 01, 2021, 02:11:24 PM by Fighting15s »
Ian
Fighting 15s
Gladiator Miniatures, Fighting 15s Flags, Martian Empires and Flashing Blade Miniatures
https://www.fighting15s.com

Offline Zaheer

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Re: Post-Brexit Shipping (EU<->UK): Lack of information from traders
« Reply #317 on: July 01, 2021, 07:33:17 AM »
I'm still selling to the EU. Introducing flat-rate shipping (above large letter) to help offset VAT (at least in part). I'm not VAT registered so IOSS is more than I'm comfortable with at the moment.

Will have to see how it goes over the next few months, either looking to increase or decrease the shipping discount as required. As for my next Kickstarter, I am still working on that.

Needless to say I very much appreciate the patience and support of all of my European customers (from this island and the mainland) during this... trying time.

Offline Andrew Rae

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Re: Post-Brexit Shipping (EU<->UK): Lack of information from traders
« Reply #318 on: July 01, 2021, 09:57:20 AM »
Andrew, however, may be able to provide some illumination as to the actual cost of using a marketplace such as Etsy.

It's not cheap. But for EU sales, I see it as a choice between Etsy fees or no sales at all, given the buying patterns of my customers.

I really like Taxamo Assure as a solution - removes all the tax liability for sellers, just like selling on Ebay or Etsy. If only I could integrate the bloody thing... There are some cheap Intermediaries popping up. One is handing out IOSS numbers for a 20 euro monthly fee, plus 1 euro fee per order. Gonna leave that one for other guinea pigs. It doesn't fill me with confidence given the tax risks they're taking on. HMRC are still saying they'll open a UK IOSS portal for registration at some point (they should've launched the OSS portal for NI businesses today...), but it remains to be seen how that's going to work regarding Intermediaries.

Offline Antonio J Carrasco

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Re: Post-Brexit Shipping (EU<->UK): Lack of information from traders
« Reply #319 on: July 01, 2021, 04:33:55 PM »
Thanks for the info, Ian. I didn't know how it worked, but now it makes sense that some manufacturers are uncomfortable with IOSS. I would be, in their place! I think that your solution is reasonable, at least for the moment.

Presently, I have two orders about to arrive, from Sarissa and Perry Miniatures (both ordered before 1st July, but thanks to Postal Services, they will arrive any time next week), so I will see how are handled by Correos, and how much extra they charge me. The Perry's order does not bother me, as their website already charges the purchases from the EU without VAT, therefore the only real extra cost will be the handling fees (which sucks, particularly given the fact that Correos is a semi-public business and it is financed via taxes!), but I do not know what will happen with Sarissa's...

Hope Taxamo will be easier to implement in the future and we can go back to business as usual.


Offline Antonio J Carrasco

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Re: Post-Brexit Shipping (EU<->UK): Lack of information from traders
« Reply #320 on: July 05, 2021, 11:52:57 AM »
I just received a small order from the Perry brothers. No VAT charged.

What I do not get is why the EU and UK do things so complicated. Wouldn't be easier simply to charge your local VAT to customers and collect it locally and then exchange info and compensate the difference? Imagine that British nationals buy products in EU countries that would suppose 2.4 billion euros in VAT; EU customers buy products in the UK for a value of 2.3 billion euros in the same quarter; then UK makes a transfer of 0.1 billion to the EU, or vice versa, depending who collected more. Technically shouldn't be that difficult to implement.

Offline Antonio J Carrasco

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Re: Post-Brexit Shipping (EU<->UK): Lack of information from traders
« Reply #321 on: July 14, 2021, 11:12:00 AM »
Another small order received from the UK, in this case from Sarissa, and again no VAT charges.

Up to this moment the only order that I received from the UK that has been hit by customs was a big KS order from Flags of War (200+ GBP). All other orders have passed under the radar.

Offline Andrew66

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Re: Post-Brexit Shipping (EU<->UK): Lack of information from traders
« Reply #322 on: July 25, 2021, 12:06:43 AM »
Iíve still not encountered  Vat charges on any purchases Iíve made which is good news , most orders have been under 70Ä 

 

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