Tax and duty on instruments when we leave the EU

[Doctor J]

You are definitely, 100%, charged your local tax rate.

[Steve Browning]

10 hours ago, ProfJames said:

There may well be confusion on movement of goods when passing through different VAT rated countries............ 

No, that won't happen because of the transit documentation that accompanies the goods. I can absolutely promise you that. 

[Steve Browning]

10 minutes ago, Doctor J said:

You are definitely, 100%, charged your local tax rate.

Not necessarily (the usual answer of the tax professional). A supplier will charge local tax if they're registered for VAT locally - in all likelihood, in this scenario, if they have exceeded the distance selling threshold. What happens to ours after Brexit might be interesting.

[Doctor J]

Trust me. They apply the local VAT rate depending on the location of the buyer, in line with EU law.

Quote

Selling goods to the final consumer in another EU country

If you sell goods and send them to consumers in another EU country, you usually need to register your business there and charge VAT at the rate applicable in that country - unless the total value of your sales to that country within the respective tax year falls below the limit set by the country.[/quote]

Thomann do not fall below the limits which are, I believe, €85,000. If you want to check for yourself, just change your location between different € countries on any item in the Thomann site and watch the price go up and down.

 

Edited October 15, 2020 by Doctor J

[Steve Browning]

8 minutes ago, Doctor J said:

Trust me. They apply the local VAT rate depending on the location of the buyer, in line with EU law.

 

I see the word usually so there is no 100% certainty. That is true for Thomann but may not be for every EU business. After 1/1/21 we are not an EU country either, which could make it interesting.

[Doctor J]

We were talking about Thomann, no? Thomann charge you the UK VAT rate if you're in the UK, not the German VAT rate. That is all.

[Al Krow]

8 hours ago, Woodinblack said:

Japanese and US, are the same yes, but not Indonesia, they have a free trade deal with the EU which we lose. 

Fair point. But remember that's because we struck up a FTA with Japan in 5 mins flat this year, and no reason we won't put in place one with Indonesia also in the near future. And I'd be happy to wager we will have a FTA in place with the US before the EU manages to (it took them 7 years to do their FTA with Canada!!). In which case, as well as lower VAT on Italian sourced Markbass (Italy's VAT rate is 26.5% next year), we could well have cheaper US Fenders, Mesa, 3Leaf than when we were in the EU etc etc. 

Oh and Cornish fishermen will hopefully get a little more than the 9% entitlement to fish stock off the Cornish cost due to French fisherman currently having 84%! But that's another story... 

[Woodinblack]

4 minutes ago, Al Krow said:

Fair point. But remember that's because we struck up a FTA with Japan in 5 mins flat this year, and no reason we won't put in place one with Indonesia also in the near future.

Well, why so long then, we have been able to make trade deals for a year, we seem to have replaced 19 so far. Got quite a long way to go.

4 minutes ago, Al Krow said:

And I'd be happy to wager we will have a FTA in place with the US before the EU manages to (it took them 7 years to do their FTA with Canada!!).

I will take that wager. But if we do it is because we can accept less from it than the EU will.

4 minutes ago, Al Krow said:

In which case, as well as lower VAT on Italian sourced Markbass (Italy's VAT rate is 26.5% next year), we could well have cheaper US Fenders, Mesa, 3Leaf than when we were in the EU etc etc. 

True. If our money can afford them, and we get that deal.

4 minutes ago, Al Krow said:

Oh and Cornish fishermen will hopefully get a little more than the 9% entitlement to fish stock off the Cornish cost due to French fisherman currently having 84%! But that's another story... 

Umm.. I am not a fisherman, how in any way of anything is that relevant? Fishing is a tiny industry in the UK and the fish that we fish we have to sell to other people as we don't eat it. What is the point putting up trade barriers to people we sell the fish to.

Still, its a shame when we were in the EU, we didn't have anyone who was prepared to support british industry as MEPs.

 

[tauzero]

15 hours ago, ProfJames said:

What will be the repercussions?  UK prices will increase because of the Tax and duty applicable if you source from the EU.........

There will be a certain amount of cancelling out - although VAT will be charged in the UK, it won't be charged in the originating country, so it'll just be duty charged, plus the extra shipping costs for the vastly increased amount of form filling that there will be.

[tauzero]

8 hours ago, Woodinblack said:

Japanese and US, are the same yes, but not Indonesia, they have a free trade deal with the EU which we lose. 

And we haven't got a free trade agreement with the US, and it's not appropriate to go into the politics of why we might never have one.

[Al Krow]

12 minutes ago, Woodinblack said:

I will take that wager. But if we do it is because we can accept less from it than the EU will.

Done. Name your US bass pedal for the wager and I'll reciprocate with one of the same value 

4 minutes ago, tauzero said:

And we haven't got a free trade agreement with the US...

Yeah leave the politics aside, let's just focus on economics and facts.

Key point is nor have the EU. But I'm happy to wager with Woody we will get a FTA with the US before the EU does (and we will get cheaper US bass kit as a result).

[LeftyJ]

15 hours ago, TheGreek said:

We'll just have to buy British - Wal, Overwater, Status, GB, ACG, Jaydee.

Terrible!!

...whose costs will likely go up too, because they have to source several parts from outside the UK. Hardware, pickups, electronics, woods. Which will be reflected in their prices.

[tauzero]

1 hour ago, Al Krow said:

Oh and Cornish fishermen will hopefully get a little more than the 9% entitlement to fish stock off the Cornish cost due to French fisherman currently having 84%! But that's another story... 

Will there be a mechanism in place to stop them selling off their quotas to non-UK fishermen, like they did when we were in the EU?

Sorry, little bit of politics creeping in there.

[tauzero]

I think I should also point out that we have left the EU. We are simply in the interim period now, which could have been extended but wasn't.

Nearly time to apply for my Irish passport.

[Woodinblack]

54 minutes ago, tauzero said:

And we haven't got a free trade agreement with the US, and it's not appropriate to go into the politics of why we might never have one.

No, but that was the same before so it hasn't changed.

 

45 minutes ago, Al Krow said:

Done. Name your US bass pedal for the wager and I'll reciprocate with one of the same value 

US bass pedal? I don't think I have any US equipment. Well, I have a gibson guitar, and a fender bass (although that is japanese). Yep, there isn't much of any interest made in america.

 

45 minutes ago, Al Krow said:

But I'm happy to wager with Woody we will get a FTA with the US before the EU does (and we will get cheaper US bass kit as a result).

Which - we have a free trade deal (which could be possible), or we get cheaper bass kit? I mean, we already lost the second one, so that seems unlikely.

A flea Jazz is £1099, it was £882 when it was introduced. It is $1225 in the states, and hasn't changed price. So you are thinking that after all the dust has settled and we have this magical deal, the fender flea is going to be less than £1099?

This is my newly developed, fender flea index

[Al Krow]

5 minutes ago, Woodinblack said:

No, but that was the same before so it hasn't changed.

US bass pedal? I don't think I have any US equipment. Well, I have a gibson guitar, and a fender bass (although that is japanese). Yep, there isn't much of any interest made in america.

Which - we have a free trade deal (which could be possible), or we get cheaper bass kit? I mean, we already lost the second one, so that seems unlikely.

A flea Jazz is £1099, it was £882 when it was introduced. It is $1225 in the states, and hasn't changed price. So you are thinking that after all the dust has settled and we have this magical deal, the fender flea is going to be less than £1099?

This is my newly developed, fender flea index

Hah! Come to think of you it you're right! 

My favourite mainstream basses - Yamaha, Ibanez; favourite multi fx pedals Helix, Zoom, Boss (aka Roland). ALL Japanese (parented)!

Good job we have a FTA with Japan then isn't it? 😁

[Woodinblack]

5 minutes ago, Al Krow said:

My favourite mainstream basses - Yamaha, Ibanez; favourite multi fx pedals Helix, Zoom, Boss (aka Roland). ALL Japanese (parented)!

Good job we have a FTA with Japan then isn't it? 😁

Good job we managed to keep that one yes. Not sure what the rules of origins are on that as only one of my ibanezes was made in japan, and I am sure only the older effects were.

[BigRedX]

Do FTAs include private purchases/imports then? I can't think of anything I have bought from outside Europe that hasn't attracted VAT and duty.

[Woodinblack]

11 minutes ago, BigRedX said:

Do FTAs include private purchases/imports then? I can't think of anything I have bought from outside Europe that hasn't attracted VAT and duty.

FTAs don't cover VAT, they cover duty, the duty on a product, so you would still have to pay VAT on anything because that is a UK sales tax, but it could be duty free, so you don't pay the 3-4% or whatever on guitars etc, 10% on cars etc.

[alyctes]

11 hours ago, Al Krow said:

"Short" sterling by buying buy $ if you believe that. It's a simple currency hedge. You stand to make a 30% return in 8 months if you are correct - go on back yourself 😉

Well, let's start with being unemployed...

And no amount of money is going to compensate if I can't get prescription medication.

Edited October 15, 2020 by alyctes

[Al Krow]

14 minutes ago, alyctes said:

Well, let's start with being unemployed...

And no amount of money is going to compensate if I can't get prescription medication.

I am sorry to hear that.

But what is your concern about medication - I'm not aware of any plans to abolish free prescriptions?

[Aidan63]

there have already been medicine shortages, and/or big cost increases, this year and they are expected to be worse in the chaos of next January, partly down to the B word and partly down to the pandemic

My neighbour was without his prescription meds for several months June/July, none to be had anywhere in the UK, for a made in France medicine, pretty specialist stuff; my own common prescribed med has been variable in availability, cost and choice, at one point only the original licence holder high price version was available to the pharmacy, but for the last few months it's been a made in UK generic which hopefully will be available long term, I just wish it had the days of week printed on the packaging like the other generic I've been taking for the last year had. Many GPs and Pharmacies are changing the way they handle repeat prescriptions which is causing stress and other issues for some patients with chronic conditions.

[Owen]

2 hours ago, Al Krow said:

 

Yeah leave the politics aside, let's just focus on economics and facts.

I am naive enough to believe that politics should be all about economics and facts. 

I am done with this mindset that this clown troupe masquerading as a government have the remotest chance of negotiating anything which would benefit the people they are meant to be serving. Where is the evidence that they have even half a clue?

[Woodinblack]

52 minutes ago, alyctes said:

And no amount of money is going to compensate if I can't get prescription medication.

We will have the free trade deal with America so we can have all the OxyContin that you want

35 minutes ago, Al Krow said:

But what is your concern about medication - I'm not aware of any plans to abolish free prescriptions?

No but there could be quite a few issues in actually getting the drugs.

[Jus Lukin]

-

Edited March 9, 2022 by Jus Lukin