Importing parts from Europe - brave new world

Campaigning for Dave said

chortle said

Having the same debate with a mate today.
I’ve just bought some gear from my supplier in Germany and he didn’t charge VAT which is 19% in Germany.
Only thing he added was postage.
When the stuff got here I was hit with import VAT and a £12.00 handling admin charge.
Parcel force state that they act as tax agents and pay on your behalf any tax or duty owed to the government.
You then have to repay Parcel force before they will deliver your goods.
I’ve yet to sit down and work out what the VAT rate is.
I’d of thought it’d be the rate from the country of purchase and not the arrival.
My understanding is that no VAT should be charged from the source country as the end user isn’t there.
But should be paid in the destination country.
So if that’s the case we pay 20% instead of Germany 19% rate and add the handling fees.
The EU sets VAT at between 15 and 25%.
But it’s up to the members satiate to set their own.
If they want to set above the 25% limit then they need permission from Brussels.
Ironically VAT was introduced as taxation levy equivalence when joining the EU.
So in theory being as we are out VAT should be scrapped.


Sent from my iPhone using Tapatalk

 Really interesting that it seems to be catching up. When I purchased a few bits of stainless from a well known exhaust manufacturer I questioned them on the VAT that I was being charged at the time of purchase as in theory I could have been charged upon arrival too. I wasn't charged this end so didn't worry but if I had been charged I'd have paid 20% on the original price in country plus a further 20% on the ongoing total that could have totalled over 40% of the base price of the item. I.e. if the product cost £20+20%VAT I would pay £24 to the European supplier. When it lands in the UK I could again be hit by 20% plus handling fee. Not sure if I'd pay 20% on the running total or 20% of the original base price minus the selling counties VAT? Anybody's head spinning yet? 

Carl Jones said

Had similar experience with UPS be careful with phoning them, cost me another £11 in phone charges.