Customs tax question post-brexit

[kozuki]

I would hope, and TBH expect, that if you have to pay VAT on import that PCS would refund you the UK VAT. The process to get that refund and then get it to you may be a long one however because this is all so new.

I do understand your anger here but companies have to follow the tax rules that are in place at the time. When you placed your order nobody knew whether there would be a trade deal nor what the terms were likely to be, so there would have been no way PCS could have advised you of anything. And as I've mentioned, at the time of your order they were under a legal obligation to charge you VAT.

I would suggest you wait and see what happens when it gets to you. If you have to pay VAT on import I would then contact PCS asking for a refund of the UK VAT you've paid (with proof of VAT paid on import of course).

I will try to clarify as much as I can with PCS before the PC is dispatched. In the event that I have to pay VAT again and for example PCS refunds the UK VAT, I would still end up losing money, simply because the import VAT would be higher than UK VAT, like take the PC costs 2500 euros without any VAT, I pay 20% UK VAT, which would be 500eu, so the total price/value of the item that comes up to the customs is 3000eu, then I pay 21% of 3000, which is 630, PCS refund me 500eu, I end up losing 130eu.

 

[ubuysa]

I will try to clarify as much as I can with PCS before the PC is dispatched. In the event that I have to pay VAT again and for example PCS refunds the UK VAT, I would still end up losing money, simply because the import VAT would be higher than UK VAT, like take the PC costs 2500 euros without any VAT, I pay 20% UK VAT, which would be 500eu, so the total price/value of the item that comes up to the customs is 3000eu, then I pay 21% of 3000, which is 630, PCS refund me 500eu, I end up losing 130eu.

I'm afraid that's just a fact of life.

As an example, the courier companies here in Greece stop anything that comes into Greece from outside the EU. They hang onto it for a few days and then contact the recipient asking for Greek VAT (23%) to be paid, which is fair enough, but they then add on their 'processing' fee (which seems to be directly related to the value of the package - which they will open) and a storage fee whilst it's been with them. If I were now to order a £2000 PC from PCS ex-VAT, when it reached Greece the Greek courier company would likely charge me something in excess of €1000 in VAT, fees and storage before they would deliver it....!

 

[Martinr36]

I'm afraid that's just a fact of life.

As an example, the courier companies here in Greece stop anything that comes into Greece from outside the EU. They hang onto it for a few days and then contact the recipient asking for Greek VAT (23%) to be paid, which is fair enough, but they then add on their 'processing' fee (which seems to be directly related to the value of the package - which they will open) and a storage fee whilst it's been with them. If I were now to order a £2000 PC from PCS ex-VAT, when it reached Greece the Greek courier company would likely charge me something in excess of €1000 in VAT, fees and storage before they would deliver it....!

be cheaper for you to come over and pick it up.............

 

[ubuysa]

be cheaper for you to come over and pick it up.............

That will be my plan....

 

[kozuki]

If it eventually comes to having pay VAT and no certainty that customs would be cleared too, I will unfortunately cancel and ask for a refund then re-order from within the EU. I have no time and extra money to lose out like that and quarrel over VAT returns post-delivery. Even if that means having a lesser build and waiting more time. Hopefully PCS has some plan to help this situation from going to this extent

 

[Bhuna50]

be cheaper for you to come over and pick it up.............

Opening yourself up for a bigger fine if you get stopped taking it back through the nothing to declare channel...

Unfortunately, this is not PCS's fault but more the lack of guidance as things have been dealt with regarding Brexit. I am not turning this into a political debate, but basically because no deal was made until the last minute, no one knew exactly what is and would be happening - across ALL industries / businesses.

This is now all new to people and the deal has filtered through with little guidance all round and is causing delays in parcels / deliveries / movement of goods etc throughout whilst it seems to have been left to businesses to work out for themselves what is to be applied or not.

 

[Bhuna50]

Hopefully some helpful links:

Buying goods from outside the European Union (EU) including the UK (revenue.ie)


How to pay your import charges (revenue.ie)

 

[ubuysa]

Opening yourself up for a bigger fine if you get stopped taking it back through the nothing to declare channel...

Unfortunately, this is not PCS's fault but more the lack of guidance as things have been dealt with regarding Brexit. I am not turning this into a political debate, but basically because no deal was made until the last minute, no one knew exactly what is and would be happening - across ALL industries / businesses.

This is now all new to people and the deal has filtered through with little guidance all round and is causing delays in parcels / deliveries / movement of goods etc throughout whilst it seems to have been left to businesses to work out for themselves what is to be applied or not.

A bit OT but that's not what I'd do. Bringing a PCS PC into Greece personally would mean just Greek VAT to pay - saving the couriers company's rip-off charges.

 

[kozuki]

Hopefully some helpful links:

Buying goods from outside the European Union (EU) including the UK (revenue.ie)


How to pay your import charges (revenue.ie)

I am not from Ireland, but yeah, same rules apply all over EU now, you have to pay whatever VAT that the country has on all orders above 22eu value. However, I do not understand why PCS ask for VAT if UK government states that they should not charge any VAT for good that are sent from UK to EU (https://www.gov.uk/guidance/vat-exports-dispatches-and-supplying-goods-abroad#vat-on-exports)

 

[Bhuna50]

Sorry - there as mention of Ireland earlier in the post so assumed it was you.

@ubuysa - apologies - wasnt meant to be OT - was pointing out the issue re VAT confusion is a general topic all around all industries at moment and PCS are probably just as confused as larger firms on it due to such a late Brexit deal etc.

@kozuki - where are you based? It might be that there is an arrangement in place where the UK company charges the tax and shows it as paid on the documentation that will be attached to the courier paperwork and then they forward it on - speak with PCS and see if that is what will be happening?

 

[kozuki]

Sorry - there as mention of Ireland earlier in the post so assumed it was you.

@ubuysa - apologies - wasnt meant to be OT - was pointing out the issue re VAT confusion is a general topic all around all industries at moment and PCS are probably just as confused as larger firms on it due to such a late Brexit deal etc.

@kozuki - where are you based? It might be that there is an arrangement in place where the UK company charges the tax and shows it as paid on the documentation that will be attached to the courier paperwork and then they forward it on - speak with PCS and see if that is what will be happening?

I am in Lithuania. Currently awaiting for an answer from PCS as my machine is still in pre-production. Thing is that the type of company that the order is made through usually doesn't have to pay any VAT even for 3rd country imports in the customs as we are VAT payers here, so we get the exempt for those on purchases (this might clash with some of my messages from before, but I just confirmed that with a colleague).

 

[SpyderTracks]

I am in Lithuania. Currently awaiting for an answer from PCS as my machine is still in pre-production. Thing is that the type of company that the order is made through usually doesn't have to pay any VAT even for 3rd country imports in the customs as we are VAT payers here, so we get the exempt for those on purchases (this might clash with some of my messages from before, but I just confirmed that with a colleague).

Yeah, VAT is only for UK residents.

You would have to pay your own nations tax rate which is what import tax is.

 

[kozuki]

Yeah, VAT is only for UK residents.

You would have to pay your own nations tax rate which is what import tax is.

That was my conclusion too, PCS should not charge VAT as the goods are delivered outside of the country and when it reaches the border here, I would deal with my customs here, which is fine, as long as the value on the PCS package is what I have currently paid in full, the initial order and the amendments summed up, without any VAT added on.

 

[Bhuna50]

So Have you spoken any more with PCS regarding this. Have they actually invoiced you for the VAT?

What exactly did they say to you.


Sent from my iPhone using Tapatalk

 

[kozuki]

So Have you spoken any more with PCS regarding this. Have they actually invoiced you for the VAT?

What exactly did they say to you.


Sent from my iPhone using Tapatalk

Not yet, since they emailed my directly first, I emailed back asking for clarification, so far they did not update anything or sent any response back. They said either they can issue new invoices with VAT included and I would need to pay them directly, or they could "issue new invoices for a VAT exempt order where you pay to the courier when the goods are delivered", which sounded a bit weird, so I wanted to clarify on the 2nd option, what did they mean by VAT exempt order and what would I have to pay the courier. Will update as I get answers

 

[ubuysa]

Not yet, since they emailed my directly first, I emailed back asking for clarification, so far they did not update anything or sent any response back. They said either they can issue new invoices with VAT included and I would need to pay them directly, or they could "issue new invoices for a VAT exempt order where you pay to the courier when the goods are delivered", which sounded a bit weird, so I wanted to clarify on the 2nd option, what did they mean by VAT exempt order and what would I have to pay the courier. Will update as I get answers

I read that as you won't pay UK VAT (the VAT exempt invoice) and the courier will handle the VAT on import to Ireland - which you will have to pay them to take delivery. That's much the same as here in Greece - but hopefully without the rip-off overheads.

 

[Martinr36]

I read that as you won't pay UK VAT (the VAT exempt invoice) and the courier will handle the VAT on import to Ireland - which you will have to pay them to take delivery. That's much the same as here in Greece - but hopefully without the rip-off overheads.

That's how I'm reading it as well

 

[Bhuna50]

Kozuki is in Lithuania, but I believe its the same - zero VAT invoice here but will incur it via shipping at his end.

 

[kozuki]

Yeah I think I get it now that I know more about the general information regarding VAT/imports/etc, but it felt like an incomplete sentence within the email as it was very short and basic with barely any information. Ideally I would prefer that to be the case as I can deal with the VAT here just fine. Hopefully PCS reply soon and they can arrange that for me, and the build will progress soon as well. Thanks to everyone who replied so far. Would be interesting to hear from others who got deliveries post-brexit to EU if anyone else had similar experiences or concerns.

 

[kozuki]

Still no response from PCS, meanwhile a mainland EU competitor confirmed that they have all parts in stock and could only face 1-2 weeks of delay at most, I guess brexit doesn't help PCS's stock levels too