The UK’s transition out of the European Union has brought about a lot of changes. But one thing you may not have thought about is how this will affect the way you shop online.
Previously, the same rules applied for goods supplied from the UK and the EU. Now, things have changed.
While at face value online shopping may look the same, there may be some differences you should be aware of, as they can often bare unknown costs - what some may call the “Brexit Tax”. All of these charges can add up to more than the items’ value. Your order may also be delayed, and this process can really put a damper on your online shopping experience.
So, what exactly are the differences between shopping from the UK and outside, and how can you avoid the extra hassle and charges?
What happens when I buy from a shop in the UK?
When you buy from a shop in the UK, such as the Backpack Shop, your order is delivered on time and there are no incurring fees or taxes. What you pay at checkout is the final price.
Because we operate in the UK, there is no need for you to pay additional fees. Your order is shipped from our warehouse in Cornwall and is speedily delivered through the shipping method you select at checkout.
Beware, as many companies may look like they are a UK-based company, but in reality, they run their operations from elsewhere in the world. We advise that you always do your research and only buy from a trusted source in order to avoid unnecessary delays and fees.
What happens when I buy from a shop outside of the UK?
VAT
One of the main differences is VAT. Previously included in the economic trade agreement with the EU, the difference in VAT applied to goods coming from the UK vs the EU will now have to be paid by the receiver, meaning you.
On goods valued at over £135, VAT is paid at the point of delivery. For goods worth less than £135, the VAT will be paid at the point of sale.
Customs Duty and Excise Duty
What’s more, you will also be charged Customs Duty and/or Excise Duty (the latter is applied to alcohol or tobacco products). Customs Duty is charged on the price of the goods, P&P costs and insurance.
How much Customs Duty will I have to pay?
The table below breaks down the percentages for you.
| Type and value of goods | Customs Duty |
|---|---|
| Non-excise goods worth £135 or less | No charge |
| Gifts above £135 and up to £630 | 2.5%, but rates are lower for some goods |
| Gifts above £630 and other goods above £135 | The rate depends on the type of goods and where they came from |
You pay Customs Duty on excise goods of any value. If your goods’ value isn’t properly declared, or if you fail to pay the Duty, the goods may be seized before reaching you. You are required to pay Excise Duty on goods you purchase yourself, as well as goods that are sent to you as a gift.
If you are overcharged or wish to return your goods, you can ask for a VAT or Customs Duty refund, in addition to filling out a C285 form, or a C1179 for a returned faulty item. If you’d like to make a return, you’ll need to fill out a customs declaration form, CN22 or CN23, which include the item’s description, weight and value.
Handling Fees
In addition to these charges, your courier may ask you to pay Handling Fees, which depend from company to company.
More information can be found on the government website and here.
So, if you would like to spare yourself the hassle of worrying about tax and VAT, your best bet is to shop from companies operating in the UK.
At Backpack Shop, you will get the same authentic products at competitive prices and an easy, hassle-free shopping experience.