EU VAT After BREXIT

Simon_Westwood
Excursionist
36 1 4

Can anyone put into clear and simple English now that we have left the EU do we charge EU members VAT?

Should be a simple and straight forward questions, but am I missing too many brain cells to understand this.

Shopify has now removed all VAT from the EU countries that I have already shipped too.  Like one today to Dublin 0 taxes.

Contacting other retailers doing the same online parts selling as me some say charge it others say don't.

UPS say don't charge it but as others may have found out UPS before Christmas wouldn't take any parcels that were bound through Dover/Calais.  Now I have to do new labels with the price of each item listed on a commercial invoice so the customers pay import duties on goods they have already paid for.

Sorry but WTF government this deal is so grey its the new black!

0 Likes
Ed_Miles
New Member
3 0 0

The answer isn't exactly yes or no. Basically it depends on how you choose to ship your products DDP (delivery duty paid), DDU/DAP (delivered at place). I have written a full guide on this, hopefully in plain English that you can download here https://brexit.bezos.ai, The flowcharts are going to be what you want to look at and should be easy to understand. If you have any other questions let me know. Also it's worth noting, after July 1st the EU rules will change slightly.

0 Likes
Temi18
Tourist
12 0 0

I am VAT registered, if I wish to not use the new IOSS system and instead continue continue using DDU/DAP. Would I still need a EORI number to be able to ship to EU customers? 

I've had a look at the your guide and I am still a tad confused.

0 Likes
Simon_Westwood
Excursionist
36 1 4

Hi,

Yes for sure you will need a EORI number.  Customs checks are getting harder as they require more numbers and declarations from one week to the next.  We have not gone down the IOSS route and continue to not charge VAT on any non UK sales.  No one can give a clear yes or no as to if this is OK.  My courier UPS ask for this number or give the option to declare the goods are over €150, or going to a business.  They don't give an option to say VAT not collected.  Its all still a mess and as this has created a lot of new jobs for people to just push papers around I can't see anything changing.  Only getting worse.

0 Likes
Temi18
Tourist
12 0 0

This is honestly so crazy, I'm trying so hard to get my head around everything.

I am also thinking of not charging vat for EU customers, but customers must cover their own custom taxes and duties on arrival. But I am worried I would be hit with a random bill later requesting for me to pay EU vat fees.

0 Likes
Simon_Westwood
Excursionist
36 1 4

I was and am only slightly worried about the same thing.  But as I see it, unless you give an IOSS number there is nothing or no one (us) to be billed for VAT.  Customers may get the hump on that they are still getting charged duties when the get the goods.  The only way I could work charging VAT and having an IOSS number is to employ a broker to do the customer clearances and VAT return which is separate from a normal VAT return, and a web designer to allow shopify to charge VAT below €150.  I have been quoted £800 to employ a broker per year and rate for returns change according to how much work they do.  As a small business these extra over heads would kill me.  I would be better cancelling any order below €150 and carrying on as normal.

0 Likes
Temi18
Tourist
12 0 0

oh wow, yes I agree extra £800 overhead for a small business is way too much.

0 Likes