ZenAnarchi
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- May 8, 2022
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Having read the article linked below, I thought I would share some Norwegian VAT wisdom accrued through bitter experiences. And the article is rather funny, in a “glad it’s not me” kind of way.
https://www.theguardian.com/politic...or-11000-chinese-firms?CMP=Share_iOSApp_Other
The reason for warning you Brits is the following: “A law change in January 2021 meant online marketplaces such as Amazon or eBay have to collect VAT from overseas traders themselves and pay it directly to HMRC.”
Norway has had a similar system in place for 3-4 years now, called VOEC. Our tax authorities have compiled a long list of companies who theoretically collect the VAT in advance, and the purchase should go right through customs. The only problem is…IT DOESN’T WORK!
1) Paying VAT does not mean you have paid VAT. More times than I care to remember, I’ve paid a company VAT only to be charged again, and duties of an extra £25 in addition. This has occurred with AliExpress and several Chinese companies, but also with the likes of Amazon and Etsy. And fighting the bureaucracy is always a losing battle, be it the seller or customs.
2) The list of companies is not updated. Having found a company that is registered to take VAT on the official list, this should mean a pain-free experience. But the lists are never updated! I have contacted the appropriate authorities about several companies that are on the list, that either take VAT incorrectly or admit that they no longer participate. No one cares…let the buyer beware.
3) There are always exceptions. Even though Norway has this VOEC system, there are many exceptions, and it’s not easy to discern. All tobacco related products imported to Norway are taxable and must be registered, and that includes absolutely all vape products (believe it or not). Vitamins are another example. So even though I’ve paid the VAT on some purchases, I still end up having to pay the duties’ fee of £25. And don’t try fighting customs about the law or their definition of it, arrogance doesn’t even begin to describe it.
4) A fraudulent company can suddenly mean you have to pay. As mentioned in the article, many Chinese companies fraudulently register with a UK address. If this is discovered by the HMRC, then the package you ordered could be charged VAT upon arrival. There are several companies selling vape products that one could suspect, for example dj vapes.
It’s a nasty surprise having to pay VAT twice, and fighting to get your money back is both frustrating and often futile. My advice, as pathetic as it is, is to know the customs and import laws as well as you can. Check all the companies you will be ordering from on TrustPilot and Google, many people post these experiences. And beware 3rd party vendors on many of these websites, as no one will take responsibility if there’s a problem.
This may seem obvious and unnecessary, and I hope it is, but if I can prevent a few others being burned by this idiocy, I’ll be happy. A word to the wise is sufficient.
https://www.theguardian.com/politic...or-11000-chinese-firms?CMP=Share_iOSApp_Other
The reason for warning you Brits is the following: “A law change in January 2021 meant online marketplaces such as Amazon or eBay have to collect VAT from overseas traders themselves and pay it directly to HMRC.”
Norway has had a similar system in place for 3-4 years now, called VOEC. Our tax authorities have compiled a long list of companies who theoretically collect the VAT in advance, and the purchase should go right through customs. The only problem is…IT DOESN’T WORK!
1) Paying VAT does not mean you have paid VAT. More times than I care to remember, I’ve paid a company VAT only to be charged again, and duties of an extra £25 in addition. This has occurred with AliExpress and several Chinese companies, but also with the likes of Amazon and Etsy. And fighting the bureaucracy is always a losing battle, be it the seller or customs.
2) The list of companies is not updated. Having found a company that is registered to take VAT on the official list, this should mean a pain-free experience. But the lists are never updated! I have contacted the appropriate authorities about several companies that are on the list, that either take VAT incorrectly or admit that they no longer participate. No one cares…let the buyer beware.
3) There are always exceptions. Even though Norway has this VOEC system, there are many exceptions, and it’s not easy to discern. All tobacco related products imported to Norway are taxable and must be registered, and that includes absolutely all vape products (believe it or not). Vitamins are another example. So even though I’ve paid the VAT on some purchases, I still end up having to pay the duties’ fee of £25. And don’t try fighting customs about the law or their definition of it, arrogance doesn’t even begin to describe it.
4) A fraudulent company can suddenly mean you have to pay. As mentioned in the article, many Chinese companies fraudulently register with a UK address. If this is discovered by the HMRC, then the package you ordered could be charged VAT upon arrival. There are several companies selling vape products that one could suspect, for example dj vapes.
It’s a nasty surprise having to pay VAT twice, and fighting to get your money back is both frustrating and often futile. My advice, as pathetic as it is, is to know the customs and import laws as well as you can. Check all the companies you will be ordering from on TrustPilot and Google, many people post these experiences. And beware 3rd party vendors on many of these websites, as no one will take responsibility if there’s a problem.
This may seem obvious and unnecessary, and I hope it is, but if I can prevent a few others being burned by this idiocy, I’ll be happy. A word to the wise is sufficient.
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