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European Commission proposes to remove import VAT exemptions


slinch
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Though about posting this in the everything else board, but this greatly affects many of us, so maybe it fits here as well. Mods feel free to move it if necessary.

 

So I just read the news, that the EU commission is planning to remove import VAT exemption for purchases outside EU, meaning that instead of only packages above a certain value (22€ in most places) getting hit by tax, all packages will be taxed from now on. A huge bummer if/when this ends up happening.

 

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Action against VAT fraud from outside the EU: Small consignments imported into the EU that are worth less than €22 are currently exempt from VAT. With around 150 million parcels imported free of VAT into the EU each year, this system is open to massive fraud and abuse, creating major distortions against EU business. Firstly, EU businesses are put at a clear disadvantage since unlike their non-EU competitors, they are liable to apply VAT from the first eurocent sold. Secondly, imported high-value goods such as smartphones and tablets are consistently undervalued or wrongly described in the importation paperwork in order to benefit from this VAT exemption. The Commission has therefore decided to remove this exemption.

 

http://europa.eu/rapid/press-release_IP-16-4010_en.htm

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Well, that sucks big time. Just a few months ago our national postal office decided that they will tack on an additional 15€ fee to any package you have to pay VAT on (for their hard work reading the customs declaration), and now this.

 

Seems like in the future the only viable way to continue buying records from outside the EU will be to have a friend who will consolidate all your purchases in one big package, or to use one of those shipping forwarders who consolidate your stuff as well.

 

Thanks for pointing this out, Slinch.

Edited by mesi
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1 minute ago, Mourning Wood said:

would US sellers still be able to save EU/UK buyers some money by declaring the contents a gift with a value under $10? Obviously labels/stores/distros selling brand new records would probably not do this anyway...

Probably not, because the main reason they decided this is supposedly due to the deficit caused by customs fraud, which this fall under.

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Because of postal service fees rather than the actual tax I've been getting records sent to a US address for ages.

 

All UK postal services have been putting a fee on when they charge for VAT for a very long time so your £25 album usually ends up costing £40 with £5 of VAT and a £10 fee, some are much worse, Fedex springs to mind and their fee is something like £15 or £20 before you start

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I've been ordering from the US since '03 and in this timeframe I only had to pay import duties once. Guess I'm just lucky, hopefully this won't go through.

 

On the side note I know that trade tax is huge force in the economy but in the 21st century it should be irrelevant by now as much as our depedency on fossil fuel if the human race had some common sense...

Edited by xfactor675
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