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Ebay - 2021 uk vat


Vadnochka

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49 minutes ago, Julianb said:

Do you think this VAT charge only affects 'major' dealers and not those offering a few for sale?

Just bought one from New York with no extra fees.

Yes, I noticed something similar too. Perhaps it's something that each seller needs to configure, I don't know.

However, unless it's declared as a gift, you'll have to pay VAT or VAT + Import Duty upon arrival to the UK (based on the £135 threshold). And perhaps some handling fees too?

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Hi 

just bought a cheapie off Carolina soul $8 to see what happens $1.60 tax automatically added to bill before i could  contact them and ask for gift ect. looks like were all fucked unless you know some one with a USA address who can send to you as a gift

thats my record collecting nipped in the bud, may as well sell up, and thats on the cheapies, i usually go for the more high end items but with obscene prices and taxes on top you need to be a millionaire to collect these days.  wish it was the good old days of paper lists and the seller personally known to you and would happily declare as gift. is there going to be anyway round this or appeal ect as this is really going to mess things up for UK collectors

ATB

Floyd

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1 hour ago, Floyd said:

Hi 

just bought a cheapie off Carolina soul $8 to see what happens $1.60 tax automatically added to bill before i could  contact them and ask for gift ect. looks like were all fucked unless you know some one with a USA address who can send to you as a gift

thats my record collecting nipped in the bud, may as well sell up, and thats on the cheapies, i usually go for the more high end items but with obscene prices and taxes on top you need to be a millionaire to collect these days.  wish it was the good old days of paper lists and the seller personally known to you and would happily declare as gift. is there going to be anyway round this or appeal ect as this is really going to mess things up for UK collectors

ATB

Floyd

It's Ebay who had 20% automatically isn't it ?  Not the seller although Julian's earlier post does contradict that. 

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58 minutes ago, Martin Phillips said:

A cheapie off Carolina Soul?  Blimey you did well there! The VAT is not daunting people at all.That record by the Sheltons graded as VG- has currently hit almost 360 pounds at Carolina Soul .A MINT- copy on Discogs sourced in America again  sold for 80 pounds last September !!!

Yeah, I don't get it either.  I look at his lists and lucky to find a VG+ grade on both 45s and albums and yet people bid as if M-. And as you say more than what you could get them for elsewhere with a little patience.

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36 minutes ago, Modernsoulsucks said:

It's Ebay who had 20% automatically isn't it ?  Not the seller although Julian's earlier post does contradict that. 

He was happy to put $10 valuation on it so let's see what happens when it hits the UK. I'll keep everyone updated.

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There's absolutely no sign that UK buyers have been neutered by this imposition of VAT.Little Joe & the Sunkings Question of Love  in pretty good nick  which does appear to be very rare in fairness had a small flurry of late bids raising it from 167 dollars to 767 dollars if I remember correctly, with the 20% to be added for good measure.Of course i'm making an assumption it's a UK buyer.The only other copy I detected was a slightly beat up one sold only in the USA in 2017 for about 120 dollars 

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20 hours ago, Martin Phillips said:

There's absolutely no sign that UK buyers have been neutered by this imposition of VAT.Little Joe & the Sunkings Question of Love  in pretty good nick  which does appear to be very rare in fairness had a small flurry of late bids raising it from 167 dollars to 767 dollars if I remember correctly, with the 20% to be added for good measure.Of course i'm making an assumption it's a UK buyer.The only other copy I detected was a slightly beat up one sold only in the USA in 2017 for about 120 dollars 

Oh Dear seems it is the big problem I suggested

Shoppers on the continent buying from UK firms face the same rules as UK shoppers do in reverse so would have had to pay VAT and customs charges, because the goods or the materials they were made from, originated from outside the EU.

https://www.bbc.co.uk/news/business-55752541

 

Edited by Blackpoolsoul
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Well as some of you have rightly said VAT is not applicable on any itenm over £135.As for import charges I can't say conclusively. if the seller is obliged to show the actual price.I'm awaiting a couple of records from America so will see what is on the customs declaration! 
     As for the Shelton's Yesterdays Laughter you probably know it fetched a whopping 990 dollars about eleven times the price of the  one sold on Discogs back in September!

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4 minutes ago, Martin Phillips said:

Well as some of you have rightly said VAT is not applicable on any itenm over £135.As for import charges I can't say conclusively. if the seller is obliged to show the actual price.I'm awaiting a couple of records from America so will see what is on the customs declaration! 

The BBC article states: "The free trade deal means there are no quotas or tariffs on the goods traded between the EU and UK, but that doesn't mean there are no extra taxes or costs."

VAT is now chargeable on ALL goods being imported, regardless of cost. Charged at point of sale for goods under £135 - and orders over £135 are subject to VAT and additional import tax surcharges. Ebay are now charging the 20% VAT onto purchases, and it's only a matter of time before Discogs introduces it. They add sales taxes for Australia and certain US states already.

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The new VAT imposition looks like a post-Brexit wheeze as eBay can no longer slush their funds offshore to Luxembourg. It looks like HMRC have done a deal with eBay which will suit both parties as the former will gain more tax and the latter can continue to avoid paying a higher level of corporation tax. I suspect that Customs duties will still be charged in the usual way until I hear to the contrary - I for one am not experimenting with this for the time being.

As suggested on Soul-Source in a previous thread, buyers and sellers should unilaterally agree a low price eg 75cents, for every dirty, scratched, unwanted and uncared for 60’s soul record that crosses the Atlantic; ‘finders’ fees’ could be deducted from final auction prices resulting in low ticket declarations and zero Customs duty.🤫

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On 24/01/2021 at 18:12, Modernsoulsucks said:

Yeah, I don't get it either.  I look at his lists and lucky to find a VG+ grade on both 45s and albums and yet people bid as if M-. And as you say more than what you could get them for elsewhere with a little patience.

The days of NM and M- are over. Jason grades conservatively, but the stock is not what it used to be like in the beginning. Even G records are worth having if dead rare and can be cleaned up; better to have a rough copy than no copy at all says he pondering whetherWayne Champion on Invictus was a bargain?

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2 minutes ago, Frankie Crocker said:

The days of NM and M- are over. Jason grades conservatively, but the stock is not what it used to be like in the beginning. Even G records are worth having if dead rare and can be cleaned up; better to have a rough copy than no copy at all says he pondering whetherWayne Champion on Invictus was a bargain?

Well we are all different.

I wouldn't have anything less than EX/M- in my collection. I would go without.

And everything I buy is NM /M- so plenty of records around in that condition to buy I haven't got.

I take your point about the rarities. At one time I wouldn't have a non-original but I've slowly come around to getting legal re-issues of 45s I'm not likely to find or be able to afford. Not that I wouldn't buy to sell a poor condition rarity if it was really cheap but people are throwing big money at such items now.

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On 24/01/2021 at 17:09, Martin Phillips said:

A cheapie off Carolina Soul?  Blimey you did well there! The VAT is not daunting people at all.That record by the Sheltons graded as VG- has currently hit almost 360 pounds at Carolina Soul .A MINT- copy on Discogs sourced in America again  sold for 80 pounds last September !!!

 Bidding war here. Record has featured in Wants Lists on Soul Source. Tug of war between US Tijuano soul and Northern collectors here. I thought about going for the copy last year but it was too pricey for the sales box. I reckon the Sheltons on Lance is staying in the USA.

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On 09/01/2021 at 17:53, Source Team said:

the non vinyl marketplace vat related posts have been split off and moved to current affairs forum and topic here

https://www.soul-source.co.uk/forums/topic/415680-current-affairs-topic-2021/

 

 

 

On 21/01/2021 at 11:54, Source Team said:

non vinyl political post dropped

use the current affairs topic above if wish to discuss workers rights etc

another non-vinyl brexit based post dropped

member given a site advisory warning for repeated off topic posts

 

 

Current affairs topic...

https://www.soul-source.co.uk/forums/topic/415680-current-affairs-topic-2021/

 

Edited by Source Team
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I've just bought a record from a well-known Finnish label. The record which cost 12 euros is manufactured in Germany and is now in the care of our Post Office. The vat of 20% was paid at the time of purchase but the PO still want to charge an £8 handling fee. Anyone any idea as to why? There is no import duty according to official  published list.

I'm very tempted to call their bluff and resource the record when it appears in the UK.

 

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@DukeBurgundy that's outrageous. I'd really like to know what's changed for the Post Office to charge an extra £8 handling fee. Sigh.

In other news, the record I'm waiting from the EU has finally arrived in the UK after 8 days. It still needs to go through sorting, ready for delivery, etc. I'll update updating this thread.

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7 hours ago, DukeBurgundy said:

I've just bought a record from a well-known Finnish label. The record which cost 12 euros is manufactured in Germany and is now in the care of our Post Office. The vat of 20% was paid at the time of purchase but the PO still want to charge an £8 handling fee. Anyone any idea as to why? There is no import duty according to official  published list.

I'm very tempted to call their bluff and resource the record when it appears in the UK.

 

How can they charge £8 for collecting nothing if you paid up front? That can't be right, if it was 'honest bob's car sales' he'd be outed on Watchdog & done for fraud !

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8 hours ago, Bocanada said:

@DukeBurgundy that's outrageous. I'd really like to know what's changed for the Post Office to charge an extra £8 handling fee. Sigh.

In other news, the record I'm waiting from the EU has finally arrived in the UK after 8 days. It still needs to go through sorting, ready for delivery, etc. I'll update updating this thread.

 

7 hours ago, Merve said:

How can they charge £8 for collecting nothing if you paid up front? That can't be right, if it was 'honest bob's car sales' he'd be outed on Watchdog & done for fraud !

 

This is Royal Mail's own words from their website

"What does the Royal Mail handling fee cover?

Our £8 handling fee reflects the cost of clearing items through customs and presenting them to Border Force.

This includes staff costs, storage, administration and handling of the item through Customs. The fee also covers storage and cash handling processes at the Delivery Office."

It sounds very vague and general to me and almost could sound as if they have used the new rules as an excuse to charge a "Willy Nilly" fee

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I've been doing some checking and research on line for a few days. Without boring the pants off everyone with EU rules etc, some quick background info. 

The UK were required to charge VAT on some goods as a prerequisite to joining the EEC in the seventies. Since then we have  been part of the EU scheme and the EU has been trying to harmonize rates to ensure fair competition. The EU also saw VAT as a major source of fraud and financial irregularities. Now the UK has left they have reciprocal VAT in place to protect UK manufacturers and exporters and provide a "level playing field". The government advice on its website makes no differentiation between EU and US although the legislation is clearly aimed at trade with the EU now we have left the EU VAT Framework.

So the interesting part I saw in advice from an accountancy company is that the VAT charge is payable at the point of sale. It also states that overseas businesses should register for VAT with the UK Government.

For OMP's like Ebay, Amazon, Discogs etc they can easily have systems in place to collect this VAT. Ebay has for some time been collecting extra payment via their Global Shipping Program and if your seller is using this you've probably noticed extra charges already.

From this there are some questions raised:

1. Will small time / individual record sellers in the US register for UK VAT if they are not using an OMP ?  ( I would say no they wont.)

2. If a parcel arrives in the UK with Royal Mail, should they assume the VAT has been paid at the point of sale i.e. US ? (again I think they should assume this)

3. If RM assume VAT is paid, should they be charging a fee to get it through customs ? (again I think they may be on dodgy ground here)

Any thoughts ?

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29 minutes ago, Billy Jo Jim Bob said:

I've been doing some checking and research on line for a few days. Without boring the pants off everyone with EU rules etc, some quick background info. 

The UK were required to charge VAT on some goods as a prerequisite to joining the EEC in the seventies. Since then we have  been part of the EU scheme and the EU has been trying to harmonize rates to ensure fair competition. The EU also saw VAT as a major source of fraud and financial irregularities. Now the UK has left they have reciprocal VAT in place to protect UK manufacturers and exporters and provide a "level playing field". The government advice on its website makes no differentiation between EU and US although the legislation is clearly aimed at trade with the EU now we have left the EU VAT Framework.

So the interesting part I saw in advice from an accountancy company is that the VAT charge is payable at the point of sale. It also states that overseas businesses should register for VAT with the UK Government.

For OMP's like Ebay, Amazon, Discogs etc they can easily have systems in place to collect this VAT. Ebay has for some time been collecting extra payment via their Global Shipping Program and if your seller is using this you've probably noticed extra charges already.

From this there are some questions raised:

1. Will small time / individual record sellers in the US register for UK VAT if they are not using an OMP ?  ( I would say no they wont.)

2. If a parcel arrives in the UK with Royal Mail, should they assume the VAT has been paid at the point of sale i.e. US ? (again I think they should assume this)

3. If RM assume VAT is paid, should they be charging a fee to get it through customs ? (again I think they may be on dodgy ground here)

Any thoughts ?

Good stuff and the confusion lies (I think) as you say with Online Market Places (OMP's) who "should" charge and pay to the relevant authorities the VAT at point of sale. If "extra" import duties apply (and yes these are on top of the VAT in some cases) then I believe, that is the collectable at the door money, which is why the Royal Mail has also quoted an £8 charge.

Of course, if items are from another source, then VAT and Import tax (if applicable) will be collected at the door (I assume)

And all EU countries will start their VAT and import duties after July 2021, when they have sorted amounts for each member state, I believe.

Who would have thought how profitable January 1st 2021 could be for the HMRC

Staggering, I guess, if you think about the £££££££'s involved and I am wondering also, if, in the long term, prices will reduce to offset the 20% + extra, payable by the customer.

I have noticed already the increase in goods refused at the door and items being returned

Edited by Blackpoolsoul
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8 minutes ago, Blackpoolsoul said:

Good stuff and the confusion lies (I think) as you say with Online Market Places (OMP's) who "should" charge and pay to the relevant authorities the VAT at point of sale. If "extra" import duties apply (and yes these are on top of the VAT in some cases) then I believe that is the collectable at the door money which is why the Royal Mail has also quoted an £8 charge.

Of course if items are from another source then VAT and Import tax (if applicable) will be collected at the door (I assume)

And all EU countries will start their VAT and import duties after July 2021 when they have sorted amounts for each member state, I believe.

"Of course if items are from another source then VAT and Import tax (if applicable) will be collected at the door (I assume)"

Yes, that's my point in the question. How do RM know if VAT has been paid or not if the item is coming from an individual seller with no OMP ? I think they have to assume that it is and therefore cannot squeeze us for £8 extra. 

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1 minute ago, Billy Jo Jim Bob said:

"Of course if items are from another source then VAT and Import tax (if applicable) will be collected at the door (I assume)"

Yes, that's my point in the question. How do RM know if VAT has been paid or not if the item is coming from an individual seller with no OMP ? I think they have to assume that it is and therefore cannot squeeze us for £8 extra. 

It's going to be very messy and is already leading to lots of goods being refused at the door and returns (got that for our Post Master yesterday)

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On 15/01/2021 at 13:43, Billy Jo Jim Bob said:

If US Ebay sellers are part of the Global Shipping Program its easy for Ebay to collect the tax (they do already). But what if Ebay sellers are not part of the program and do their own shipping....how does that work as they can declare whatever they want ?

I ordered some records from a dealer in the US last week...never mentioned VAT/Tax. But yesterday I order a 45 and got the message that VAT would be charged.

The rules also say that overseas businesses will have to register for collection of the VAT charge. Are small time record dealers going to do that ?

 

So to wrap this up.

I received the record today from dealer who mentioned VAT/Tax on the 45. 

The package was fully declared with value and postage....but no VAT charged either at point of sale or on UK entry and no Fee requested from Royal Mail.

So clearly the US small business is no going to register and it seems UK Customs may assume VAT has been paid ?

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On 12/01/2021 at 23:27, crogger said:

So, I have now purchased two records,from different sellers,since 1/1/21.The first one totalled $140-67,with postage,no vat,the second one was $170-50 plus $34-50 vat. The vat is not only being charged on the purchase cost but on the USA postage cost as well! I used to be registered for vat,a long time ago,then you had to provide an invoice with your vat number displayed and you had to be the seller of the goods.Does this mean that eBay are the sellers and should provide us with a vat number?As boring as all this sounds,things have probably changed since my day and you’d have to imagine thar eBay and HMRC have got together and come up with this.Also what are the ramifications with regard to the actual postage costs? Are you still going to get a relatively expensive record sent for$15? In addition,what happens when the expensive record lands in theUK,will it be subject to more scrutiny? Watch this space! Apologies for sounding like the (Prophet of Doom).

Clive.

Apologies in advance if my update is of no interest,on this well-worn topic,but here goes! I have now received both records ,in question.The one at $175-50+$34-50 vat has GB vat no. Paid as part of my address with no further charges.The one at $140-67 with no vat came from Ohio to the eBay hub in Kentucky.That label was covered by one from DeutschePost which came direct to me; there was a customs(USA,I think) on the back,with full amount declared.There were no extra charges.I have since bought another,cheap,record from the States withe same Vat no. as part of the address.This appears to show that EBay have been registered for Vat in the Uk. What else it proves is a matter of conjecture,your guess is as good as mine.Whoever’s reading this,I hope you managed to get to the end before you fell asleep! 
Clive.

 

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Hello  Record Collector's

You used a label for the return transaction related to Willie Tee I AM NOT HAVING FUN ex+/ex+ #666 We have attached an invoice for the VAT associated to the cost of the label. Please download the label and save it in your records for any tax related purposes.  getting strange  .............tax on soul 

 

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On 28/01/2021 at 07:01, Blackpoolsoul said:

 

 

This is Royal Mail's own words from their website

"What does the Royal Mail handling fee cover?

Our £8 handling fee reflects the cost of clearing items through customs and presenting them to Border Force.

This includes staff costs, storage, administration and handling of the item through Customs. The fee also covers storage and cash handling processes at the Delivery Office."

It sounds very vague and general to me and almost could sound as if they have used the new rules as an excuse to charge a "Willy Nilly" fee

Quote

 

Royal Mail have been charging this fee for years, so it’s not just a recent thing. Now the Post Office has been privatised, they have become another bunch of rip-off scammers. The organisation is now run by bonus-boys who move from firm to firm getting golden handcuffs and handshakes. Ask yourselves, why does the price of a stamp go up so frequently? Want to know why there are so few post offices? Sell them off so the balance sheet looks healthy, and hey presto, up goes the bonus...

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On 30/01/2021 at 18:47, crogger said:

Apologies in advance if my update is of no interest,on this well-worn topic,but here goes! I have now received both records ,in question.The one at $175-50+$34-50 vat has GB vat no. Paid as part of my address with no further charges.The one at $140-67 with no vat came from Ohio to the eBay hub in Kentucky.That label was covered by one from DeutschePost which came direct to me; there was a customs(USA,I think) on the back,with full amount declared.There were no extra charges.I have since bought another,cheap,record from the States withe same Vat no. as part of the address.This appears to show that EBay have been registered for Vat in the Uk. What else it proves is a matter of conjecture,your guess is as good as mine.Whoever’s reading this,I hope you managed to get to the end before you fell asleep! 
Clive.

 

Valid observation Clive. Has anyone else noticed how eBay are now flying planes from hubs in the US into Germany and Switzerland. UK customers will pay overseas shipping rates expecting the US Postal Service to take care of the mail. US packets go to the hub for a local postage rate, then eBay fly the mail across the Atlantic, no doubt making further profits. No wonder eBay are so keen to charge 20% on postage as well as VAT as it’s more money for them. As Clive has pointed out, the relabelling process at the hub involves a different value being put on the ticket, something UK importers might want to think about carefully. All this seems to be independent of the Global Shipping Programme which is another rip-off in itself, and no doubt a failure of sorts that has prompted eBay to implement the the innovation currently under discussion. 

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13 hours ago, Mithras said:

Hello  Record Collector's

You used a label for the return transaction related to Willie Tee I AM NOT HAVING FUN ex+/ex+ #666 We have attached an invoice for the VAT associated to the cost of the label. Please download the label and save it in your records for any tax related purposes.  getting strange  .............tax on soul 

 

Remember those discussions on how prices have gone up and how me and others said how stupid some of the buyers are/were. Seems that the tax man was watching and rubbing his hands. For me its simple don't buy and the tax will stop or..... buy and return

Edited by Blackpoolsoul
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12 hours ago, Frankie Crocker said:

Royal Mail have been charging this fee for years, so it’s not just a recent thing. Now the Post Office has been privatised, they have become another bunch of rip-off scammers. The organisation is now run by bonus-boys who move from firm to firm getting golden handcuffs and handshakes. Ask yourselves, why does the price of a stamp go up so frequently? Want to know why there are so few post offices? Sell them off so the balance sheet looks healthy, and hey presto, up goes the bonus...

That and the fact Royal Mail’s main source of income fir centuries has virtually disappeared, the post.  They will look at all options to make money. 

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On 07/02/2021 at 21:31, Frankie Crocker said:

Valid observation Clive. Has anyone else noticed how eBay are now flying planes from hubs in the US into Germany and Switzerland. UK customers will pay overseas shipping rates expecting the US Postal Service to take care of the mail. US packets go to the hub for a local postage rate, then eBay fly the mail across the Atlantic, no doubt making further profits. No wonder eBay are so keen to charge 20% on postage as well as VAT as it’s more money for them. As Clive has pointed out, the relabelling process at the hub involves a different value being put on the ticket, something UK importers might want to think about carefully. All this seems to be independent of the Global Shipping Programme which is another rip-off in itself, and no doubt a failure of sorts that has prompted eBay to implement the the innovation currently under discussion. 

The VAT rules state that goods + postage = Value, so Ebay are required to include postage in the overall calculation of VAT if they intend to collect it. 

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On 08/02/2021 at 09:22, Chalky said:

That and the fact Royal Mail’s main source of income fir centuries has virtually disappeared, the post.  They will look at all options to make money. 

Not sure about that Chalky. The lads from the local sorting office I know have told me that its been chaotic for sometime with the amount of parcels flowing through. Its all the internet ordering and it doesn't all go through the couriers as RM have lots of contracts in place with the big firms.

Drew

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Got this quote from a UK store who hasn't realised yet that EU tax is after July 2021

This is a quick message mostly for anyone who buys records from us who lives in the EU or in Europe. We have now sent over 100 packets from the UK to the EU since January 1st. As far as we know (and we have asked!) not one has been delivered with any extra charges. We have a good method that ensures fast delivery, accurate customs info (but with low values normally of £4 - £6 per item), so our shipments to EU / EEA countries have ad no or very few issues. I mention this because some of you have asked. My understanding is that our long experience of sending to countries outside the EU in the past has really helped and no one has had any problems. So that is all good news.

Nice that they think it's down to their "long experience"

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On 09/02/2021 at 10:12, Billy Jo Jim Bob said:

The VAT rules state that goods + postage = Value, so Ebay are required to include postage in the overall calculation of VAT if they intend to collect it. 

The rule is an ‘ass’ then... I bet eBay rubbed their hands together... The goods are a physical entity so can be assigned a value. The postal service is an ‘invisible’ of no value once the transfer has taken place. VAT was always a misnamed tax when it was introduced to replace Sales Tax then upped following the Poll Tax Riots; it was not reduced when Council Tax replaced the Rates Tax. 

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Hi

won a record from the states last night and paid vat had already asked seller to send as gift low value just incase i got stung again this end

seller has now got got cold feet and sent me a refund refusing to declare low value

can somebody clarify this for me so it doesnt happen again, if i pay vat on item at ebays end do i pay more tax this end? i dont want to put sellers off by asking to declare as gift if theres no need once ive paid the vat on my winnings

ATB

Floyd

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5 minutes ago, Bocanada said:

Hi @Floyd – VAT you only pay once as far as I know; but you might need to pay handling fees to Royal Mail when the goods enter the UK.

I got something sent from the EU, with a declared low value and I did not have to pay anything. Luck I guess.

Hi thanks for reply, but if youve already paid vat on item and postage you shouldnt need to pay a handling fee as well? if you owe tax and have to pay at post office then i see how you need to pay handling fee, but if these fees have already been paid in advance surely there is no handling fee to pay, can some body clarify this

ATB

Floyd

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