UK VAT not on invoice

[DanovaVintage]

Hi,
I just received an order (item sale price is € 65,00) from a customer in the UK.
The UK Vat has not been collected by Etsy, it doesn't appear in the invoice.

I send a message to the customer to inform him about it and the concequence that the UK Royal Mail will probably collect the VAT on delivery. However they will charge a handling fee for it and therefore I need his approval to deliver anyway or his cancellation of the order.

Is this a temporary bug in the Etsy software(??), Are there more sellers experiencing this bug at the moment??

Best regards,
Henny

[Arcalliq]

If I remember correctly, the VAT is calculated on the total amount - including shipping. What was the total price?

another possibility is that the item you sold is VAT zero-rated in UK, e.g a book.

[DanovaVintage]

Thank you for your response. The item sold is a vintage Wall Crucifix.
Where can I check the list with zero VAT items?

[CraftyCornishMaids]

Check the type of item, some things are zero rated, - and if it is, make sure the HS tariff code is absolutely correct, to match the zero-rated classification

[CappuccinoLace]

Was it a book, or listed in the book category? Those are 0% VAT.

[DanovaVintage]

Thank you for your response. The item sold is a vintage Wall Crucifix.
Meanwhile I had a chat with Etsy Support and they are sending me an email when they solve the problem.

[Vintorious]

Was the buyer a private individual, or could they have been making the purchase for a church or museum? 

[DanovaVintage]

Thank you for your response. The item sold is a vintage Wall Crucifix to a private person.

[CraftyCornishMaids]

books are zero rated, as are childrens clothes

some antiques can be vat exempt,

what category was it in, and what tariff code did you use

list of vat exempt and zero rated....

https://www.gov.uk/guidance/rates-of-vat-on-different-goods-and-services

and import vat reduced on antiques/works of art

https://www.gov.uk/hmrc-internal-manuals/imports/imps05200

[FutureRetroGolf]

UK shop here. If you send something into the UK, and it's above a certain value that a VAT or customs payment is required, the recipient gets a message or letter from Royal mail and link to pay. Once that is done, the mail gets released and delivered. So as the seller, it's not something for you to worry about, you can post it and it will get sorted once it is here in the UK

[CraftyCornishMaids]

@FutureRetroGolf 

The item was under $65, as a platform, Etsy should collect the import VAT, unless it is zero rated or  exempt

Etsy has to collect import VAT on all orders under £135, so it should NOT be collected again on import for this order ... unless it was exempt or zero rated

[FancyTogs]

@FutureRetroGolf 

The £15 threshold for import VAT (officially called teh "Low Value Consignment Relief") was abolished from 1st January 2021.

VAT is now due on all commercial goods entering the UK (VAT is due even if zero rated or exempt, there is just no VAT value).

Etsy are responsible for collecting import VAT on imported goods below £135 intrinsic value (goods value only, not delivery charge), but the VAT is due on both goods and delivery charges. Above £135 the customs office collects VAT on delivery via teh carrier, because the VAT is calculated on the value after customs duty.

There is still a £39 VAT threshold for gifts, but goods purchased on Etsy cannot be gifts for customs purposes, they are always commercial goods.

https://www.gov.uk/government/publications/changes-to-vat-treatment-of-overseas-goods-sold-to-custom...

Lawrence (Clare's other half)