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Brexit advice on logistics.

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  • 07-12-2020 10:23am
    #1
    FutureGuy
    Moderators, Computer Games Moderators Posts: 15,237 Mod ✭✭✭✭


    Hi all,
    I have spent lockdown(s) reskilling and I have created a brand which I am hoping to launch soon.

    I have learned quite a lot and have a design team and suppliers in place. The big issue here is Brexit. I am finding it extremely difficult to get clear and concise guidance on the implications of Brexit.

    My main market is undoubtedly UK. The product is generally textiles (t-shirts, hoodies etc).

    I am based in Ireland and I have a UK based and a non-UK based fulfillment center. The UK fulfillment center can cater exclusively for UK customers, but it still looks like my customers have to pay 20% VAT (albeit no import duty). Is this correct?

    I'd basically like to set up to ensure UK customers find my products competitive but cannot find a route to doing so.

    Any/all help is greatly appreciated.


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    #2
    GerardKeating
    Registered Users Posts: 7,660 ✭✭✭GerardKeating


    FutureGuy wrote: »
    The UK fulfillment center can cater exclusively for UK customers, but it still looks like my customers have to pay 20% VAT (albeit no import duty). Is this correct?

    Assuming your customers are retail/end users, then yes they would be paying VAT...


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    #3
    FutureGuy
    Moderators, Computer Games Moderators Posts: 15,237 Mod ✭✭✭✭FutureGuy


    GerardKeating wrote: »
    Assuming your customers are retail/end users, then yes they would be paying VAT...

    Sorry for the dumb questions. Yes, they are retail/end users. Can I ask how is that different from right now?


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    #4
    JMR
    Registered Users Posts: 633 ✭✭✭JMR


    FutureGuy wrote: »
    I'd basically like to set up to ensure UK customers find my products competitive but cannot find a route to doing so.

    What are you finding is your main obstacle to a competitive pricing structure for UK customers?
    If it is VAT, there is no way around this I'm afraid but you must also charge VAT on your sales in Ireland so not sure what the difference is with the UK or how Brexit impacts this?

    Note that childrens clothes are zero rated for VAT in both Ireland and the UK.

    Are you registered for VAT in the UK?


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    #5
    brynne
    Registered Users Posts: 84 ✭✭brynne


    Go to your local LEO and sign up for one of their Brexit workshops. You'll need to be familiar with new 'incoterms' for dealing with countries outside the EU. If you intend to cover the cost of importing the goods to your customers, you will be selling DDP (delivered duty paid - thereby negating any customs responsibility for your customers), and you will need a UK business entity, registered for VAT in the UK, even if the goods are zero-rated.

    Because the UK have not yet even beta-tested the IT systems that are required for processing customs clearance for goods coming in from the EU, they are apparently granting a 6-month 'honeymoon period' whereby customs clearance procedures won't cut in immediately.

    Unfortunately, the EU have no such honeymoon period for goods coming in from the UK ... We'll be having to clear all UK imports through customs - unless sold DDP - from day 1, 1st January - regardless of whether or not there is eventually a free trade deal. Half our UK suppliers seem unaware of this minor inconvenience!


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