Errius wrote on 2021-09-29, 10:26:
It's 1972 again but with worse music.
And that was a year in which the second highest selling single in the UK was "Mouldy Old Dough" by Lieutenant Pigeon ( https://www.youtube.com/watch?v=aO5GWJJP3FM ), only beaten by the Royal Scots Dragoon Guards' version of Amazing Grace...
mR_Slug wrote on 2021-09-28, 20:50:
Curious to know what happens if someone sends you something to repair. You pay import tax on entry, then they pay import tax to get it back? I keep hearing about how wonderful globalization is from politicians, yet they screw you on import tax. If it's so wonderful why can't it just be zero. Also thinking about it. I think you are doubly taxed? You pay VAT/sales in the country to begin with, then tax again when you import it. And why does china get a free pass? Surely it should be the same for every country.
Ooh, I know a little bit about that. And it's sort of on topic. Look up Inward Processing Relief if you want a really boring and frustrating read. Customer sends thing to be repaired and when it enters the UK it's liable for any duty (depending on the customs code of the goods*) and VAT. But if it's being repaired and sent back then you can instead use the IPR process, where the duty+VAT bill is suspended for up to 6 months (with a 6 month extension on request). The bill is then cancelled when the goods leave the UK.
But... HMRC found too many people were forgetting to send the goods back out again, so effectively dodging taxes, which HMRC then had to chase up as unpaid bills. So they decided that even though the bill was suspended you still had to lodge payment with them, which you'd then get back when the goods left the UK.
Except they won't accept the deposit from small businesses/people. So it has to go through the shipping agent who actually handles the import process. They have a large deposit lodged with HMRC, and then charge you for the use of their deposit. Plus you have to make sure the shipping agent actually files the correct paperwork for both the import and export, otherwise HMRC can't tell that the goods have left, so you don't get the deposit back (and have still had to pay the agent). Net result being that it ends up being more hassle than it's worth.
Oh, and the customer at the other end has to jump through similar hoops (Outward Processing Relief) with their Customs people, otherwise they get to pay (or pass the charge back to the supplier) sales tax when the repaired goods re-enter their country.
We've gone and done reverse globalisation and made trade more difficult, particularly for the countries nearest us. The previous process within the EU was: thing broken, person send thing, thing repaired, thing sent back. Or even: thing broken, send replacement, replacement swapped in, broken thing sent back (IPR doesn't allow for this at all).
On the double taxation thing... As I understand it, if a seller is VAT registered then they don't (possibly shouldn't) charge VAT on sales leaving the UK, so the buyer only pays their local sales tax (and any import duties) when it gets imported to their country, so it's not (or shouldn't be) double taxed. Buying through intermediaries like ebay makes things complicated though.
* For hours of fun you can explore customs codes here https://www.trade-tariff.service.gov.uk/
You get to find entries such as:
4. Heading 8509 covers only the following electromechanical machines of the kind commonly used for domestic purposes:
(a) floor polishers, food grinders and mixers, and fruit or vegetable juice extractors, of any weight;
(b) other machines provided the weight of such machines does not exceed 20kg. The heading does not, however, apply to fans or ventilating or recycling hoods incorporating a fan, whether or not fitted with filters (heading 8414), centrifugal clothes-dryers (heading 8421), dishwashing machines (heading 8422), household washing machines (heading 8450), roller or other ironing machines (heading 8420 or 8451), sewing machines (heading 8452), electric scissors (heading 8467) or to electro-thermic appliances (heading 8516).
Marvel as to why there's a 2% duty on tuning forks (92099940) but 0% on musical box mechanisms (92099950), which are essentially a bunch of tuning forks. Unless you're in Northern Ireland, where it's 3.2% and 1.7%, but I think they can still trade at 0% within the EU.
Cry (or laugh) as you realise what we've re-inflicted upon ourselves.