Beware, EU purchases. Tax and handling fees

[Kneerly Down]

No-one grows chocolate!

Also, say, if he is importing his drinking chocolate from a MFN nation (excuse the tautology), as part of the EU we had to impose 8.30 % + EA MAX 18.70 % +ADSZ, in accordance with the Meursing table.
It is now a lower, and much less complicated 8%.
The UK's global tariff is simpler and lower than the one we had as part of the EU.
We removed the 'inconvenience' tariffs that were lower than 2% (IIRC) and simplified others, reducing the average tariff with the rest of the world by about a sixth of what it was as part of the EU.

[Kneerly Down]

Well technically I did know, but I doubt Reading Uni is producing much.

He still has an unconditional place for a Food Science degree at Reading Uni, but they said he's already doing what they'd look for their graduates to do, so why pay the money and spend the time....in so many words.

[Horse]

... using movement of its chocolates in bulk outside the UK then sending them back for individual deliveries, reducing the effective VAT charge, that was then being paid outside the UK and giving them a competitive advantage

That's an indictment of the UK's tax system if a company could profit from an export then import system that costs the exchequer.

[Asian Boss]

To be fair to fisherman, they do work hard.

Some lads graft hard, some lads sell nosey...

[Kneerly Down]

That's an indictment of the UK's tax system if a company could profit from an export then import system that costs the exchequer.

It was an indictment of the EU tax regime as it was the mandated EU system that allowed such a scheme to operate.

[Horse]

That's an indictment of the UK's tax system if a company could profit from an export then import system that costs the exchequer.

It was an indictment of the EU tax regime as it was the mandated EU system that allowed such a scheme to operate.

Presumably, if it was an EU-wide system, manufacturers in other countries did exactly the same?

[CarlBarth]

I bought a Wahoo kickr direct. Delivered today with no extra cost. Was stuck at Stanstead for a while waiting to clear customs. I have been waiting 3 weeks for a delivery from Jack Wolfskin who are a German company. Lots of delays at the moment.

[Wreckless Rat]

I have some raw uncut opals stuck in customs

[Cousin Jack]

I voted Brexit, but even I expected some short-term pain for long-term gain.

Two weeks is not long enough to judge.

[Horse]

I have some raw uncut opals stuck in customs

What, is the mule under guard while they wait for them to pass through?

[Kneerly Down]

Presumably, if it was an EU-wide system, manufacturers in other countries did exactly the same?

If you are a high volume manufacturer selling relatively inexpensive items (like boxes of chocs), yes, you could.
As it was, as a small manufacturer, my son's business was at a competitive disadvantage.
As part of the EU the UK couldn't close it down.

The UK having pretty competitively priced bulk mail/parcel delivery probably helped the big boys also.

[slowsider]

Presumably, if it was an EU-wide system, manufacturers in other countries did exactly the same?

If you are a high volume manufacturer selling relatively inexpensive items (like boxes of chocs), yes, you could.
As it was, as a small manufacturer, my son's business was at a competitive disadvantage.
As part of the EU the UK couldn't close it down.

The UK having pretty competitively priced bulk mail/parcel delivery probably helped the big boys also.

Damn the EU that consumers chose the cheaper alternative?
And the supplier who moved, could they have established in UK regardless of brexit?

[Kneerly Down]

Damn the EU that consumers chose the cheaper alternative?

I don't blame consumers for choosing the best value, but when that 'value' is established by the ability of a multinational to avoid charging VAT that the smaller domestic firm has to charge, that is not a good thing for the country. Sending food on a >1000 mile journey for the purpose of avoiding VAT isn't great for the environment either.

And the supplier who moved, could they have established in UK regardless of brexit?

Maybe they would have, but they wouldn't, without Brexit, have been able to import raw ingredients into the UK at the new, lower, tariffs.
Maybe all bad things are because of Brexit and all good things are despite Brexit?

[slowsider]

Damn the EU that consumers chose the cheaper alternative?

I don't blame consumers for choosing the best value, but when that 'value' is established by the ability of a multinational to avoid charging VAT that the smaller domestic firm has to charge, that is not a good thing for the country. Sending food on a >1000 mile journey for the purpose of avoiding VAT isn't great for the environment either.

And the supplier who moved, could they have established in UK regardless of brexit?

Maybe they would have, but they wouldn't, without Brexit, have been able to import raw ingredients into the UK at the new, lower, tariffs.
Maybe all bad things are because of Brexit and all good things are despite Brexit?

The member states set VAT rate. EU only establishes a base. Economies of scale are alwsys going to impact the small guy.

[Kneerly Down]

This isn't about economies of scale. It is about tax avoidance, that has been closed as a result if Brexit.

[Horse]

This isn't about economies of scale. It is about tax avoidance, that has been closed as a result if Brexit.

Didn't you say it was just being paid elsewhere, rather than in the UK? That's not avoidance. Paying less tax in a legal manner sounds like good business sense.

Presumably that company's product is now more expensive as a result?

[cheb]

It reads to me like they were using a loophole to good effect. Whether that is a good or a bad thing depends on whether you like the entity that doing it.

[slowsider]

This isn't about economies of scale. It is about tax avoidance, that has been closed as a result if Brexit.

Make your mind up

One of his larger competitors

If you are a high volume manufacturer...

The UK having pretty competitively priced bulk mail/parcel delivery probably helped the big boys also.

I don't blame consumers for choosing the best value, but when that 'value' is established by the ability of a multinational to avoid charging VAT that the smaller domestic firm has to charge, that is not a good thing for the country.

[Wreckless Rat]

It reads to me like they were using a loophole to good effect. Whether that is a good or a bad thing depends on whether you like the entity that doing it.

It's a bad thing if Apple, Costa, MP, hedge fund manager does it.
It's a good thing if it means your black magic are cheaper.

I think...

[Mussels]

It reads to me like they were using a loophole to good effect. Whether that is a good or a bad thing depends on whether you like the entity that doing it.

It sounds like companies here now have a good loophole, they can import raw materials at a lower tax rate and then sell to the EU without extra tax.