VAT loophole closed in new year :D

[BAGHAG999]

I'm not sure how it can be a scam, exactly, if it brings the customer *lower* prices! They have been making clever use of a piece of, probably, sloppily worded statute. This loophole (which is exactly the right word in my view) is now to be tightened up. You can call it a lot of things, but you'd need to stretch the definition of "scam" rather a lot to apply it!

Thats my opinion , maybe the companies will get most the tax writen off like Vodaphone did.

[ChameleonSystems]

In general I don't think prices will rise by 20% for those items of £15 or lower. What it will mean is that the gap will close a bit between what they can do and what the smaller seller can do. Its relevant to all sellers in the same market (which covers a lot of ground). I feel I will be able to match them on price now on more titles.

I won't be able to do much about the practice of selling new titles at a loss just to corner the market and drive out other smaller sellers. They do this with most of the new popular games. They sell below their cost, just to take business away from everyone else, then put prices back up later.

[BAGHAG999]

In general I don't think prices will rise by 20% for those items of £15 or lower. What it will mean is that the gap will close a bit between what they can do and what the smaller seller can do. Its relevant to all sellers in the same market (which covers a lot of ground). I feel I will be able to match them on price now on more titles.

I won't be able to do much about the practice of selling new titles at a loss just to corner the market and drive out other smaller sellers. They do this with most of the new popular games. They sell below their cost, just to take business away from everyone else, then put prices back up later.

Its hard enough im finding to compete with the buying power of larger companies

[TiasTreasures]

Is the VAT going to be charged when a U.S. eBid seller ships something to the U.K.? We don't have that tax here (I think it's the only one our legislators missed), and I'm not sure how it works.

[MPS16]

Is the VAT going to be charged when a U.S. eBid seller ships something to the U.K.? We don't have that tax here (I think it's the only one our legislators missed), and I'm not sure how it works.

See Below :-

[JaBek1]

I'm not quite certain how VAT being collected would change the slope of the playing field for many sellers. If a small business owner is trying to compete with a large corporation, the larger corporations buying power gives them an advantage in getting merchandise at lower cost resulting in lower prices. The collection of VAT would, I expect, be applicable to both large & small seller.

Frankly, it would appear to me that the "private" seller has an advantage over the "business" seller when it comes dodging restrictions, licensing and business taxes. Seems like the slope is still a bit steep in that respect.

If I'm not mistaken, DUTY & VAT have always been required on imports with the respective values set forth by UK powers that be. I'm not sure whether any current loophole closing will have much effect on items coming into the UK from US sellers.

[TiasTreasures]

If I understand everything posted here, effective in 2012, anyone in the UK who buys something from me has to pay the VAT.

Is this charged to the buyer when it enters the country, as would a customs duty? I hope the seller isn't supposed to collect and forward it.

Is this being publicized enough so UK buyers will know about it BEFORE they buy from sellers in other countries?

[MPS16]

If I understand everything posted here, effective in 2012, anyone in the UK who buys something from me has to pay the VAT.

Is this charged to the buyer when it enters the country, as would a customs duty? I hope the seller isn't supposed to collect and forward it.

Is this being publicized enough so UK buyers will know about it BEFORE they buy from sellers in other countries?

I think you have got the wrong end of the stick.

Nothing has changed except a VAT loophole for sellers using the Channel Islands.

Import Vat plus any Customs Duty would be calculated using the data added to the CN22 Form, which is attached to the package.

[TiasTreasures]

I've shipped orders with a total amount of more than £15 to UK buyers. So they must have paid this tax, totally transparent to me.

How high is this tax? Is it something I should warn buyers about before I ship?

[ChameleonSystems]

I'm not quite certain how VAT being collected would change the slope of the playing field for many sellers. If a small business owner is trying to compete with a large corporation, the larger corporations buying power gives them an advantage in getting merchandise at lower cost resulting in lower prices. The collection of VAT would, I expect, be applicable to both large & small seller.

Frankly, it would appear to me that the "private" seller has an advantage over the "business" seller when it comes dodging restrictions, licensing and business taxes. Seems like the slope is still a bit steep in that respect.

If I'm not mistaken, DUTY & VAT have always been required on imports with the respective values set forth by UK powers that be. I'm not sure whether any current loophole closing will have much effect on items coming into the UK from US sellers.

Its not as simple as that. The buying power of the larger company applies to a selection of items, however a few items I can source cheaper than they can (exactly how is my secret ). So then I can undercut them only if they also have to charge VAT on their sales; they can no longer erode any advantage I have. The companies that use the Channel Islands as a base will not be able to sell without VAT on items of £15 or less. The special thing about the Channel Islands is postage to mainland UK is cheap and if they can sell without VAT that gives them an unfair advantage.

What I need to do is buy a small island just off the coast of Scotland, declare independence and sell my stock to the UK