Discussion Forum: Thread 307742

 Author: Brick_Qc View Messages Posted By Brick_Qc
 Posted: Aug 10, 2021 21:47
 Subject: Did the VAT killed the US / Canada market ?
 Viewed: 203 times
 Topic: Selling
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Brick_Qc (3760)

Location:  Canada, Quebec
Member Since Contact Type Status
Aug 21, 2006 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: Brick_Qc
Hi, I was curious as the impact the VAT may had have on our sales. I have had
zero european sales since the end of April. Before it was 3 to 5 per months,
nothing big, but it was there and pretty consistent.

Is it the same for you ? Am I the only one or maybe there's an other explanation
?
 Author: StephenB76 View Messages Posted By StephenB76
 Posted: Aug 11, 2021 04:46
 Subject: Re: Did the VAT killed the US / Canada market ?
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 Topic: Selling
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StephenB76 (458)

Location:  United Kingdom, England
Member Since Contact Type Status
Nov 19, 2017 Contact Member Buyer
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In Selling, Brick_Qc writes:
  Hi, I was curious as the impact the VAT may had have on our sales. I have had
zero european sales since the end of April. Before it was 3 to 5 per months,
nothing big, but it was there and pretty consistent.

Is it the same for you ? Am I the only one or maybe there's an other explanation
?

I think it maybe having a slight impact as it will increase costs, however the
VAT collection wasn't implemented until July, which is why I think other
factors are more likely to be involved, I currently have an order that was shipped
from Canada on the 25th June and is still delayed, so I think the longer shipping
times as a result of the pandemic are starting to filter through and people are
going for sellers that are nearer to reduce possible delays.
 Author: SylvainLS View Messages Posted By SylvainLS
 Posted: Aug 11, 2021 05:44
 Subject: Re: Did the VAT killed the US / Canada market ?
 Viewed: 62 times
 Topic: Selling
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SylvainLS (46)

Location:  France, Nouvelle-Aquitaine
Member Since Contact Type Status
Apr 25, 2014 Contact Member Seller
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In Selling, StephenB76 writes:
  In Selling, Brick_Qc writes:
  Hi, I was curious as the impact the VAT may had have on our sales. I have had
zero european sales since the end of April. Before it was 3 to 5 per months,
nothing big, but it was there and pretty consistent.

Is it the same for you ? Am I the only one or maybe there's an other explanation
?

I think it maybe having a slight impact as it will increase costs,

It only increase costs for sales below €22/£15 (which were exempt from VAT before).
So if your sales were in that range, that might indeed be the explanation.

For the €22-€150/£15-£135 range, it makes VAT unavoidable and “obvious.”
Some people were not aware there would be import VAT to pay at reception…
or they always hoped to “slip in between the drops.”
So VAT might be a factor but it’s more difficult to tell.

But…

   however the
VAT collection wasn't implemented until July, which is why I think other
factors are more likely to be involved, I currently have an order that was shipped
from Canada on the 25th June and is still delayed, so I think the longer shipping
times as a result of the pandemic are starting to filter through and people are
going for sellers that are nearer to reduce possible delays.

And it’s summer and sales are lower in the summer.

So I would wait a few months more before making conclusions
 Author: Teup View Messages Posted By Teup
 Posted: Aug 11, 2021 05:54
 Subject: Re: Did the VAT killed the US / Canada market ?
 Viewed: 54 times
 Topic: Selling
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Teup (6610)

Location:  Netherlands, Utrecht
Member Since Contact Type Status
May 6, 2004 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store: BLOKJESKONING
In Selling, SylvainLS writes:
  In Selling, StephenB76 writes:
  In Selling, Brick_Qc writes:
  Hi, I was curious as the impact the VAT may had have on our sales. I have had
zero european sales since the end of April. Before it was 3 to 5 per months,
nothing big, but it was there and pretty consistent.

Is it the same for you ? Am I the only one or maybe there's an other explanation
?

I think it maybe having a slight impact as it will increase costs,

It only increase costs for sales below €22/£15 (which were exempt from VAT before).
So if your sales were in that range, that might indeed be the explanation.

For the €22-€150/£15-£135 range, it makes VAT unavoidable and “obvious.”
Some people were not aware there would be import VAT to pay at reception…
or they always hoped to “slip in between the drops.”
So VAT might be a factor but it’s more difficult to tell.


True, but well, people aren't always that logical - it could have an effect
on the bigger orders as well. Not seeing the extra charges at first glance, or
hoping it will slip the net, can have caused people to order in the past when
they won't do it now. Plus, they could have been shopping and then realise
they're gonna have to pay extra when they've already compiled a cart.
Especially since with the charges excluded those "cheap" shops came out on top
in the search results.

But yes, summer is slow, and one month is too short for conclusions in general,
so it will take some time before we can know.
 Author: nbrumby View Messages Posted By nbrumby
 Posted: Aug 11, 2021 06:34
 Subject: Re: Did the VAT killed the US / Canada market ?
 Viewed: 66 times
 Topic: Selling
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nbrumby (4678)

Location:  United Kingdom, England
Member Since Contact Type Status
Sep 18, 2014 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store Closed Store: brumbliesbricks
In Selling, Brick_Qc writes:
  Hi, I was curious as the impact the VAT may had have on our sales. I have had
zero european sales since the end of April. Before it was 3 to 5 per months,
nothing big, but it was there and pretty consistent.

Is it the same for you ? Am I the only one or maybe there's an other explanation
?

From a personal point of view, I always found shipments from North America got
hit with customs charges, even for low value items - so started to look elsewhere.

On the other hand I’ve bought rare items from Singapore / Russia where I budgeted
in the customs / VAT and they weren’t charged!

I’ve no issues with paying VAT at point of purchase, but there’s a risk if the
package is mis-labeled / isn’t made clear that VAT was charged already that customs
will charge again & I suspect that’s the reason for lower sales.
 Author: yorbrick View Messages Posted By yorbrick
 Posted: Aug 11, 2021 07:10
 Subject: Re: Did the VAT killed the US / Canada market ?
 Viewed: 63 times
 Topic: Selling
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yorbrick (1185)

Location:  United Kingdom, England
Member Since Contact Type Status
Apr 11, 2011 Contact Member Seller
Buying Privileges - OKSelling Privileges - OK
Store Closed Store: Yorbricks
In Selling, nbrumby writes:
  In Selling, Brick_Qc writes:
  Hi, I was curious as the impact the VAT may had have on our sales. I have had
zero european sales since the end of April. Before it was 3 to 5 per months,
nothing big, but it was there and pretty consistent.

Is it the same for you ? Am I the only one or maybe there's an other explanation
?

From a personal point of view, I always found shipments from North America got
hit with customs charges, even for low value items - so started to look elsewhere.

On the other hand I’ve bought rare items from Singapore / Russia where I budgeted
in the customs / VAT and they weren’t charged!

I’ve no issues with paying VAT at point of purchase, but there’s a risk if the
package is mis-labeled / isn’t made clear that VAT was charged already that customs
will charge again & I suspect that’s the reason for lower sales.

Same here. I was looking forwards to the VAT changes as it opens up US and other
sellers as viable for small orders. You pay the VAT upfront and don't get
hit with the extra £8 fee when collecting VAT. However it seems a shambles how
it has been implemented with no guide as to what to include concerning documentation
and how/where to include it. That has put me off. Plus the high international
postage costs these days.

Aliexpress got it all working on 1 Jan, and packages from those sellers have
VAT paid and relevant numbers clearly displayed and I've had no problems
with small electronics parts orders from there.