Duty/VAT on bike product/parts from Spain/EU

[Hugo Stiglitz]

Im in need in distraction and maybe I can't really afford but I've seen a new bike frameset listed in Spain. I've shopped with bikeinn recently in a pair of Adidas terrex (no charges) but on a frame where any duty could be ruinous...

Does anyone know currently if there is extra duty and/or VAT on bike parts etc from the EU?

[SS2.]

Duty could be 14%-15%, VAT 20%.

Depending on how the goods were shipped, you may also have to pay additional clearance charges to the courier.

Can certainly take the shine off what looked like a bargain at first glance.

[Hugo Stiglitz]

Serious?

[louiebaby]

What's the saving vs chucking some wheels and handlebars in the boot and getting on a ferry, then bringing it back as a bike you took with you?

Technically (probably) smuggling, I guess...?

[SS2.]

Hugo Stiglitz said:

Serious?

Courier may well add admin charges, as well.

[upsidedownmark]

It's not so surprising and entirely logical:

In the past you'd have paid the sticker price with whatever vat was assessed at the point of sale. Now it *looks* cheaper because when shipped to the UK you won't pay Spanish VAT, but you WILL pay UK Vat on landing. Which is probably about a wash, although it looks worse 'cos the sticker price got a lot lower ('vat free').

Duty, well, er.. yes. Price of freedom and all that..

FWIW the threshold is 135 - under that it should act pretty much like it used to, which might explain your addidas..

[SS2.]

upsidedownmark said:

FWIW the threshold is 135 - under that it should act pretty much like it used to, which might explain your addidas..

VAT is charged on imported goods with a total value of less than £135, but it's [supposedly] collected at the point of sale rather than the point of importation.

Supply VAT as opposed to Import VAT.

This has been the case since 01/01/2021.

[troc]

Yep. Works both ways. I ordered some tools from the uk to Holland which came to under £50 or so including postage and ended up paying an extra £20 for the privilege of having to go to a pick up point in the rain to collect them.

Still waiting for any of the awesome upsides to brexit the government promised us!

[upsidedownmark]

SS2. said:

upsidedownmark said:

FWIW the threshold is 135 - under that it should act pretty much like it used to, which might explain your addidas..

VAT is charged on imported goods with a total value of less than £135, but it's [supposedly] collected at the point of sale rather than the point of importation.

Supply VAT as opposed to Import VAT.

This has been the case since 01/01/2021.

Correct.. which is also pretty much how everything worked when we were still in the EU; VAT is (usually) in the sticker price, definitely (should be) in the checkout price and doesn't attract duties.

[IrateNinja]

SS2. said:

Courier may well add admin charges, as well.

That's not the correct tariff for a frameset that OP mentioned, I don't think.

I was stung for VAT on a power meter from P2M recently, but as they'd take German VAT off the price anyway that was fine. No additional duty was billed, but that was under another tariff code again.

[Sway]

We have a FTA with the EU - looking at the Global Tariff Tool is not appropriate for Spanish goods, that's for third nations with no trade agreement...

However, the likelihood is, that it's not a Spanish frame, but instead one imported from outside the EU. Now, for 'proper' firms, this would be a wash from a duty perspective (the Spanish company being able to recover the 14% paid upon import into Spain, then paying 14% on import into the UK).

Similar for VAT - don't pay Spainish VAT, do pay UK VAT.

In reality - most firms seem incapable of managing IPR, and indeed VAT collections. So, you end up essentially paying a double dose of import duties, as well as nonsense 'handling fees' to transact really very simple (and fully automatable) VAT charging.