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

 

[yeslek]

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.

IF we ever actually leave....

would like brexit to work in our favour and for us to be exempt from this