So we have all enjoyed the odd bargain direct from China, Tax free! But come the 1st January 2021 here in the UK things are about to change.
A few people are thinking that small purchases won't be affected. Sorry, they will. The £15 VAT-free limit is being abolished. Even if you only want a £1 rubber glass hammer along with a matching left-handed spanner, the firm will have to register and pay the tax up front.
The only saving grace is that private sales between individuals, and gifts, will still be tax-free up to £39.
With goods sold via on-line marketplaces like ebay, Amazon etc, the onus will be on the marketplace, not the individual trader, to register for VAT.. Whatever, it's the consumer that will suffer.
Link to official HMG website: HMRC
This is how I understand the rules so far:
Tax on everything!
But it's ebay and Amazon that collects it. No more stupid Royal Mail tickets through the door.
One bonus is that VAT wont be levied on shipping etc, only the value of goods.
Paying 20% VAT on nowt all, is nearly nowt, so it's not really a big deal for us ebayers. For example 100 1N4148's for a Quid is only going to cost you 20p more, is that really going to break the bank?
But the likes of AliExpress might be screwed if they don't wanna register a UK VAT number? Maybe they will find another route in through the back door?
Individual traders may suffer selling to the UK, unless they opt to sell via ebay which saves them registering.
But prices to us all still go up.
Mixed bag really.
Glad I've stockpiled a few bits.