Some online sales companies are reporting that they do not ship to the UK due to tax changes brought about by Brexit.
We are forced by British policy to stop doing business with British customers ”, writes the Dutch company specializing in bicycle parts Dutch Bike Bits. This company has published on its website the information that it can ship orders to all countries in the world, except the United Kingdom. The Belgian Beer On Web also follows the same behavior, referring to “the Brexit measures” as a justification for stopping supply to this market.
The BBC points out that many companies are dissatisfied with Brexit, which has brought an increase in costs and bureaucratic burdens when they want to do business with British customers. For now, the number of companies that simply do not send orders to that territory is uncertain.
One of the main changes is related to the place where VAT is collected, which happens to be at the point of sale and not at the point of import, which, in practice, means that retailers who are sending products to the United Kingdom must register for British VAT and account for it if the sale value is less than € 150 (£ 135). A government spokesman says that this measure intends to ascertain the correct amount of this tax and will allow for an inflow of £ 300 million annually. “The new model ensures that goods from EU and non-EU countries are treated in the same way and that UK companies are not at a disadvantage compared to rivals,” says the same official source.
Adam French, consumer rights specialist at Which ?, reinforces that “it is vital for the government to clarify to consumers and traders what changes result from Brexit and how this is reflected in the way they shop. It must also work to ensure that UK consumers maintain access to a range of quality products at competitive prices ”.
Dutch Bike Bits clarifies on its website that the British authorities want all companies in the world to pay a fee to place goods in that market, which will be unaffordable if all countries in the world have the same idea: “If all countries decide to do the even then, we will have to pay fees in 195 countries every year, be aware of tax changes in 195 countries, keep accounts in 195 countries and submit payments in 195 different countries ”. The company encourages its British customers to complain to political representatives to have the situation reviewed.