Audi Tradition costs post Brexit

Alan_uk

A2OC Donor
Article on the BBC website re people in shock over the fees to import items. https://www.bbc.co.uk/news/business-55734277

Besides VAT and duty there are fees charged by the courier for collecting the vat & duty. Post Office is £8, DHL is 2.5% minimum £11 and TNT a flat £4.31. However, vat is only for goods over £39 and duty for goods over £135

I looked up vat & duty on car parts and found this page: https://www.trade-tariff.service.gov.uk/headings/8708

Looks like it's code 8708 but that is sub-divided into 100s of sub-categories (click on Open all Headings). Then it gets involved. A quick glance shows 20% vat on everything but duty can be 0%, 2%, 4% or 4.5%.

In recent times Rick Rickmeister has kindly made up a bulk order to save postage but if that makes the cost over £39 then vat will be payable on top of the German vat and if over £135 then duty will be payable. The worst bit for Rick will be identifying the codes - one package might have items at different rates of duty and all presumably need putting on a form - just read the horror stories of people trying to get to grips with the forms and all the coding.

As an example is the trim parts I ordered through Rick. At first glance it looks like being for "Other parts and accessories of bodies (including cabs) / Other (870829) " and then being " For the industrial assembly of: / for passenger vehicles under 8703" thus giving 8708291000, so would have 20% vat and 0% duty.

But then I though I am repairing not assembling so maybe it's Other / Other / Other giving 8708299000 which is 20% vat and 4% duty.

Just getting the feeling that it's going to get harder to keep our A2s on the road.
 
Yep I had a feeling that this would happen. Bad new non the less. Perhaps things will sort themselves out but I am not holding my breath.
Shame, I have made use of the kind offer that Rick made to the forum.
 
I believe that Audi Tradition is based in Germany, so if shipments are made from there, ie within the EU, then no duty is payable. Duty is only levied if the shipment is made from a country outside of the EU (Third Party Country).
The goods still need to be identified correctly though, but this should be done by AT on their delivery note.
There is still VAT and courier charges to be paid.
 
Just make sure the sender deducts his VAT so you do not pay VAT twice, in the senders country and your own. Then there will be little pricedifference.
 
I’m unsure how all this is going to affect the Pro Boost ECU coming into the country. I have a set price on units from Proboost that has to be met. With the way the exchange rate has been going I am getting less and less for each unit in commission. It was down to £24 per unit at one point from a high of around £30.

If there is additional charges for VAT on the batches (which usually have a retail value of about £1500-1800) and extra handling charges then it may well be getting to the point where I won’t be making anything for all the risks that are involved.

Does anyone know how the VAT charges would be payable this end. How would customs know the packages value?
 
If our great “leaders” hadn’t chosen to leave the single market and customs union nothing would have changed relative to the import/export of goods. Leaving the EU didn’t mean we had to leave the S.M and C.U. This is a choice, not inevitable.
 
I’m unsure how all this is going to affect the Pro Boost ECU coming into the country. I have a set price on units from Proboost that has to be met. With the way the exchange rate has been going I am getting less and less for each unit in commission. It was down to £24 per unit at one point from a high of around £30.

I thought you took the exchange rate into account when pricing the ECUs? Can you not just calculate the selling price using the exchange rate that was applicable when they were received. People will have to accept that the products are priced in Euro and pay accordingly, it's the same as buying holiday currency, you shouldn't be absorbing the difference. The same with the handling charges, just apportion and pass these on.

Does anyone know how the VAT charges would be payable this end. How would customs know the packages value?

The VAT is calculated at the GB rate based on the invoice value that is declared by the seller. This value is stated on the documentation that they pass to the courier.
 
I thought you took the exchange rate into account when pricing the ECUs? Can you not just calculate the selling price using the exchange rate that was applicable when they were received. People will have to accept that the products are priced in Euro and pay accordingly, it's the same as buying holiday currency, you shouldn't be absorbing the difference. The same with the handling charges, just apportion and pass these on.



The VAT is calculated at the GB rate based on the invoice value that is declared by the seller. This value is stated on the documentation that they pass to the courier.

I try to absorb as much of the costs as I can, I cover the carriage from Germany out of my cut and also the cost of postage to buyers in the U.K. My aim was always to be offering a service to the community and keep more FSI’s on the road rather than making a good profit from the venture.

If VAT is going to be working out at around £320 for a batch then it may well get to the point where each unit is too expensive to appeal to any customers.
 
I thought the seller (ProBoost) has to pay the UK VAT (which means they have to become UK VAT registered).
UK VAT payable is 20 % of the value added, which will be ProBoost's parts, and labour I imagine.
I am not an expert, just my understanding, or miss-understanding ...
Mac.
 
I thought the seller (ProBoost) has to pay the UK VAT (which means they have to become UK VAT registered).
UK VAT payable is 20 % of the value added, which will be ProBoost's parts, and labour I imagine.
I am not an expert, just my understanding, or miss-understanding ...
Mac.
I think you are right Mac. I recall reading an article that was the case. Article went on to say it was a very unusual approach that HMRC had taken and that most small businesses abroad would no longer supply the UK as too much hassle. Article here https://www.bbc.co.uk/news/business-55530721

Why HMRC thinks it can compel companies abroad to follow it's rules and charge them a fee for registering beats me. I think many companies abroad will just send the goods and leave the hassle to the buyer - or refuse to sell to the UK - see Audi Tradition below.

I note the argument about protecting UK industry but for spare parts for existing equipment (including cars) that people already have is penalising them. Especially where parts only come from abroad and are protected by patents.

Audi Tradition web site says
Due to the Brexit, we are currently unable to sell goods to the UK (including Northern Ireland). Our systems are not able to handle different tax rates within the same country (UK).
Please be aware that placed orders with a UK address but a different chosen destination country will be cancelled by us.
We are already looking for a solution to this problem, but this will take some time. Thank you for your understanding
 
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