Selling to EU Countries from the UK changed considerably in July 2020.
As the seller of products to the EU the MK1 Cortina Club is now responsible for adding EU Member State VAT to all orders, collecting this VAT and submitting a monthly EU VAT Return to pay this VAT on behalf of the Club's Members'.
These rules are not MK1 Cortina Club rules, not UK rules, and have nothing to do with Brexit.
These are EU taxation rules.
As an example of what we means:
- Hans, in Germany places an order with the Club.
- This order is to be delivered to Germany.
- The club now has to apply 19% VAT to this order (Germany's VAT Percentage).
- The club has to pay the EU this 19% collected at the point of purchase on a monthly EU VAT return.
To make things a bit more complex, we cannot collect VAT on orders that have a value greater than €150 (approximately £130), excluding postage and insurance, the VAT on these orders needs to be paid by the customer upon delivery.
Which to a lot of Club Members is and was a surprise when the courier ask for the addition charges to be paid before their goods were able to be delivered.
The Club has take the decision to only accept order to EU Member States with a value of less than the €150 (approximately £130) threshold. Which is most of the order to the EU anyway.
This may change going forward.