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ProfJames

Tax and duty on instruments when we leave the EU

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What will be the repercussions?  UK prices will increase because of the Tax and duty applicable if you source from the EU.........

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IBTL

No-one knows.... except yes of course prices will increase, plus the pound will be worth nothing. 

On the upside we can fly goods over on the Unicorns we're all getting! 🤪

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We'll just have to buy British - Wal, Overwater, Status, GB, ACG, Jaydee.

Terrible!!

Edited by TheGreek
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Mick - was just about to post the same thing! And obviously there are a bunch of amps (e.g. Ashdown, Laney), cabs (anyone heard of Barefaced?), pedals (e.g. Cog).

...or Japanese, or Indonesian, or god forbid, from the USA! :) 

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big difference is that private purchases from EU countries may attract duty so buy your sought after 2nd hand basses now; even if you don't end up paying duty it's sure to slow things down as the couriers get to grips with it all and they will I am sure err on side of caution so they don't get lumbered with the tax bill.

I bought a bass from Norway a couple of months back and confused EEA and EU and today got a bill for several hundred quid as a result; my fault for not doing due diligence; nice bass though 😀

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Being a Sandberg man I was thinking about the increase for the new purchasers from Germany.  The domino effect will push up prices for any EU based manufacturer.

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The likely collapse in the value of the pound will have more of an effect, IMO.

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Just now, alyctes said:

The likely collapse in the value of the pound will have more of an effect, IMO.

There will be a sharp rebound IMO as trade will pick up with USA, et al.   Economists predict a sharp fall but almost immediate recovery.  The Euro is predicted to weaken as well...........me...I have two balls and neither are crystal... 

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12 minutes ago, alyctes said:

The likely collapse in the value of the pound will have more of an effect, IMO.

Currently £1.30 to $1.00 - what are you predicting it's going to fall to?

And I presume you know better than legions of currency traders who are putting their money on the line and who think that... err £1.30 : $1.00 is the right value? 😉

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You are charged VAT anyway, either from the seller or HMRC when the goods come into the UK.

Thomann (for example) charge you German VAT (as a private UK individual). After 1/1/21 they charge no VAT but HMRC will charge 20% UK VAT + whatever Duty there is when the stuff comes into the UK. Same as any import into the UK (which is what it will become).

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24 minutes ago, ProfJames said:

I have two balls and neither are crystal... 

Me too- but no matter what I say, I can't stop Gyspy women staring at them...

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5 minutes ago, Steve Browning said:

You are charged VAT anyway, either from the seller or HMRC when the goods come into the UK.

Thomann (for example) charge you German VAT (as a private UK individual). After 1/1/21 they charge no VAT but HMRC will charge 20% UK VAT + whatever Duty there is when the stuff comes into the UK. Same as any import into the UK (which is what it will become).

Italian VAT rates are going up to 26.5% in 2021. We will have UK VAT rates of 20% instead from 1 Jan. Looks like Markbass gear is going to get cheaper 😊

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7 minutes ago, Steve Browning said:

You are charged VAT anyway, either from the seller or HMRC when the goods come into the UK.

Thomann (for example) charge you German VAT (as a private UK individual). After 1/1/21 they charge no VAT but HMRC will charge 20% UK VAT + whatever Duty there is when the stuff comes into the UK. Same as any import into the UK (which is what it will become).

I hope you are right and that this will be indeed the case (i.e. no German or any other EU country's VAT, only UK VAT and import duties). Depending on where from the EU you then buy from, you could actually safe money as several EU countries have higher VAT:

https://taxfoundation.org/vat-rates-europe-2019

However, I am concerned we may end up having to pay BOTH EU's and UK's VAT (plus import duty). 

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There may well be confusion on movement of goods when passing through different VAT rated countries............ 

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2 hours ago, Al Krow said:

Currently £1.30 to $1.00 - what are you predicting it's going to fall to?

And I presume you know better than legions of currency traders who are putting their money on the line and who think that... err £1.30 : $1.00 is the right value? 😉

I think it's the other way round, isn't it?  So far, anyway.

I've no idea how far it will fall, after the end of 2020.  But that has no bearing on whether it will fall or not.  Which said, my best guess is parity or a bit worse, maybe 90 cents to the pound, in about June; things should be more stable by then.

All those currency traders are trading at that price now, and they will adjust their pricings as time goes on.  As they do, all the time; because that is how they make their money.  What they trade at now has no bearing on the price in January.

Edited by alyctes
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5 hours ago, TheGreek said:

We'll just have to buy British - Wal, Overwater, Status, GB, ACG, Jaydee.

Terrible!!

We will need to!!! It works the same way for manufacturers as their product will increase in price in the EU (and anywhere the currency bombs), making exports less competitive and more difficult. 

I guess this is just one of the prices to pay for becoming 'a proud and strong independent nation like we always were'......😁

No doubt there are advantages, but I have yet to hear any that will impact me personally - buying bass gear will almost certainly become more expensive for makes from the EU. 

Edited by drTStingray

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1 hour ago, alyctes said:

I think it's the other way round, isn't it?  So far, anyway.

I've no idea how far it will fall, after the end of 2020.  But that has no bearing on whether it will fall or not.  Which said, my best guess is parity or a bit worse, maybe 90 cents to the pound, in about June; things should be more stable by then.

All those currency traders are trading at that price now, and they will adjust their pricings as time goes on.  As they do, all the time; because that is how they make their money.  What they trade at now has no bearing on the price in January.

"Short" sterling by buying buy $ if you believe that. It's a simple currency hedge. You stand to make a 30% return in 8 months if you are correct - go on back yourself 😉

Edited by Al Krow

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It's gonna be awesome. Anything that floats the boat of the present Cabinet (they cannot possibly be there for any other reason) is fine by me. How hard can it be to refloat an empire? 

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2 hours ago, Jus Lukin said:

Me too- but no matter what I say, I can't stop Gyspy women staring at them...

I actually had a gypsy beggar offer me money ... true story 

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6 hours ago, Al Krow said:

...or Japanese, or Indonesian, or god forbid, from the USA! :) 

Japanese and US, are the same yes, but not Indonesia, they have a free trade deal with the EU which we lose. 

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On the plus side, you get the opportunity to appreciate the things you have, learn new skills, and bring back old ones like sock darning, picking vegetables and candlemaking!

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10 hours ago, Steve Browning said:

You are charged VAT anyway, either from the seller or HMRC when the goods come into the UK.

Thomann (for example) charge you German VAT (as a private UK individual). After 1/1/21 they charge no VAT but HMRC will charge 20% UK VAT + whatever Duty there is when the stuff comes into the UK. Same as any import into the UK (which is what it will become).

Thomann charge you, as a private UK individual, the UK VAT rate. EU law states that VAT is charged at the rate of the country the customer is resident in.

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8 hours ago, Geek99 said:

I actually had a gypsy beggar offer me money ... true story 

It was a warm day - daughter in bugggy in Mac Donald’s - shed taken her socks off. Beggar approached and held out hand, I pointed at daughters feet. 
beggar held out a fiver ... 

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50 minutes ago, Doctor J said:

Thomann charge you, as a private UK individual, the UK VAT rate. EU law states that VAT is charged at the rate of the country the customer is resident in.

Not exactly, Thomann (poor example) will have exceeded the distance selling threshold and are VAT registered in the UK I suspect. VAT is charged according to the place of supply rules and is where the supplier is established, unless selling to a taxable person in the country of destination.

Either way, you are definitely only charged VAT once. Duty rates can be around the 4-5% mark and VAT is calculated on the value of the goods, the Duty and transport costs so the goods will be more expensive (depending on the rate). 

Edited by Steve Browning

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