Mehring
Posts: 2179
Joined: 1/25/2007 Status: offline
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I export to Europe from UK, and from July 1st everything has turned into an indescribable mess for small business, particularly if you send low value packets. I stopped exports for the moment, and may have to close down until the UK facilitates domestic registration for IOSS (Import One Stop Shop) to manage EU taxes. If this is implemented- no date has been set- at least delivery delays, handling and "accounting" charges can be avoided, as well as the corporate scams below. VAT is chargeable on everything, physical and digital. You can't charge VAT at point of sale unless you have a means to pay it to the EU. Currently, this has to be done either through tax "representatives" in the EU who charge £thousands£ a year to register, various website integrations that cost loads to implement, or other "services" which are basically skimming small business profits for doing nothing. One of the cheaper options is Crossborderit. All these options add per transaction costs as well as set up or standing charge costs. A £17 product, non-VAT liable for domestic delivery, can cost £30 on delivery to EU, including handling and VAT. If Slitherine produced in the UK, it would still have to export to Netherlands and pay VAT on physical product. Not sure how digital would work, but if they're not already legally registered in the EU, it would add costs.
< Message edited by Mehring -- 7/30/2021 10:10:36 AM >
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“Old age is the most unexpected of all things that can happen to a man.” -Leon Trotsky
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