European Commission proposes to remove import VAT exemptions

[Slinchafi]

Wasn't sure where to post this, would probably fit more in the general discussion or retailer zone, but as it impacts so many of us, I figured I could just post it here. Mods feel fre to move if it doesn't belong here.

So I just read the news that the EU commission is planning to remove import VAT exemption for purchases outside EU, meaning that instead of only packages above a certain value (22€ in most places) getting hit by tax, all packages will be taxed from now on. A huge bummer if/when this ends up happening.

Action against VAT fraud from outside the EU: Small consignments imported into the EU that are worth less than €22 are currently exempt from VAT. With around 150 million parcels imported free of VAT into the EU each year, this system is open to massive fraud and abuse, creating major distortions against EU business. Firstly, EU businesses are put at a clear disadvantage since unlike their non-EU competitors, they are liable to apply VAT from the first eurocent sold. Secondly, imported high-value goods such as smartphones and tablets are consistently undervalued or wrongly described in the importation paperwork in order to benefit from this VAT exemption. The Commission has therefore decided to remove this exemption.

http://europa.eu/rapid/press-release_IP-16-4010_en.htm

 

[Sigill]

Moved to chat/ support section.

 

[dfoles]

Just trying to make sure I understand, so this would be for EU people ordering stuff from outside the EU getting hit with VAT tax, or is this for people outside the EU (like a US citizen ordering from Zavvi) getting hit with VAT tax?

 

[icharlie17]

I'd definitely buy way less steels if that ends up happening

 

[Slinchafi]

Just trying to make sure I understand, so this would be for EU people ordering stuff from outside the EU getting hit with VAT tax, or is this for people outside the EU (like a US citizen ordering from Zavvi) getting hit with VAT tax?

This is for EU folks importing from non-EU countries. Now we had to pay 20-25% (+ around 10€ per package for processing) on every package with value above 22€, this makes it so that we have to pay those fees on every single package, even if it's a $1 keychain from china. Obviously the 22% tax won't make much of a difference on a $1 package, but the 10€ processing fees certainly will. Of course, details are still unknown, but this is the most likely scenario.

 

[Sigill]

Just trying to make sure I understand, so this would be for EU people ordering stuff from outside the EU getting hit with VAT tax, or is this for people outside the EU (like a US citizen ordering from Zavvi) getting hit with VAT tax?

It sounds like it's importing into the EU. If this does happen it won't be good. It would be too expensive to keep importing if you have to pay customs on top of every purchase.

 

[dfoles]

That sucks for you guys.

 

[nafosb]

Time to take those EU bureaucrats on a flyover of the nearest ocean and dump them in the drink so the sharks have a reason to party.

 

[Jeek]

good news for filmarena. people inside the EU will import less Asian Steels and buy more FAC instead

 

[BluSteel2012]

Guys this is serious sh1t! This is going to be a real game changer. There's going to be no joy left in this hobby at all only fees and taxes

After 2021, all goods bought online by EU consumers from sellers outside the EU will also be subject to VAT, in line with current EU sales practices. While there may be a decrease in sales from outside the EU as a result of a more level playing-field in this market segment, trustworthy sellers from outside the EU should welcome the measures since it brings certainty over final pricing to their EU customers. Currently, a significant number of parcels are refused once they arrive in the EU by consumers as they are faced with additional VAT and clearance fees from postal or courier operators.

 

[luke98]

Time to move into the U.S.

Spoiler

 

[nafosb]

Time to move into the U.S.

Spoiler

The Orange one will not welcome you here.

 

[garabe]

I love this whole argument of you've put a local business / whoever out of pocket so here's some tax thing because the UK has Mondo and the other big galleries producing the art here isn't it we just choose to spend more money getting it from America. If more companies here offer a quality product then I'm likely to get that - so if I was buying I dunno Levi jeans I could get here then yeah fine. If I was buying Snowpiercer on blu ray (in any format) oh wait nobody saw fit to release that ever in the UK. Who exactly am I depriving here? Think the EU is bad, just wait to see what drops of scraps we're left with in the UK... Been hit by import tax twice this month - £8 processing fees each time. Get to F***

 

[snooloui]

It wouldn't be so bad if it was only the VAT but the processing fees that couriers insist on charging are ridiculous and are often higher than the tax collected. I assume those fees will be scrapped but if not it will be a complete farce.

 

[IRON MAN]

Reminder, please keep politics outside of these forums. Thanks.

 

[JackRegan]

Ths won't happen because it would have to be carried by a majority vote; and the majority won't vote for it.

 

[HUBMUSWELL]

UK will adopt this even after BREXIT...Nice way of getting extra £££

 

[dan8885]

That's really a let down if this ever will happen.

What I still don't understand is why some countries don't need to pay the tax in other countries and some must. I read here a lot that when EU ninjas order at like Amazon US they get the tax reduced in the checkout process. Or when US ninjas order over here in the EU, the same. I don't understand why this is different within the EU.

 

[yeslek]

UK will adopt this even after BREXIT...Nice way of getting extra £££

though I expect your right, it would be nice if the UK were NOT affected and we gained retention of this via Brexit

 

[HUBMUSWELL]

though I expect your right, it would be nice if the UK were NOT affected and we gained retention of this via Brexit

After Brexit, in simple terms, all EU laws will be retained. However, each law will be studied and modified or removed to be brought under "UK" law.