Shipping to EU problems

19 July, 2021 0 comments Leave a comment

Brexit really kicked in for us on 1st July when we had to stop offering delivery to EU countries. We are so sorry that this had to happen, and are sad for the many customers we had built up over the years, particularly in Ireland and France.

From 1st July 2021 all goods sold from UK to an EU country are subject to local taxes as well as customs duties. (Prior to this date, there was a threshold.) This is demanded (of the customer) by the receiving country prior to delivery, leading to extra costs for the customer as well as inevitable delays. The customs fees can be particularly high (so we have heard), sometimes doubling the original purchase price.

There was a scheme set up to deal with this - the IOSS scheme. This allowed companies to register to collect EU tax at the point of sale and then pay the taxes due to the EU, by registering and joining the IOSS scheme in any EU country. Once this was done, delivery would be as normal without extra fees or delays. We had tried to register for this scheme by applying to join in Ireland. Frustratingly, UK companies are not allowed to register without the use of a tax intermediary. Sadly, the cost of a tax intermediary makes sending to the EU unviable - we would be making a loss to continue.

Apparently, there is some negotiating going on that might allow companies to register and pay EU taxes directly, without the use of a tax intermediary. We hope this might happen in the future. Otherwise small online companies such as ourselves are stuck in a catch 22 situation. So sorry.




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