After Brexit, it is unclear how exports to the EU will work in practice. Like everyone else, we are struggling to see how we can maintain Pre-Brexit service levels for our EU friends.
At the moment, it looks like customers from the EU will have to pay Customs Duty (only if your purchase is more than €150), VAT and maybe a processing fee when their purchase is imported to the EU. This is painful and we are doing our best to minimise these costs to you, but this seems to be where we are. Purchases from our site for delivery to within the EU are now free from UK VAT.
Please, if you have any questions, don’t hesitate to get in touch with us.
In more detail:
- Customs Duty
- For fabrics lampshades there will be no customs duty to be paid as these are made in the UK and count as UK originating products.
- All our remaining products are made in Japan and are therefore excluded from the Brexit trade deal. This means that customs duty will be payable by you for all purchases over €150 (excluding tax and shipping costs). Purchases under €150 will not be assessed for Customs Duty.
- We can advise an estimate for any Customs Duty that will be levied, the exact numbers will depend on the exchange rates that are used.
- If we can, we will move to a courier service where we can pay the Customs Duty, but at the moment this is not possible. Courier companies are struggling to adjust their services as much as anyone else at the moment.
- The trade deal does not cover VAT. At the moment, you will have to pay VAT on imports to the EU. We have deducted UK VAT from all purchases to be shipped to the EU, so you will not double pay VAT.
- The EU has decided that importers will pay VAT in the future. Once the IOSS system has been set up, we will pay VAT on behalf of our customers for all purchase under €150. It is unclear how this will work for purchases over €150.
- Processing costs / Admin fee
- Most couriers and postal services charge a fee for assessing VAT and Customs Duties. This is normally between €8 and €15.