AliExpress now charging VAT

[Clive S]

It seems like aliexpress is now charging VAT from the 1 Jan 2021 on all orders .

Then they have to pay it back to the UK Gov.

Has anybody else seen this? I could be wrong of course :surprise:

29362

[MetalMagus]

I saw on another forum that it is anything shipped into the UK under £135 total value. The VAT has to be done by the supplier. Hence a lot of them are refusing to ship to the UK as they don't want the hassle or the paper work to collect tax for the UK tax man.

[Mister880]

I just bought something from Cloudray laser and they didn't charge VAT at source but it was added upon arrival, as well as duty :-(. I was hoping it would slip through the net but it wasn't to be.
Interestingly enough, when looking at their site and adding stuff to the basket, some items have a tax added but some don't. It didn't occur to me at the time that it might be VAT. It just said 'tax' nothing more. I'll go back in and see if the tax amount equals 20%.

[Gary]

This is a direct consequence of foreign suppliers, stating the wrong VAT value and defrauding HMRC of VAT revenue.
As well as Defrauding HMRC, it also puts a lot of pressure on UK companies who are already at a disadvantage.


I just bought something from Cloudray laser and they didn't charge VAT at source but it was added upon arrival, as well as duty :-(. I was hoping it would slip through the net but it wasn't to be.
Interestingly enough, when looking at their site and adding stuff to the basket, some items have a tax added but some don't. It didn't occur to me at the time that it might be VAT. It just said 'tax' nothing more. I'll go back in and see if the tax amount equals 20%.

[m_c]

Having to charge VAT at source is coming in for all EU countries on the 1st of July, it's just the UK has already implemented it as part of Brexit.

https://www.pwc.ch/en/insights/tax/new-ecommerce-eu-vat-rules-july-2021.html

The days of evading tax on imports is coming to an end.

[Kitwn]

Same thing happened here in Australia a while back. We used to get overseas orders under $1000 free of GST (Aussie VAT) but not any more. In theory it helps local suppliers compete which is fair enough. There were some companies that stopped sending stuff to Aus for a while but I think everyone got themselves organised eventually.

[cropwell]

There seems to be a limit of £18, below which is not liable for VAT and Import Duty. Unfortunately, this was abused by suppliers understating the value of goods. If the VAT is paid by the supplier, it avoids the VAT collection administration fees and forwarding fees that carriers like Royal Mail and UPS add on. This has to be paid before delivery is completed and can be up to £30 for even a small value order that HMRC has arbitrarily determined to be above the lower limit. (Apparently £15 NOT £18)


Revision

The 1 January 2021 UK B2C ecommerce and marketplace reforms will include: All imported goods purchased are subject to VAT – ending the £15 VAT exemption thresholds, known as Low-Value Consignment Stock relief. Imported consignments of goods not exceeding £135 are subject to sales (supply) VAT instead of import VAT.

https://www.avalara.com/vatlive/en/vat-news/uk-post-brexit-vat-on-e-commerce-b2c-imports.html#:~:text=The%201%20January%202021%20UK ,VAT%20instead%20of%20import%20VAT.

[cropwell]

Just made a small Ali-express order for some connectors and 20% VAT was added.

[Eatonm62]

I came across this because I was waiting to put an order in with Prusa. Anyway this is the message you get with Aliexpress.

From 11PM 31 December 2020, AliExpress is required by law to collect UK Value-Added Tax (VAT) at the applicable rate and remit to the UK tax authority when goods are sold to UK customers (i) where the goods are located outside the UK at the point of sale with a consignment value of GBP135 or less, or (ii) where the goods are in the UK at the point of sale, but sold by an overseas seller. For more information, please visit: https://www.gov.uk/guidance/vat-and-overseas-goods-sold-to-customers-in-great-britain-using-online-marketplaces-from-1-january-2021

[cropwell]

This actully works to our advantage for goods over £18 and less than £135 as AliExpress acts as the VAT collection agent not Royal Mail, UPS DPD etc... Because they charge for the service at silly rates.

[JAZZCNC]

As far as I understand VAT is a Value Added Tax? I don't really want to pay taxes that will eventually go to the state. Do you think there may be a way to bypass the VAT payment, or is it really 100% mandatory for everyone?

You don't have a choice, it's the law in UK and most other country's I would imagine that VAT is added unless it's in the None VAT category which is mostly health-related, certainly not machine tools or components. Often the shipping agent won't release the goods until the VAT and any customs charges are paid.

On smaller items, the VAT will be added at source ie: Aliexpress, eBay, etc and they pass on the VAT to the Revenue and Customs.

So it's just a case of bend over and take it I'm afraid.!:thumbdown:

[dazp1976]

This actully works to our advantage for goods over £18 and less than £135 as AliExpress acts as the VAT collection agent not Royal Mail, UPS DPD etc... Because they charge for the service at silly rates.

It doesn't make any difference to an individual buyer.
VAT and import tax are 2 different things.
I've had one out of twenty items caught out this year.
The one caught was my modbus cable and driver disc for a servo. Came via dhl.
Paid the vat at Ali, then a tax on entry to dhl.
https://www.aliexpress.com/item/4000185976627.html
I weren't too bothered about it though as I did factor the cost in first. I saved a packed on the servo drive/motor system itself originally, so I could write it off. (yes I know. I should've remembered the cable etc when I ordered the drive!!!!).

All royal mail stuff get through so far.

[dazp1976]

You don't have a choice, it's the law in UK and most other country's I would imagine that VAT is added unless it's in the None VAT category which is mostly health-related, certainly not machine tools or components. Often the shipping agent won't release the goods until the VAT and any customs charges are paid.

On smaller items, the VAT will be added at source ie: Aliexpress, eBay, etc and they pass on the VAT to the Revenue and Customs.

So it's just a case of bend over and take it I'm afraid.!:thumbdown:

As long as the item still works out cheaper from Ali.... who cares!!
Tbh. Most of the stuff we get for the kit we use is either:
1. Not a chance it's available in the u.k.
2. It costs a minimum of 4 times the price.

I've just ordered a specific 12 channel isolation board from Ali for direct connection to port 5 inputs on a uc300eth.
Didn't even bother looking in uk.

[cropwell]

It doesn't make any difference to an individual buyer.
VAT and import tax are 2 different things.


I believe my original beef was about the ridiculous fees that forwarding agents charge to handle any tax or VAT. Now the VAT on goods <£135 is collected at source and Fedex, UPS and DHL etc. no longer have this lucrative source of income. The disadvantage is that we no longer get away with tax free import of small items - Hey Ho!

[dazp1976]

I believe my original beef was about the ridiculous fees that forwarding agents charge to handle any tax or VAT. Now the VAT on goods <£135 is collected at source and Fedex, UPS and DHL etc. no longer have this lucrative source of income. The disadvantage is that we no longer get away with tax free import of small items - Hey Ho!

I need to make an enquiry then.

Back in March.
I ordered from Ali usd26.50 - paid the vat on top.
Then a few days later got email link from dhl.
Paid the import tax AND the con handling fee to them.

According to you this don't happen?.

[cropwell]

According to you this don't happen?.

Unfortunately, the mechanism for it happening is still there for goods with an intrinsic value over £15 and less than £135. Most of the time HMRC can't be arsed with small values. As they automatically get the VAT for low value personal imports, they are generally satisfied with that. I think you were unlucky (maybe the Customs Officer had a row with his partner and was in a bad mood). I have had imports of $150 without any duty and also goods worth £8 that were subject to the DHL con (I didn't pay it and they returned the goods and I got a refund). Both of these were before the collection of VAT at source. Now, because the VAT is already paid, most small value goods are just let through. You are more likely to trigger DHL involvement if you go for fast delivery options.

[dazp1976]

Unfortunately, the mechanism for it happening is still there for goods with an intrinsic value over £15 and less than £135. Most of the time HMRC can't be arsed with small values. As they automatically get the VAT for low value personal imports, they are generally satisfied with that. I think you were unlucky (maybe the Customs Officer had a row with his partner and was in a bad mood). I have had imports of $150 without any duty and also goods worth £8 that were subject to the DHL con (I didn't pay it and they returned the goods and I got a refund). Both of these were before the collection of VAT at source. Now, because the VAT is already paid, most small value goods are just let through. You are more likely to trigger DHL involvement if you go for fast delivery options.

I didn't have a choice on delivery options with that one.
It's outlandish how we get ripped off in the uk tbf.
It's all bollox!

Have another £80 worth of small bits arriving either this/next week. Fingers crossed :rolleyes:
Not too concerned though. Some not avail in uk at all (or ever will), and the bits I could get here... I've likely saved £70 off.

[Fivetide]

What makes me laugh are the idiots who pay 3 x more for something that's drop shipped from China and could get it same speed but cheaper direct from AliEx

[routercnc]

About a week ago I ordered some parts from BST Automation on Ali Express at a cost of 96 USD. At the checkout this appeared as 115.20 USD (which is 96 x 1.2) so they have added the VAT.

It is a custom order so it's not due for shipping until this weekend/early next week so I'll report back what happens when it arrives.

[Kitwn]

VAT is 20% now?! There are so many reasons I'm glad I left the UK. Soon as you can everybody, relocate to Tasmania. Western Australia is OK too. Victoria and New South Wales are too expensive and too crowded (though not compared to southern England!) and Queensland and the Northern Territory are too humid in summer.

Ducking hurriedly to avoid the flak,

Kit

[dazp1976]

VAT is 20% now?! There are so many reasons I'm glad I left the UK. Soon as you can everybody, relocate to Tasmania. Western Australia is OK too. Victoria and New South Wales are too expensive and too crowded (though not compared to southern England!) and Queensland and the Northern Territory are too humid in summer.

Ducking hurriedly to avoid the flak,

Kit

If I had the money mate, I would.
I expect some signs to go up in uk arrivals in a few years reading.....

'Welcome to mini China'.

[Kitwn]

If I had the money mate, I would.
I expect some signs to go up in uk arrivals in a few years reading.....

'Welcome to mini China'.

Australia's pretty heavily tied to China, though we're having some arguments with them at the moment which may well have resulted in more cheap wine on your shelves.

[dazp1976]

Australia's pretty heavily tied to China, though we're having some arguments with them at the moment which may well have resulted in more cheap wine on your shelves.

Ah yes but doesn't Aus pride itself on a work/life balance ethic?.
There's no way they'd take on any of China's slave policies.

UK on the other hand would/will likely adopt ANY bad policies from ANY country if it was a condition of a trade related deal.


Anywho. 2 of my Aliex orders just arrived no problem via RM.
1 of them cost me £3.68 and it was in a small parcel sized box.
It would cost me that just to post it in the uk?????!!!!!!.
Madness! :rolleyes:

[cropwell]

https://www.simplyduty.com/import-calculator/

[Kitwn]

Ah yes but doesn't Aus pride itself on a work/life balance ethic?.
There's no way they'd take on any of China's slave policies.

That's the traditional view, built during an era when the government's prime aim was full employment (not the fake-news "full employment" that governments talk about now), when unemployment rising to 2% was shocking headline news. People here now have the same work and financial pressures as the UK.

Best not to get me started on this subject Stick to machines and what to make with them :cool:

Kit

PS We do have better weather though and there are plenty of places to enjoy it on your day's off without queuing in traffic for 3 hours. Australia is still the best place on Earth for an English-speaking native in my view.

[ExortPolt]

Hey guys. Actually, I agree with cropwell. This situation works well for us. Btw, do they still charge for it? Actually, the last time I've ordered smth on AliExpress was last year, and I'm not aware of the current situation. Tbh, I used to order a lot of things from there. I'd say I even had a small business. I can't tell exactly what I was selling, but I had a nice income. I even used a free pay stub generator (https://www.thepaystubs.com/) to track my income and expenses. Anyway, now it's my wife's business because I don't have enough time to run it. So, gentlemen, keep this topic updated.

[cropwell]

It is still the same in UK.