Uk VAT: etsy does not incalculate shipping upgrades

[BeautifulArtPosters]

This is a very specific issue:

If a customer from UK purchases an item that is below 150£, etsy calculates and takes in the VAT. Unfortunately, according to the law, the shipping price is also part of this calculation.

ETSY unfortunately does not include the shippuing upgrades into this calculation. This leads to unhappy situations (especially if the shipping upgrade pushes the total price above the 150£ limit) as the tax for the total purchase has to be paid again at import. The only way to avoid is to make some (illegal) underdeclaration.

Does someone know how to report such an issue to the tech-team?

[FancyTogs]

The calculation for whether VAT is charged uses the "intrinsic value" for the order, which is goods only. The limit is £135, not £150.

However, if Etsy needs to charge VAT then the VAT amount is calculated on the total value of goods and delivery.

Lawrence (Clare's other half)

[BeautifulArtPosters]

Thank you @FancyTogs

I made the experience that UK custom agents included the shipping fee into the total price for the calculation and didn't accept VAT only for the goods. Do you have access to some legal documents to prove your statement? That would be very helpful for me.

[FancyTogs]

@BeautifulArtPosters(you need to select from the dropdown to activate the name)

Try this:

https://www.gov.uk/guidance/vat-and-overseas-goods-sold-to-customers-in-the-uk-using-online-marketpl...

Lawrence