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Check the small print...

UK customers are being advised to check the small print to ensure they don't get an unexpected financial hit from post Brexit purchases.

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  Customers are being advised to carefully read the full terms and conditions on purchases.

UK customers are being reminded to consider the full VAT implications of purchasing goods from outside the UK especially in respect to on-line purchases.

Changes

It follows changes in the treatment of VAT (Value Added Tax) since the UK left the European Union to ensure that goods from EU and non-EU countries are treated in the same way, and that UK businesses are not disadvantaged by competition from VAT free imports.

It has been brought in to improve the effectiveness of VAT collection on imported goods and to address the problem of overseas sellers failing to pay the right amount of VAT on sales of goods that are already in the UK at the point of sale.

All EU based retailers sending parcels to the UK now have to fill out customs declaration forms, and customers may also have to pay customs or VAT (Value Added Tax) charges, depending on the value of the products and the destination of the order.

Confusion

Confusion over the new arrangements has already seen a number of UK customers purchase goods from outside the UK in the belief that it was saving them a great deal of money in comparison to purchasing the same item direct from a UK retailer.

However, many have found that they are then liable to pay VAT (sometimes twice) and additional costs, making the item more expensive than if they purchased it direct from a UK retailer.

It is understood that orders of £135 or below will include VAT (ie. point of sale) but can still incur a shipping and handling fee on top to be potentially paid by the customer.

Above this figure and the retailer will have to add the VAT to the primary advertised net cost (and to inform the customer), plus any additional fees and shipping costs — a potential addition of (20%) plus a government charge for the processing of paperwork of around 2.5% and courier cost to be included or paid separately on delivery.

Confusion over the new arrangements has already seen a number of UK customers purchase goods from outside the UK in the belief that it was saving them a great deal of money4BR

Complications

At present retailers are working out how to accommodate the new rules with further complications surrounding goods to Northern Ireland.

Customers are being advised to read the small print carefully in respect to any purchase made outside the UK as the process is still under continued examination and may be subject to further changes.

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