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Dutch bike part dealer shipping to every country in the world except UK because of Brexit VAT change

Boldly gone – e-commerce issue was identified by William Shatner in October

Online bike parts retailer Dutch Bike Bits has announced that with the advent of Brexit, the UK will become the only country in the world to which it will not ship goods. The firm explained that this was because the UK is now asking overseas firms to apply and collect British taxes on behalf of the British government when selling to UK customers.

From January 1, the government introduced a new model for the VAT treatment of goods arriving into Great Britain from outside of the UK.

It says these measures ensure that goods from EU and non-EU countries are treated in the same way and will mean UK businesses are not disadvantaged by competition from VAT-free imports.

The point at which VAT is collected has moved from the point of importation to the point of sale and online retailers are therefore being asked to register for UK VAT and account for VAT to HMRC.

Dutch Bike Bits said that for this service the UK government intends to charge a fee, “to every company in the world in every country in the world which exports to the UK.

 

 

“Clearly this is ludicrous for one country, but imagine if every country in the world had the same idea. If every country decided to behave in the same way then we would have to pay 195 fees every year, keep up with the changes in taxation law for 195 different countries, keep accounts on behalf of 195 different countries and submit payments to 195 tax offices in 195 different countries, and jump through whatever hoops were required to prove that we were doing all of this honestly and without any error.

“Therefore from mid December 2020 onward we ship to every country in the world... except the UK.”

Somewhat bizarrely, the issue was flagged by William Shatner back in October.

It sounds like the William Shatner Store won’t be shipping to the UK any more either.

 

 

The EU will introduce similar rules in July – albeit these will of course cover 27 countries and not just one.

Late last month, Canyon announced that it was pausing shipments to customers in Great Britain and would stop accepting orders entirely from those in Northern Ireland, citing uncertainty caused by Brexit.

The company, headquartered in Germany, said that the move was a temporary one and that it would resume deliveries after January 11 once the situation became clearer.

Alex has written for more cricket publications than the rest of the road.cc team combined. Despite the apparent evidence of this picture, he doesn't especially like cake.

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77 comments

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millhouse | 3 years ago
1 like

I have been buying from Dutch bike company Mantel for a few years now. They have things that UK sellers don't sell or are much cheaper.
Over Christmas they stopped shipping to the UK due to ' heavy traffic at our carriers'
I have looked at their customer service page where they explain how the free shipping on orders over £35 was free will be changing.

Are the shipping costs going up?
Yes, the new shipping costs will be £ 9.99 for all orders.

When are the shipping costs going up?
The implementation date of the new rates will be on Monday Januari 18. We have chosen this date as for the period from 24 December 2020 up until 4 Januari our carrier was unable to provide shipping labels due to the shipping stop caused by the corona virus. As a consequence we have extended the use of the old rates for a period of 14 days. This way you can still place your order for the old shipping rate of £6,49 for orders under £35 and free for orders over that amount if you failed to do so before 31 December.

Why are the shipping costs going up?
UPS must import all parcels one by one into the UK. This means that they all have to be declared at customs and our carrier will charge extra for this.

But why are we all buying from Europe?
For me, Ribble has gone. Wiggle and Chain Reaction seem to have lost their top spots since they joined forces. Same products, same prices, most items out of stock and prices are no longer competitive. Merlin are still a good retailer and I use them regularly.

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Pantster | 3 years ago
2 likes

Bloody hell, now even bike24 are showing as not shipping to U.K.! It gets better and better. Keep winning!

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David9694 replied to Pantster | 3 years ago
1 like

https://www.bike-discount.de/en/info/information-for-our-uk-customers-327

£175 minimum order to the uk. Brexit - the gift that keeps on giving. 

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Sniffer replied to Pantster | 3 years ago
0 likes

I got an EM from Superstar components saying that they are not fulfilling orders to the EU due to complications from the Brexit agreement.

This trade stuff is going well at the moment isn't it?

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Xenophon2 | 3 years ago
5 likes

Brexit happened, cake and eating it etc etc.

BUT

Imho what the UK Gov is doing here is the ONLY way to do things and ensure that VAT will be collected at all.  They have the right idea, it's the EU who should emulate this for all third-country sales that are entering.  The seller or his platform register for VAT purposes, collect VAT and transfer it to the MS where the buyer lives.  Their registering the transaction generates a code which is printed on the label and can be checked.  No valid code:  seizure of the package.

In all other scenarios, the treasury gets robbed blind and domestic sellers face an insurmountable disadvantage because the goods will simply be sold without VAT, through a seller who goes 'missing trader' after a couple of months, undervalued so as to abuse all kinds of low value consignment relief rules (Chinese speciality) etc.

So although I'm glad to be finally shot of the UK and continue to believe that with leaders like Boris you're in for a rough ride, someone had a moment of clarity there.

 

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rookybiker | 3 years ago
1 like

When buying online within the EU the retailer automatically applies the VAT of the country of delivery rather than the VAT of the retailer's country. It has been so for a few years already, at least with the larger retailers. Therefore tax collection in one country on behalf of another already happens within the UE. My understanding is that retailers report to their respective tax authorities and VAT clearance is then settled in aggregate between nations (rather than each retailer answering sale-by-sale to twenty-six foreign tax authorities, which would be bonkers).

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Mungecrundle | 3 years ago
4 likes

If one supplier exits the market, another may see the opportunity to fill that gap. The one thing that is sure as shite is that any additional costs will eventually be picked up by the customer.

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kil0ran | 3 years ago
4 likes

I've been buying online long enough to remember the days of the single market without close alignment of VAT rates between the member countries. It always created distortions - for example, at the turn of the century Holland had preferential taxation on new cars and so there are a ton of Dutch imports around from that era. And from memory it was cheaper for a while to buy electronics from Germany rather than in the UK. There were also companies exploiting taxation rules for the Channel Islands and Isle of Man - remember Play247? That's still going on - recently bought some dirt cheap SD cards from a company in the IoM. Point is, retailers will find a way to game the taxation system to offer lower prices on commodity goods, because online trade is largely frictionless (price first, then returns policy, then convenience is what governs where you buy).

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BIRMINGHAMisaDUMP | 3 years ago
9 likes

We returned to Paris yesterday. We all have EU passports except my daughter who still travels on her UK passport. (She is an EU citizen but we haven't got around to getting her passport) Anyway we all sailed through French border checks at St Pancras except my daughter who was stopped and asked to explain why she was going to France and for how long. We had to produce evidence (which we had prepared for) as to her reason to travel to France. Her passport was then stamped with a warning that if she outstays her permitted stay she will be 'illegal'. (She is 10 years old) On the train, as we approached Paris, the carriages started to fill with on-board Customs Police. Everyone was asked what they were carrying etc and some people had their baggage checked. It was great. It was like being back in the 1970s. Can't wait to return to London and get the full UK Border Force treatment - probably get called a 'w+g' or 'paddy' or similar just to add to the authenticiticy. 

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grOg replied to BIRMINGHAMisaDUMP | 3 years ago
0 likes

Maybe feel a dose of national pride that Brits are getting special treatment..

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kil0ran | 3 years ago
6 likes

Over the summer the only places with good parts stock were the DE retailers (Bikester, BikeDiscount, etc.) If that continues, expect higher prices here and longer delivery times - time to stock up on cassettes and chains perhaps.

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yupiteru | 3 years ago
6 likes

It is all project fear I tell you - yeah right sure it.  This is just the tip of the rather large iceberg we are just about to crash into.

we (some of us!) voted for it so we have only ourselves to blame.

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andy_schweiz | 3 years ago
4 likes

This is the same rule that Switzerland implemented in 2018. The only downside was that Amazon.com stopped shipping to Switzerland but we can still order from the .de and .co.uk sites. The huge benefit is that Swiss VAT is already paid at pirchade so the post and courier companies can't charge you the crazily expensive import admin fee to add do the import and you get no nasty surprises. TBH, it's the best thing to happen with respect to buying mail order from the EU to Switzerland.

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winstonpushbike | 3 years ago
5 likes

Article neglects to mention the Netherlands has near identical rules:

"Supplying to private individuals or foreign entrepreneurs
Do you supply goods to private individuals or other foreign entrepreneurs in the Netherlands? Then you must charge VAT. You are also required to file a VAT return in the Netherlands. In order to do so, you must register yourself with the Netherlands Tax and Customs Administration."

Now the complainant could be excused for not knowing this as they are within the Netherlands, however I'm sure they sell to Germany which also has similar rules, so the concept shouldn't be new to them.

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Sriracha replied to winstonpushbike | 3 years ago
0 likes

Yes, it is strange how the detail gets neglected in all the banging of drums. See also how it all works within the EU:
https://europa.eu/youreurope/business/taxation/vat/cross-border-vat/inde...

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Sarden replied to winstonpushbike | 3 years ago
3 likes
winstonpushbike wrote:

however I'm sure they sell to Germany which also has similar rules, so the concept shouldn't be new to them.

You're misunderstanding. Inside the EU, each country has a threshold that has to be reached before you as a foreign company need to register for VAT in that country. In both The Netherlands and Germany the threshold is 100,000€.

So a Dutch shop can sell goods to German customers amounting to 99,999€ before they would need to register for VAT in Germany. If you are a German customer buying from that shop, you simply pay Dutch VAT (21%) instead of German VAT (19%) on your order.

It hardly makes any difference to you as a German customer, and it makes life a lot easier for that Dutch shop, as all the German orders need no special VAT declaration, but are simply bundled with all the regular, Dutch orders. 

The same goes for orders the Dutch shop ships to other EU countries. As long as they are below that (relatively generous) threshold in each country, only Dutch VAT needs to be collected and accounted for. Simple.

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Sriracha replied to Sarden | 3 years ago
0 likes

Indeed, and you have alighted upon the two outliers. Every other member of the Single Currency has a threshold of €35,000.
https://www.avalara.com/vatlive/en/eu-vat-rules/distance-selling/distanc...

I understand there are plans to simplify the handling of distance-selling VAT within the EU to a "One Stop Shop" so retailers need only one accounting for all their EU VAT, which should make life easier.

But at the present, accounting for VAT separately for each country of export seems to be the norm, so I don't see what all the palava is about.

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grOg replied to Sarden | 3 years ago
0 likes

Well this company still ships to Australia, which requires ALL international purchases to have GST added to the purchase price by the seller, who then passes the tax to the Australian government; I suspect this company is engaging in a bit of Brexit bashing.

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velo_rouge | 3 years ago
0 likes

If you need dutch bike spares or indeed a new bike, hollandbikeshop.com & bikester.co.uk (Germany) is operating normally.

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Fluffed replied to velo_rouge | 3 years ago
7 likes

hollandbikeshop.com - We are temporarily unable to deliver orders to Great Britain. Bikestar not shipping to UK either.

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winstonpushbike replied to Fluffed | 3 years ago
1 like

Probably because a major courier companies have temporarily suspended sending packages to UK from Germany.....because of Corona.

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HarrogateSpa replied to winstonpushbike | 3 years ago
4 likes

It was you who voted Brexit. I claim my £5.

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Rik Mayals unde... replied to HarrogateSpa | 3 years ago
0 likes

Are you by any chance Spa Cycles? If so, please let me know, as I have been a customer of yours for many years.

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ktache replied to velo_rouge | 3 years ago
2 likes

There are much longer delivery times for Bikester.

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Sriracha replied to ktache | 3 years ago
0 likes
ktache wrote:

There are much longer delivery times for Bikester.

...which they attribute to Covid border issues. Let's not muddy the waters, eh?

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ktache replied to Sriracha | 3 years ago
1 like

Of course you missed this from the banner, I mean it's only at the top of the homepage...

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ktache replied to ktache | 3 years ago
0 likes

And every page I go to, but hey easy to miss...

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Sriracha replied to ktache | 3 years ago
0 likes
ktache wrote:

And every page I go to, but hey easy to miss...

Mea culpa. But in my defence, it is easy to miss - I don't see it at all. See full screen shot below. Neither do I see it on any other page.

Moreover, the closest the FAQ comes to specifically Brexit delays is this:
Will delivery of my package be delayed in case of a hard Brexit?

We expect significant delays with deliveries because of restrictions due to COVID-19. Additional delays are to be expected in case of a hard Brexit. Should your order take longer to arrive, we kindly ask for your patience and understanding.

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ktache replied to Sriracha | 3 years ago
0 likes

App vs Website I guess.

It was mentioned when I did an order before new year, as some have mentioned, they do have some stock that UK sites don't seem to do, I'm back on my Getting to Work Bike at the moment, and quality 8 speed and 26 inch stuff for my wonderful early 90s Marin Pine Mountain was required.

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