Redisplay Messages: Compact | Brief | All | Full Show Messages: All | Without Replies| Author: | ghyde  | | Posted: | May 8, 2021 16:13 | | Subject: | Re: BrickLink Marketplace Changes Due to Brexit | | Viewed: | 66 times | | Topic: | Administrative | |
| I have questions regarding how this would affect an Australian seller selling
to a UK buyer:
How does the VAT system apply to Australia?
Is it required for Australian sellers to opt-in to this system?
Does the UK still apply VAT for goods received which do not have a VAT paid declaration?
Is this sent to the seller or the receiver?
Is this VAT added on top of Australia's 10% GST? Does BrickLink also charge
for and collect my GST on my behalf to buyers I'm selling to? Do buyers also
get VAT charged for GST charges?
Does this charging of VAT and or GST apply to orders sent out of Australia to
foreign buyers?
I forget some of these requirements, it's been a while since I sold anything
so I would like enlightenment on that which applies to my situation. This whole
taxation system is more confusing the more I look at it!
Cheers ...
Geoffrey Hyde
In Administrative, Admin_Russell writes:
| | Dear BrickLink members,
Starting Tuesday May 11, BrickLink will enable VAT collection for goods imported
into the UK and Northern Ireland to comply with the new Brexit marketplace rules.
Below is an overview of what this will entail.
Changes at a glance:
* The UK will be excluded from the EU country list and will have its own VAT
regime (like Norway). UK buyers will see VAT exclusive prices from EU sellers
and EU buyers will see VAT exclusive prices from UK sellers. UK buyers will see
VAT inclusive prices from UK sellers only.
* BrickLink will collect and remit VAT on orders up to a value of £135 imported
into the UK and sold to consumers. There will no longer be a VAT exemption for
small consignments up to £15. In this case, the payment method will be restricted
to onsite methods only.
* UK VAT will be added during the checkout process or at the receipt of the final
invoice and will not be included in the item price.
* Where BrickLink is responsible for collecting VAT on orders sent to a UK delivery
address, this amount will be shown separately at checkout.
What this means for you:
* For each qualified transaction, BrickLink will provide a separate VAT invoice
that can be used as proof to customs that VAT has been sufficiently collected.
* In case of refunds, we encourage sellers to use the BrickLink refund feature
to ensure the correct amount of VAT gets refunded. The refund page can be accessed
from the Issue Refund link on the order detail page.
* If you are a non-UK seller and you want to sell goods to UK buyers, you should
opt in to at least one of BrickLink’s onsite payment methods.
An email with this same communication will be sent out later today. For additional
information, please refer to our new Brexit Marketplace Changes Help Page:
https://www.bricklink.com/help.asp?helpID=2514
Thank you,
The BrickLink Team
|
|
 |
| Author: | yorbrick | | Posted: | May 8, 2021 14:07 | | Subject: | Re: BrickLink Marketplace Changes Due to Brexit | | Viewed: | 66 times | | Topic: | Administrative | |
| In Administrative, chris38911 writes:
| | UK Bricklink sellers who turn over less than £85,000 per annum do not have to
register for VAT, nor do they have any obligation to charge VAT on their goods.
So why is Bricklink now going to add VAT to these sellers prices?
|
It isn't charging VAT for UK-UK sales when the seller isn't VAT registered.
|
| Author: | chris38911 | | Posted: | May 8, 2021 12:31 | | Subject: | Re: BrickLink Marketplace Changes Due to Brexit | | Viewed: | 80 times | | Topic: | Administrative | |
| UK Bricklink sellers who turn over less than £85,000 per annum do not have to
register for VAT, nor do they have any obligation to charge VAT on their goods.
So why is Bricklink now going to add VAT to these sellers prices?
|
|
| Author: | SylvainLS | | Posted: | May 8, 2021 01:16 | | Subject: | Re: BrickLink Marketplace Changes Due to Brexit | | Viewed: | 66 times | | Topic: | Administrative | |
| In Administrative, cosmicray writes:
| | In Administrative, SylvainLS writes:
| | In Administrative, cosmicray writes:
| | […]
| | And the rare UK buyers that are also UK VAT-registered businesses can deduct
the import VAT from their collected VAT.
|
How can they do that, if BL is collecting/remitting all their VAT ?
Nita Rae
|
The buyer doesn’t care whether it’s the seller who directly collected the VAT
or if it’s the marketplace, all they need to know and prove is that they did
pay VAT (and to whom), and that will be on the invoice.
At the end of the month (or trimester), they declare the deductible VAT (what
they paid) and the collected VAT (from their sales) and the difference. At the
end of the month (or year), if the difference collected minus deductible
is positive, they pay, if not, they can reclaim it or keep it for next month
(or year).
|
Please slow down on your rate of posting, and read carefully what I wrote.
The buyer (in this transaction) will have a tough time offsetting the VAT, if
they (the buyer, but when they become the reseller) collect no VAT, because their
sales on BL has the VAT being managed by BL (and not by the reseller). This of
course doesn't apply if they are buying on BL to sell elsewhere, unless the
marketplace they are selling on also does manages the VAT for them.
|
No. BL (or any other marketplace) will only manage the import VAT, not all the
seller’s VAT.
The (current) simple VAT mechanism on BL is only there to follow the “prices
should include local VAT for local buyers and should exclude it for foreigners”
rule and pre-calculate the VAT field, it doesn’t “manage VAT” in the sense that
the seller is the one who’s responsible to collect and remit the local VAT.
| | Yes, I understand about them claiming the VAT they paid, but the issue here is
where does the VAT they (theoretically) collect in order to offset it ?
Nita Rae
|
We are talking about a business VAT registered in UK, so:
There’s three cases when they buy, however they buy:
1. From a VAT registered UK seller: they pay UK VAT.
2. From a non-VAT registered UK seller: VAT does not apply.
3. From a non-UK seller: they pay UK import VAT.
Only in case 3, and under £135, does BL/the marketplace collect the UK VAT.
In both cases where they pay VAT (1 and 3), they have an invoice that shows they
paid some VAT and can then write it down in their “deductible VAT” account.
Then, when they sell, there’s two cases:
1. They sell to a UK buyer: they charge, collect, and remit VAT.
2. They sell to a non-UK buyer: they export at 0% VAT.
In case 1., they write the collected VAT in their “collected VAT” account.
Then, when it’s time to declare & pay, all that is deductible is deducted from
what was collected and the difference is remitted or claimable.
Also, if, in case 2., they export to a country with marketplace laws, like the
US or, soon, the EU, then BL, or any other marketplace, will collect US Sales
tax or some EU VAT… but that has nothing to do with their VAT registration in
the UK: they just export at 0% VAT and don’t care about what happens to the buyer
and the buyer’s local taxes. What the new mechanism is is a simplification of
their exports: they don’t have to register for VAT or Sales tax collection in
these countries (and states and counties and towns…).
I hope that’s clearer.
|
|
| Author: | jbricks | | Posted: | May 7, 2021 18:30 | | Subject: | Re: BrickLink Marketplace Changes Due to Brexit | | Viewed: | 58 times | | Topic: | Administrative | |
| In Administrative, cosmicray writes:
| | In Administrative, SylvainLS writes:
| | In Administrative, cosmicray writes:
| | […]
| | And the rare UK buyers that are also UK VAT-registered businesses can deduct
the import VAT from their collected VAT.
|
How can they do that, if BL is collecting/remitting all their VAT ?
Nita Rae
|
The buyer doesn’t care whether it’s the seller who directly collected the VAT
or if it’s the marketplace, all they need to know and prove is that they did
pay VAT (and to whom), and that will be on the invoice.
At the end of the month (or trimester), they declare the deductible VAT (what
they paid) and the collected VAT (from their sales) and the difference. At the
end of the month (or year), if the difference collected minus deductible
is positive, they pay, if not, they can reclaim it or keep it for next month
(or year).
|
Please slow down on your rate of posting, and read carefully what I wrote.
The buyer (in this transaction) will have a tough time offsetting the VAT, if
they (the buyer, but when they become the reseller) collect no VAT, because their
sales on BL has the VAT being managed by BL (and not by the reseller). This of
course doesn't apply if they are buying on BL to sell elsewhere, unless the
marketplace they are selling on also does manages the VAT for them.
Yes, I understand about them claiming the VAT they paid, but the issue here is
where does the VAT they (theoretically) collect in order to offset it ?
|
I don't now how this works in the US, but in most (if not all) European countries
you also get back the VAT if its negative, you don't need to collect vat
to claim vat.
If i would stop selling within the EU, then i would only get VAT back and not
pay any.
|
|
| Author: | cosmicray | | Posted: | May 7, 2021 16:35 | | Subject: | Re: BrickLink Marketplace Changes Due to Brexit | | Viewed: | 54 times | | Topic: | Administrative | |
| In Administrative, SylvainLS writes:
| | In Administrative, cosmicray writes:
| | […]
| | And the rare UK buyers that are also UK VAT-registered businesses can deduct
the import VAT from their collected VAT.
|
How can they do that, if BL is collecting/remitting all their VAT ?
Nita Rae
|
The buyer doesn’t care whether it’s the seller who directly collected the VAT
or if it’s the marketplace, all they need to know and prove is that they did
pay VAT (and to whom), and that will be on the invoice.
At the end of the month (or trimester), they declare the deductible VAT (what
they paid) and the collected VAT (from their sales) and the difference. At the
end of the month (or year), if the difference collected minus deductible
is positive, they pay, if not, they can reclaim it or keep it for next month
(or year).
|
Please slow down on your rate of posting, and read carefully what I wrote.
The buyer (in this transaction) will have a tough time offsetting the VAT, if
they (the buyer, but when they become the reseller) collect no VAT, because their
sales on BL has the VAT being managed by BL (and not by the reseller). This of
course doesn't apply if they are buying on BL to sell elsewhere, unless the
marketplace they are selling on also does manages the VAT for them.
Yes, I understand about them claiming the VAT they paid, but the issue here is
where does the VAT they (theoretically) collect in order to offset it ?
Nita Rae
|
|
| Author: | SylvainLS | | Posted: | May 7, 2021 15:43 | | Subject: | Re: BrickLink Marketplace Changes Due to Brexit | | Viewed: | 69 times | | Topic: | Administrative | |
| In Administrative, yorbrick writes:
| | | |
Indeed. I was looking at it as “which foreigner is better?” 
|
There is no answer to that!
|
Oops, just add “ sell” after “gn” 
|
| Author: | yorbrick | | Posted: | May 7, 2021 15:16 | | Subject: | Re: BrickLink Marketplace Changes Due to Brexit | | Viewed: | 57 times | | Topic: | Administrative | |
| | |
Indeed. I was looking at it as “which foreigner is better?”
|
There is no answer to that!
|
|
| Author: | Admin_Russell | | Posted: | May 7, 2021 14:49 | | Subject: | Re: Changes Due to Brexit - UPDATE | | Viewed: | 155 times | | Topic: | Administrative | |
| In Administrative, Admin_Russell writes:
| | Dear BrickLink members,
Starting Tuesday May 11, BrickLink will enable VAT collection for goods imported
into the UK and Northern Ireland to comply with the new Brexit marketplace rules.
|
UPDATE May 7, 14:49 EDT (BrickLink Time)
Due to some precautions we have decided to take, implementation of the Brexit
system changes will be delayed by one week. Our new deployment target is Tuesday,
May 18.
To make this change, we will move the regularly scheduled monthly maintenance
back 12 hours. The site will be down from 1:00 PM to 2:30 PM EDT. We will run
a warning notice several days before, and post a reminder or two in the Forum.
Thanks for your patience.
|
|
| Author: | SylvainLS | | Posted: | May 7, 2021 14:34 | | Subject: | Re: BrickLink Marketplace Changes Due to Brexit | | Viewed: | 57 times | | Topic: | Administrative | |
| In Administrative, yorbrick writes:
| | […]
| | That’s the same situation for US buyers: Sales tax will be added at checkout
to all three and it’s not shown when they shop and (UK or EU or Norway¹) VAT
registered sellers will be the best deal.
(¹ As it appears there’s a VAT system on BL for Norway.)
|
It is slightly different as if a UK buyer buys from a UK seller, there is no
extra VAT to pay but there is VAT on purchases from abroad. So when sorting by
price, any foreign stores need the VAT to be added whereas UK stores already
have it added (or it is not chargeable).
|
Indeed. I was looking at it as “which foreigner is better?”
But also, EU (and Norway and New Zeand and…) will be the same soon… or are already
worse as import VAT is not shown at checkout and is a nice surprise, kindly wrapped
with a gentle fee by the postal services
|
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