Quote:
Originally Posted by slick_mick
What does this mean?
" As I mentioned in another thread, the new VAT regulations have no minimum value and require the sender to collect and remit on anything valued between £0.01 and £135."
Does the UK government require overseas senders to collect and pay the UK government VAT for items sent to the UK? If so that's utterly preposterous.
Mick
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Yes, and as mentioned they did away with the previous threshold where there was no VAT on items valued less than £15. I've sent plenty of packages to the UK both under and over that amount. Whether it's been on eBay or through the Forum, the recipients have always understood that HMRC
may impose VAT, in which case they would collect from the recipient. Now the burden is on the seller, who must register with HMRC and remit the collected VAT quarterly. However, when I looked into doing this I learned that I can not simply register as a US citizen or business. Rather, I am required to have a UK business as my agent, typically an accounting firm. The cheapest rates I found were £79 per quarter.
The other options are to use online selling platforms (eBay, Amazon, Etsy, etc.) who are already allowed to collect and remit taxes on your behalf, or to limit UK purchases to orders exceeding £135, in which case the VAT is collected from the recipient.