UK losing millions in VAT

[del1977]

"Customs officers are aware that some overseas sellers are under-declaring the value of goods shipped to the UK and other European destinations in order to qualify for VAT exemptions on low-value packages...

Growing numbers of businesses from China are using Chinese-run warehouses in UK port cities as staging posts, allowing them to offer eBay and Amazon shoppers rapid delivery as well as competitive prices."


Full article: -> http://www.theguardian.com/business/2015/nov/01/uk-losing-millions-vat-non-eu-sellers-amazon-ebay


That'll include all those mods and stuff being delivered from FastTech.


I expect this loophole will be closed in due course.

 

[9668harry]

If they didn't financially cripple manufacturing and enterprise in this county in the first place people would be buying there products here instead.

I've never really understood why a private individual importing goods for themselves and there own use is liable for vat anyway.

 

[del1977]

If they didn't financially cripple manufacturing and enterprise in this county in the first place people would be buying there products here instead.

I've never really understood why a private individual importing goods for themselves and there own use is liable for vat anyway.

It's about a level playing field. If you manufacture here, you have to charge 20% VAT. If you can just import and avoid the 20% charge, then how does the UK manufacturer hope to compete.

 

[9668harry]

It's about a level playing field. If you manufacture here, you have to charge 20% VAT. If you can just import and avoid the 20% charge, then how does the UK manufacturer hope to compete.

I see what your saying, I don't think it works though tbh. Even if every bit of vat was paid on every item purchased abroad, I doubt it would have much impact on the uk manufacturing/retail industry. It's just another tax on tax, taking more money out the pockets of average joe and into the governments crooked coffers. There's plenty that could be done to help manufacturing in this country like reducing vat to a sensible amount for a start.

 

[del1977]

Sure you can reduce VAT, but that would mean a hell of a lot less £s into the treasury, so something else would need to be cut - a lot. Each 1% change in the VAT rate = £5bn +/- .

Reducing VAT just 5% off would lose more cash than is spent on the entire secondary school system in the country.

Key thing is wages. You can't compete with someone working in a factory in China on their wages. Any manufacturing needs to be high end. Churning out batteries and tanks = low end tech stuff.

 

[9668harry]

Perhaps they could offset by chasing all the money's owed from all the multimillion pound company's that are allowed to trade here and yet somehow manage to avoid paying there fair share of taxes. Of course, it works out a lot easier for them to attach the financial burden of the country on the little man.

The country's gone to the dogs I tell you [emoji23].

 

[andipandi]

I would have no problems paying VAT on my imported goods, obviously if I don't have to I wont. For instance FT are currently selling the authentic Wofoto Sapor at £8.71, including VAT it's £10.45, still miles cheaper than anywhere in the UK. I do actually try to buy from the UK, even the high street stores, bloke was selling an authentic Wofoto Troll at £20, except it's not authentic, it's the FT one that sells for £6.13. I know he gets stuff from FT, seen the packages. Fair enough, just don't lie and tell me it's the authentic one. I guess everyone's at it, you cant really blame them considering some of the stories about the big companies and rich celebrity type people paying next to fcuk all in corporation/personal tax.

Scroll down that Guardian piece to suggested articles and immediately you'll see "Fresh questions for Amazon over pittance it pays in tax" and "HMRC has questions to answer over Amazon and Google's tax bills". Tons more where they came from, legal tax avoidance schemes, creative accounting and tax loopholes must run into billions lost, no one in authority seems to give a shit about that.

 

[del1977]

Agree with points on corporate avoidance schemes. The problem is that the rules of how international companies are taxed are decades old, were drawn up before the internet, before commercial air travel even. Getting them changed though, requires international agreement. It is limited what the UK can do unilaterally.

I've been boycotting Starbucks for ages, try to avoid using Amazon as much as possible, and well... can't really avoid Google sadly, but always stay logged out so they can't spy and try to advertise stuff to me.

Despite this, I should declare - I make a living advising on corporate tax and 'creative' accounting

 

[crustyfolker]

Big companies are allowed to get away with anything because they have the money to control everything. Take amazon for instance ok they do not pay their fair share but imagine how much would be lost by government if they didn't pay anything. Their turnover is to great for the gov to moan at them the gov would rather get a few million quid than nothing at all. This is why Governments won't do anything about Tobacco companies, because if the tobacco companies pulled out of UK business altogether think how much money the Gov would lose,

The worst invention ever in the history of the world is MONEY

 

[Mawsley]

The worst invention ever in the history of the world is MONEY

Really?

I would cite 'the bullet', 'the tactical thermonuclear warhead', 'biological nerve agents' and 'anything featuring Simon Cowell' as being worse.