Skip to main Brexit - the UK is leaving the EU
The UK has now left the EU, and the transition period for leaving had finished. January 2021 has seen much disruption and confusion, after the introduction of new customs procedures at the border. The UK and the EU have made a trading agreement, which allows us to continue trading on different terms. We would like to reassure all our customers in Europe that we are doing everything we can to ensure we can continue to supply you in the future as smoothly as possible.
Due to the additional customs procedures required, there will be increased costs for shipping to the EU, we will try to absorb these increases as much as possible, but it will change the way we are able to operate, and there will be an impact on smaller orders - which in many cases will no longer be cost effective.
VAT on Sales - From 1 January 2021 VAT will no longer be charged on goods sold from the UK to the EU. Our invoices will be zero rated for VAT, but VAT is still applicable on goods imported to the EU from the UK. The VAT rate you will need to pay will usuallybe determined by the VAT rate in your country: Austria 20%, Belgium 21%, Czechia 21%, Denmark 25%, Estonia 20%, Finland 24%, France 20%, Germany 19%, Greece 24%, Hungary 27%, Ireland 23%, Italy 22%, Latvia 21%, Netherlands 21%, Poland 23%, Slovakia 20%, Slovenia 22%, Spain 21%, Sweden 25% - the VAT payable can vary depending on the courier's procedures. For example, DPD will do the customs clearance for Germany a their hub in Netherlands, and charge 21% VAT, but DHL will make the customs clearance in Germany, and charge 19% VAT. We are updating our systems to allow for these changes.
B2C (Business to Consumer) sales - includes private individuals and any other customers without a VAT Number. We have implemented new procedures, which allows us to quote you prices including VAT and any duties that are due. We will collect any VAT due when you place your order in our webshop, and the VAT Rate will be adjusted according to your country, or the clearing hub we expect to use for your shipment. We will then pre-pay the VAT to the shipping company, to allow them to deliver your order without any additional delays or problems. Due to the way any VAT or duty is processed, once it has been paid to the customs authorities, it is not possible to recover any VAT paid. If you change your mind after goods are delivered and you need to return them, any VAT, duty or customs administraion fees can not be refunded. In some cases, we may not be able to accept unwanted returned goods, as the handling costs would be too high. Please double check to ensure you have ordered the correct items before you confirm your order.
B2B (Business to Business) sales - for business customers with a VAT Number - most VAT registered businesses will already have an EORI Number connected to their VAT Number, this is used for imports and exports outside the EU. If you do not already have an EORI number you should get one as soon as possible, as this will allow you to continue receiving goods from the UK with fewer complications. Up until 31st December 2020, sales between the UK and other European countries have been operating under the Reverse Charge on EU VAT system, which allows Intra-EU transaction to be zero rated, and the business only has to account for the VAT due in the VAT accounting declarations, no VAT has to be paid at the time of sale. From 1st January 2020, this system will no longer apply. Orders placed and delivered after 1st January will require the recipient of goods in the EU to pay the VAT due before the goods can be delivered, the exact procedures for this can vary, but normally you would pay this to the transport company that delivers the goods, as they will act as your customs representative. They will provide you with an invoice, which you can use to claim back the VAT in the normal way in your accounting processes. If you are not familiar with this process, you may need to consult your accountant, or an import/export specialist to assist you. In most cases this is a straight forward procedure.
Will there be any other costs? Due to the extra handling and administrative costs, shipping companies are increasing prices for delivery to Europe, where possible we will absorb these extra costs, but this may not be possible on low value orders. We expect to have to apply shipping cost increases to orders under £100 (€110) - and in some cases we may have to implement a minimum order value for shipments to the EU.
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