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Dutch bike part dealer shipping to every country in the world except UK because of Brexit VAT change

Boldly gone – e-commerce issue was identified by William Shatner in October

Online bike parts retailer Dutch Bike Bits has announced that with the advent of Brexit, the UK will become the only country in the world to which it will not ship goods. The firm explained that this was because the UK is now asking overseas firms to apply and collect British taxes on behalf of the British government when selling to UK customers.

From January 1, the government introduced a new model for the VAT treatment of goods arriving into Great Britain from outside of the UK.

It says these measures ensure that goods from EU and non-EU countries are treated in the same way and will mean UK businesses are not disadvantaged by competition from VAT-free imports.

The point at which VAT is collected has moved from the point of importation to the point of sale and online retailers are therefore being asked to register for UK VAT and account for VAT to HMRC.

Dutch Bike Bits said that for this service the UK government intends to charge a fee, “to every company in the world in every country in the world which exports to the UK.

 

 

“Clearly this is ludicrous for one country, but imagine if every country in the world had the same idea. If every country decided to behave in the same way then we would have to pay 195 fees every year, keep up with the changes in taxation law for 195 different countries, keep accounts on behalf of 195 different countries and submit payments to 195 tax offices in 195 different countries, and jump through whatever hoops were required to prove that we were doing all of this honestly and without any error.

“Therefore from mid December 2020 onward we ship to every country in the world... except the UK.”

Somewhat bizarrely, the issue was flagged by William Shatner back in October.

It sounds like the William Shatner Store won’t be shipping to the UK any more either.

 

 

The EU will introduce similar rules in July – albeit these will of course cover 27 countries and not just one.

Late last month, Canyon announced that it was pausing shipments to customers in Great Britain and would stop accepting orders entirely from those in Northern Ireland, citing uncertainty caused by Brexit.

The company, headquartered in Germany, said that the move was a temporary one and that it would resume deliveries after January 11 once the situation became clearer.

Alex has written for more cricket publications than the rest of the road.cc team combined. Despite the apparent evidence of this picture, he doesn't especially like cake.

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77 comments

Avatar
Rick_Rude | 3 years ago
4 likes

Can't be a great amount of business they're losing otherwise they'd do something about it other than not doing anything. 

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HoarseMann | 3 years ago
1 like

That's a shame, I've bought a few things over the years from DBB and enjoy reading his 'view from the bike path' blog.

I imagine the owner, as an expat Brit, finds the added complexities Brexit brings to his life unwelcome. However, this just seems to be a bit of added admin that is annoying, but not too difficult to overcome.

Dutch VAT is actually slightly higher (21% vs 20% in the UK), so there ought to be room to recover the admin costs without affecting prices too much.

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Sam3 replied to HoarseMann | 3 years ago
0 likes

1% of a retail sale is not likely to cover ADDITIONAL transaction costs of managing tax for another country, over an above the taxation admin overhead of the country the retailer is based in.

The obvious natural outcome here is British consumers will:

- buy more from British-focused retailers (some of which will be the bigger EU-based ones)

- which will be a smaller set of retailers, reducing the market distribution of many of the specialist/smaller scale brands

- in return for higher prices, given an inevitable reduction in number of retailers that British consumers have available to chose from and the addition of one more layer of markup for smaller brands

Unfortunately my conclusion from this is your politicians are taking British backwards in time, at a point where many countries are moving forward. but that is the underlying point of Brexit isn't it: better domestic exploitation of your own people? The term "rip-off Britian" comes to mind here, from many years ago when I lived in the UK

I say this BTW as a consumer now living in an EEA country that has in recent years greatly benefited from improved harmonisation of VAT collection procedures from online retailers in the EA. You're being taken where we just came from, and are grateful for having escaped from. Scandalous really.

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srchar | 3 years ago
6 likes

I felt a couple of points here needed to be clarified, because road.cc don't seem interested in finding out what the true situation is, preferring to quote an incorrect statement from a Dutch retailer's shipping policy, and a wildly inaccurate figure from William Shatner's twitter feed:

  • The UK government does not charge a fee for VAT registration.
  • The "additional documentation" for most companies will be a quarterly VAT return. It is likely that this will have to be submitted to HMRC using a Making Tax Digital compliant software provider. There are several free solutions and many paid solutions, though I don't know of one that costs the £1,000 annually quoted by Shatner. I use one that costs £13 annually per business.
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Zjtm231 replied to srchar | 3 years ago
4 likes

Hey! Don'tet the facts get in the way of a juicy anti Brexit story!

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brooksby replied to Zjtm231 | 3 years ago
8 likes
Zjtm231 wrote:

Hey! Don'tet the facts get in the way of a juicy anti Brexit story!

Only seems fair - the pro Brexit campaign wasn't exactly famous for its adherence to the truth, was it? 

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HarrogateSpa replied to Zjtm231 | 3 years ago
10 likes

Brexiters haver never been the slightest bit interested in facts, just lies and propaganda.

If we all close our eyes and believe, that border in the Irish Sea will disappear, I'm sure, because Johnson said it doesn't exist.

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Rik Mayals unde... replied to HarrogateSpa | 3 years ago
2 likes

'Brexiters haver never been the slightest bit interested in facts, just lies and propaganda.' 

...Just like remainers. Remainers have, by and large, been rude, obnoxious, and spouted facts and lies, whilst calling Brexiters thick and uneducated racists. There were lies on both sides. Whichever way we all voted, the result was democratic, and we should all put aside petty name calling, and get together to back our country, Great Britain. In recent years, anyone who is patriotic has been branded a right wing racist by the woke generation. We holiday in Switzerland regularly and have done for decades, everywhere you travel there, you will see the Swiss flag. Homes, hotels, even tiny restaurant shacks high above villages such as Zermatt and Saas-Fee, you will see the Swiss flag proudly flown, yet if someone flew the flag of St. George, for example, they would be denounced as a sweaty vest wearing right wing gammon. It saddens me what this wonderful country has descended into. It is a wonderful country, ruined by people. 

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kitsunegari replied to Rik Mayals underpants | 3 years ago
0 likes
biker phil wrote:

Whichever way we all voted, the result was democratic, and we should all put aside petty name calling, and get together to back our country, Great Britain.

Why? Not the name calling bit, the backing our country bit? Nationalism can be a dangerous thing, and sorry if you don't like it but I'm European first, British second. I'd rather focus on tearing down borders rather than putting them up.

The point of democracy as you call it means we have the right to disagree.

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TheBillder replied to kitsunegari | 3 years ago
1 like

He's also forgotten Northern Ireland. Which is not in Great Britain. Something similar seems to have happened in the minds of Brexiters for a while.

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ktache replied to TheBillder | 3 years ago
1 like

And not forgetting that NI is slightly less part of the UK now...

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Hirsute replied to ktache | 3 years ago
0 likes

Just had a request at work to update our VAT registration number.

If you move or sell goods from NI, then you need to have XI at the beginning of the vat reg for EU sales.

 

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grOg replied to ktache | 3 years ago
0 likes

slightly different to the rest of the U.K. but not slightly less U.K.

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grOg replied to Rik Mayals underpants | 3 years ago
0 likes

well said that man.. schools seem to be indoctrinating students to think they are global citizens and that nationalism is akin to facism; IMO, the tweet from the dutch business is intended to be a politically motivated anti- Brexit jibe.

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Philh68 | 3 years ago
6 likes

Not sure what the problem is here, they ship to Australia which also requires registration and collecting value added tax at the point of sale. They're probably only using the simplified registration, but that still requires registering for identification as well as registering for the tax. If their sales exceed $75k a yr then they have to register as an Australian business and have standard tax registration. In terms of the regulatory environment, the UK doesn't seem too different.

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Zjtm231 replied to Philh68 | 3 years ago
3 likes

Yes but Brexit

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Philh68 replied to Zjtm231 | 3 years ago
4 likes

When Australia introduced it in 2018, Amazon went and sulked in a corner for a while. Then they realised how much trade they were losing because they arrogantly thought they could bully the government, gave in and complied. It will be the same in the UK with these online retailers. They've had a good run but it was inevitable that countries would act to close tax loopholes. Nobody is forcing them to trade in these countries.

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HarrogateSpa replied to Zjtm231 | 3 years ago
8 likes

It doesn't matter if a similar situation pertains in Australia - it is a extra unnecessary cost and admin as a result of Brexit, and that can't be denied even by Brexit voters with an agenda.

I posted a calendar to friends in France yesterday, and had to fill out a Customs Declaration. Also the price had gone up from £5.10 in 2020 to £7.80 in 2021 - a 53% increase.

I don't remember anything about extra paperwork and making people poorer in Vote Leave propaganda, or the Tories 2019 GE manifesto.

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grOg replied to HarrogateSpa | 3 years ago
0 likes

So Britain is off the EU gravy train.. enjoy the independence.

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Kapelmuur | 3 years ago
10 likes

Not cycling, but DVDs my daughter bought from France in December cost £20, if ordered now the price is £30.

Extra cost attributed to "documentation".

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Rich_cb | 3 years ago
6 likes

I think the target of these new rules are the low value importers (under £15) who were previously VAT exempt while their UK based competitors still had to apply VAT.

Shops can avoid any registration charges to UK government by using a portal like Etsy, eBay etc but the VAT will still be payable.

This will actually benefit UK bike shops who previously were undercut by the VAT exemption. It will also help fund public services.

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Awavey replied to Rich_cb | 3 years ago
4 likes

exactly, countries like Australia and the US already do this so this Dutch firm would have to register in exactly the same way if it wanted to ship goods there, every US retailer I know who ships stuff to the UK/EU has been aware this VAT change was happening for the best part of a year and had already started to price it in.

So its not a Brexit thing, it was actually an EU ruling the UK would have had to adopt anyway if it were part of the EU still, the EU simply delayed their implementation 6months because of Covid to give their member states more time to do it.

the difference not being in the EU makes is this Dutch firm has to register on the UK portal now, as well as the EU portal, as well as any other country in the European continent or around the world it wants to sell to who have adopted this change.

theres a cost associated to that registration, which is why they are really complaining about it, but you balance that extra cost out to your customers in those countries, thats the business sense thing to do, thats what the vast majority of businesses will do or have already done.

my guess is this Dutch firm barely sells any bike parts to the UK, certainly my first port of call is not to google around Holland for bike bits, and so it doesnt cost in for them on the amount of UK business they have, to register on the UK portal, hence they cant sell bits to the UK anymore.

but that is fine, thats their choice surely ? and they should be able to freely admit that its a business decision, instead of trying to blame Brexit.

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Doctor Fegg replied to Awavey | 3 years ago
10 likes

"my guess is this Dutch firm barely sells any bike parts to the UK, certainly my first port of call is not to google around Holland for bike bits"

Your guess is wrong.

Dutch Bike Bits describe themselves as "Tried and trusted parts for Dutch Bicycles, or bicycles that would like to be a bit more Dutch". They're not a Dutch version of Wiggle. They're a retailer that specialises in parts for utility bicycles of the sort that the Dutch do so well.

If you have a bakfiets - and as a stroll around Cambridge or Oxford in non-pandemic times would show you, plenty of people in the UK do - then retailers like Dutch Bike Bits and Hollandbikeshop are invaluable. I've ordered from them several times - the child seat mounting for our cargo bike, for example - and I know others who have.

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matthewn5 replied to Doctor Fegg | 3 years ago
4 likes

Me too, they were good for things like NOS quill stems and the like.

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bobrayner | 3 years ago
2 likes

Strangely enough, there's a French bike-parts business which has taken the opposite approach; XXcycle appear to charge zero VAT for UK customers. I suspect that this is not the correct approach, but the changes to VAT rules have been confusing and last-minute so it's inevitable that some people will get it wrong.

Maybe customers will get a nasty surprise and some extra costs when their parcel of cheap bike parts is held up at the border...

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eburtthebike | 3 years ago
13 likes

Brexit; the gift that keeps giving.  Even when you don't want it to.

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Pantster | 3 years ago
8 likes

just the tip of the iceberg, wait for more and more companies to apply this, and I can't blame them. 

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Fluffed replied to Pantster | 3 years ago
3 likes

Add bike-discount.de & Bikester.co.uk (ironic url) to the list already

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Sriracha | 3 years ago
0 likes

Who benefitted from the VAT component of the price paid previously?

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Hirsute replied to Sriracha | 3 years ago
2 likes

HMRC

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