English Chess Forum

Does anybody know if there are extra charges / taxes if purchasing from "New in Chess" post BREXIT?

Probably, there's an article on the BBC which might help explain

Hi Paul

I think that you will find an additional charge of 20% VAT on your invoice. This will apply to all EU goods sold into the UK post 1 January. For high value goods (over £135), there will, I think, be import duties as well. See

https://www.gov.uk/guidance/vat-and-ove ... -in-the-uk

as a starting point.

Assuming it's a low value purchase, I thought that prior to the UK leaving the EU the seller was responsible for paying VAT levied by the country you're buying from, so they'd pass that cost on to you. Now, they're responsible for paying UK VAT, so they'll pass that cost on to you.

So the result is that the seller is paying VAT to a different country and the rate may be different. The seller won't be liable for both local VAT and UK VAT, so they shouldn't be charging you for both.

Ian Thompson wrote: ↑

Tue Jan 26, 2021 11:35 am

Now, they're responsible for paying UK VAT, so they'll pass that cost on to you.

Surely books and magazines are zero rated for UK VAT.

But books and magazines are exempt from VAT, so unless I have missed something ...

I just completed a purchase on the New in Chess site up to but not including pressing the final button and there were no additional charges except for packaging.

"Surely books and magazines are zero rated for UK VAT."

Yes - it's confusing as we just followed EU for VAT (as we had to). Brexit is an opportunity to go back to the old Purchase Tax, but so far we are going with a UK VAT.

BBC ha been running some "why oh why" comments on people being surprised that their imports are attracting VAT etc., which suggests that the "Remain" side didn't hammer home that point before the vote. I assumed everyone voting for Brexit was happy for costs to go up, as they always do after any change.

Edited as online books are currently zero-rated for VAT, which doesn't mean they will stay zero-rated. "Zero rated" is not the same as being exempt...

https://www.gov.uk/government/news/vat- ... blications

John Moore wrote: ↑

Tue Jan 26, 2021 11:42 am

But books and magazines are exempt from VAT, so unless I have missed something ...

That New in Chess sell many things that are not books or magazines?

A helpful article from the Guardian:-

https://www.theguardian.com/money/2021/ ... ave-to-pay

Sure, Ian, and many of those items will, no doubt, be subject to VAT at 20% and, possibly, other charges. There is a link within the Guardian article to the various different rates of duty.

EBay, unfortunately, don't seem to have got it right. They (not the sellers) are collecting VAT on small items (below £135) imported from the EU, but they also seem to be including books in this.

Kevin Thurlow wrote: ↑

Tue Jan 26, 2021 12:11 pm

Yes - it's confusing as we just followed EU for VAT (as we had to). Brexit is an opportunity to go back to the old Purchase Tax, but so far we are going with a UK VAT.

The EU had a rule that once VAT had been imposed on a product, even as long ago as 1973, you couldn't remove it even if social and political attitudes had changed and the measure had 100% support in parliament.

It may have been a hidden bonuses for chess backk in 1973 that VAT at 10% replaced purchase tax at a much higher rate. Certainly on clocks, not sure about boards and sets.

The price of Chess Informants (I have a standing order for 4 a year) appears to have leapt up as well, presumably this is related.

"EBay, unfortunately, don't seem to have got it right. They (not the sellers) are collecting VAT on small items (below £135) imported from the EU, but they also seem to be including books in this."

That should be challenged, to see if it's an honest mistake. If they attempt justification, then at least that gives more information. VAT rules have always been complicated.