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Re: Beware, EU purchases. Tax and handling fees
Posted: Mon Jan 18, 2021 8:56 pm
by 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.
Re: Beware, EU purchases. Tax and handling fees
Posted: Mon Jan 18, 2021 9:00 pm
by Kneerly Down
Mr. Dazzle wrote: Mon Jan 18, 2021 8:49 pmWell 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.
Re: Beware, EU purchases. Tax and handling fees
Posted: Mon Jan 18, 2021 9:04 pm
by Horse
Kneerly Down wrote: Mon Jan 18, 2021 7:21 pm
... 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.
Re: Beware, EU purchases. Tax and handling fees
Posted: Mon Jan 18, 2021 9:37 pm
by Asian Boss
To be fair to fisherman, they do work hard.
Some lads graft hard, some lads sell nosey...
Re: Beware, EU purchases. Tax and handling fees
Posted: Mon Jan 18, 2021 10:01 pm
by Kneerly Down
Horse wrote: Mon Jan 18, 2021 9:04 pmThat'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.
Re: Beware, EU purchases. Tax and handling fees
Posted: Mon Jan 18, 2021 10:10 pm
by Horse
Kneerly Down wrote: Mon Jan 18, 2021 10:01 pm
Horse wrote: Mon Jan 18, 2021 9:04 pmThat'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?
Re: Beware, EU purchases. Tax and handling fees
Posted: Mon Jan 18, 2021 10:17 pm
by 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.
Re: Beware, EU purchases. Tax and handling fees
Posted: Mon Jan 18, 2021 10:34 pm
by Wreckless Rat
I have some raw uncut opals stuck in customs
Re: Beware, EU purchases. Tax and handling fees
Posted: Mon Jan 18, 2021 10:38 pm
by 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.
Re: Beware, EU purchases. Tax and handling fees
Posted: Mon Jan 18, 2021 10:38 pm
by Horse
Wreckless Rat wrote: Mon Jan 18, 2021 10:34 pm
I have some raw uncut opals stuck in customs
What, is the mule under guard while they wait for them to pass through?
Re: Beware, EU purchases. Tax and handling fees
Posted: Mon Jan 18, 2021 10:39 pm
by Kneerly Down
Horse wrote: Mon Jan 18, 2021 10:10 pmPresumably, 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.
Re: Beware, EU purchases. Tax and handling fees
Posted: Tue Jan 19, 2021 8:53 am
by slowsider
Kneerly Down wrote: Mon Jan 18, 2021 10:39 pm
Horse wrote: Mon Jan 18, 2021 10:10 pmPresumably, 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?
Re: Beware, EU purchases. Tax and handling fees
Posted: Tue Jan 19, 2021 9:33 am
by Kneerly Down
slowsider wrote: Tue Jan 19, 2021 8:53 amDamn 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.
slowsider wrote: Tue Jan 19, 2021 8:53 amAnd 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?
Re: Beware, EU purchases. Tax and handling fees
Posted: Tue Jan 19, 2021 12:11 pm
by slowsider
Kneerly Down wrote: Tue Jan 19, 2021 9:33 am
slowsider wrote: Tue Jan 19, 2021 8:53 amDamn 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.
slowsider wrote: Tue Jan 19, 2021 8:53 amAnd 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.
Re: Beware, EU purchases. Tax and handling fees
Posted: Tue Jan 19, 2021 11:56 pm
by Kneerly Down
This isn't about economies of scale. It is about tax avoidance, that has been closed as a result if Brexit.
Re: Beware, EU purchases. Tax and handling fees
Posted: Wed Jan 20, 2021 7:49 am
by Horse
Kneerly Down wrote: Tue Jan 19, 2021 11:56 pm
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?
Re: Beware, EU purchases. Tax and handling fees
Posted: Wed Jan 20, 2021 8:27 am
by 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.
Re: Beware, EU purchases. Tax and handling fees
Posted: Wed Jan 20, 2021 8:30 am
by slowsider
Kneerly Down wrote: Tue Jan 19, 2021 11:56 pm
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
Kneerly Down wrote: Mon Jan 18, 2021 7:21 pm
One of his
larger competitors
Kneerly Down wrote: Mon Jan 18, 2021 10:39 pm
If you are a
high volume manufacturer...
The UK having pretty competitively priced bulk mail/parcel delivery probably helped the
big boys also.
Kneerly Down wrote: Tue Jan 19, 2021 9:33 am
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.
Re: Beware, EU purchases. Tax and handling fees
Posted: Wed Jan 20, 2021 10:38 am
by Wreckless Rat
cheb wrote: Wed Jan 20, 2021 8:27 am
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...
Re: Beware, EU purchases. Tax and handling fees
Posted: Wed Jan 20, 2021 10:44 am
by Mussels
cheb wrote: Wed Jan 20, 2021 8:27 am
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.