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[Tug Fanatic]

I understand that Banggood & Ali Express now charge VAT but the only references that I can find on their site are to EU. As I know our system is different (& much harder to comply with) what experience do you have of using them in the past 12 months?

For a low value order a carrier handling fee would be a killer.

[Umi_Ryuzuki]

After Brexit, UK customs, put forth a requirement that any and all
online market places would be required to collect VAT for the Crown.
The retailer would have to create a UK tax account, collect VAT, and the sendthe collected VAT every year/quarter.

I know a few US retailers stopped shipping to the UK when this went into effect 2021.
They felt they should not have to collect or pay tax without representation. Some suggested a "Tea Party".
Later, the EU implemented a similar requirement. As I recall both set a low value to sales around £22.
 
Essentially, any overseas online market place must collect VAT according to UK or EU regulations.It isn't their own policy.

https://www.gov.uk/register-for-vat

[Tug Fanatic]

Umi

I hear what you are saying but I still have the question.

I am not sure if Ali Express, in particular, is one business or a store front for lots of business like ebay. If it is one shop then I expect they comply with VAT regulations but if it is a storefront then I have doubts about a lot of small Chinese businesses doing the same.

What is the £22? I know the basic regulations apply up to £150 product/service value but I know nothing of the £22. Before this system orders under £15 (I think) were exempt but that has gone as I understand it.

I didn't know that the EU had started doing the same thing.

[Umi_Ryuzuki]

I see what you're saying, I imagine that the markets are just that a bunch of small businesses
selling via a larger website. In that case, It may be that the VAT is worked into their cart/checkout
system, and taken care of by Bangood/Ali-express.

When all this first came up for vendors, it seemed like there were exemptions, or that if it was below
a certain retail price, then UK Customs or the post office would collect VAT on collection/delivery.

However, with the implementation of the vendor collected system, any vendor making sales would
have to register, collect and remit the VAT for the Government. And I seem to recall that this lower
limit for vendor sales was something like £22. Which is why several US vendors I know stopped
shipping overseas. They didn't want to work for the UK, or EU government doing VAT collection.

[barriew]

The Banggood UK website gives prices in sterling and state 'Including VAT'.


Not tried it though

Barrie

[Fastelectrics]

I have always kept my purchases below £15 to avoid additional charges on delivery. As the purchase price now includes VAT does this mean that I can safely purchase more expensive items without having extra charges imposed by HMRC?

[Taranis]

I bought my radio from Banggood and they charged VAT. The item was shipped by a seller in Saudi.
On arrival to UK I was charged duty and VAT again.
I would not trust Banggood even though they have a recognised UK VAT number. The actual seller/shipper places no recognisable documentation on the package to show VAT has been paid.


After lots of messaging with Banggood I did get the VAT refunded but not the duty. I imagine many victims won't be as successful.


You can read the tale here
https://www.modelboatmayhem.co.uk/forum/index.php/topic,67180.msg725177.html#msg725177

[Tug Fanatic]

Banggood sounds to be a bit of a lottery.

What of AliExpress and all those despatched from China items on ebay?

[Taranis]

https://www.modelboatmayhem.co.uk/forum/index.php/topic,67180.msg725595.html#msg725595


I've ordered small parts from eBay China this year and so far non have incurred extra costs.
However if the same item is available from eBay Chinese UK based seller I'll pay extra to remove any risk and its faster.

[Tug Fanatic]

https://www.modelboatmayhem.co.uk/forum/index.php/topic,67180.msg725595.html#msg725595


I've ordered small parts from eBay China this year and so far non have incurred extra costs.
However if the same item is available from eBay Chinese UK based seller I'll pay extra to remove any risk and its faster.

I wonder if this is where Umis's £22?) fits in.

[Taranis]

I think eBay collect VAT in most cases even from China and paclink shipping seems to be used

[Taranis]

I've just bought 12 litres of Soberano brandy direct from Spain. The seller charges 21% VAT which I presume they give what is required to HMRC. This cleared customs within Spain and was delivered by UPS with no extra charges so at least Europe is getting their act together as business is business. 


For anyone seeking similar
https://www.aporvino.com/en/search?controller=search&orderby=position&orderway=desc&search_query=brandy