Why is online shopping more expensive?


0

Stock photo of a woman shopping online at home

Stock photo of a woman shopping online at home

Some shoppers have been exposed to unexpected charges when purchasing things from sellers in the European Union.

The UK has signed a Brexit trade agreement with the European Union to stop new duties – known as tariffs – from coming into force in 2021.

However, there are several other fees that are not covered by this deal.

I want to buy a 50 GBP treasure from the European Union, what do I need to know?

The Value Added Tax (VAT), the sales tax, has always been required on EU goods.

Since Brexit, the way it is implemented has changed.

Previously, you would have paid the local VAT rate.

So, if you buy a jacket from a store in Sweden, for example, you will pay Swedish VAT.

Now, you are paying UK VAT, which is 20%.

But for anything under £ 135, VAT should automatically remain part of the final price you pay when paying online.

What if I spend more than £ 135 on my jumper?

Most items over £ 135 now require UK VAT to be paid at the point of delivery – no longer included in the online payment process.

So if you buy an expensive transit from an EU seller, now the delivery company will require you to pay VAT before it is delivered to you.

And this could be a shock if the retailer doesn’t clarify this before making the purchase.

A stock photo of a woman receiving the delivery at her door

A stock photo of a woman receiving the delivery at her door

You should also check your bill to make sure the retailer’s systems are working properly and not being charged twice, says Martin Shah, partner at Simmons & Simmons law firm.

“If the delivery driver asks to pay VAT on goods purchased of £ 135 or less, you must verify your receipt, as you should have already paid VAT at the point of sale,” he adds.

What if I buy from an online marketplace?

Small sellers now need to charge UK VAT when listing their items on online marketplaces like Amazon, eBay or Etsy.

So the cost may increase when you place a UK delivery address.

A woman carrying a new crest

A woman carrying a new crest

Are there any other fees I should know about?

Customs duties also apply to merchandise valued at over £ 135.

No customs duty is required if the expensive transit is entirely manufactured and manufactured in the European Union.

But customs duties may need to be paid if the EU seller originally imported them from a country outside the EU.

The same fees may apply if a certain percentage of the materials used to make the transit come from outside the European Union (under what is known as Rules of origin).

You can contact the retailer before purchasing to ask if you will need to pay any customs duties.

If you have to pay, the delivery company must send you an invoice.

Flowchart showing whether customs duties are payable on goods over 135

Flowchart showing whether customs duties are payable on merchandise over £ 135

How much will I pay extra?

exist Different prices depending on what you buy.

And some things have no customs duties at all.

“The tariffs can be as high as 1.7%,” says Anna Jerzyowska, a trade and border consulting firm.

“ But textiles, food and drink could be higher.

“Very few more than 20%.”

The knitted cotton pullover has 12% customs duty.

Before Brexit, those who first imported them into the European Union would have paid tariffs.

It can then be transferred to other European Union countries – including the United Kingdom – without any other fees.

I charge administration fees, what is this?

Companies may also charge additional fees for delivery – because they now need to spend time filling out the paperwork.

Delivery options and fees should be listed on the retailer’s website.

Can I still buy clothes of different sizes and return the clothes I don’t want?

If you return a purchase, you can claim any fees by Complete Form C285 from HM Revenue & Customs.

What if I receive a gift from the European Union?

Stock photo of a pile of delivered parcels

Stock photo of a pile of delivered parcels

Any gift from outside the UK greater than £ 39 is subject to VAT.

If a friend buys a gift directly from a German retailer and is asked to ship it to you in the UK, the carrier will likely require you to pay any VAT or customs duties owed.

If your friend sends the gift from a local post office, they will also need to fill out a customs form.

But the person sending the gift can ask the seller or shipping company if they can pay in advance – known as fees paid – to avoid the potential embarrassing situation that you have to pay to receive their gift.


Like it? Share with your friends!

0

What's Your Reaction?

hate hate
0
hate
confused confused
0
confused
fail fail
0
fail
fun fun
0
fun
geeky geeky
0
geeky
love love
0
love
lol lol
0
lol
omg omg
0
omg
win win
0
win
Joseph

0 Comments

Your email address will not be published. Required fields are marked *