UK urged to close tax loophole to prevent ‘massive influx’ of Shein and Temu goods

4 comments

1. As much as it means extra paperwork (though might encourage a more streamlined method for purchasers to pay the incoming tax/duties), it’s hard to say this is completely unreasonable.

2. Except Trump step wont work. There’s way too many packages for customs to deal with, the ‘loophole’ exists for a reason and that’s to allow custom agents to cocnentrate on the high value/risk packages.

   The US Should certainly reduce their threshold, but having it at zero will freeze the network

   And all countries should ensure the price they charge for shipping via the Universal Postal union covers all costs (and isn’t less than domestic businesses)

3. Article is wrong, it’s only gifts worth less that £39 that are VAT free. Goods bought on websites or marketplaces must take VAT from UK customers and pass it back to UK government. [or else do customs declaration of value of goods, so the customer will pay VAT and a processing fee when they receive]

   I’m not sure if they are saying there is large scale VAT fraud by declaration of goods as gifts, because there isn’t actually a loophole that they claim. I think bad article and not understood by whoever was writing, It’s criminal fraud not a legal allowed loophole. They could stop this but the issue is you will get charged customs fees for the xmas gift your aunt sent from Australia.

   Their used to be something called Low Value Consignment Relief (LVCR) but that was stopped after companies in Jersey took the piss by importing stock from the UK in order to export back to UK customers and pay no VAT and use the Royal mail cheap postage to do it (play.com etc)

4. This will level the playing field and benefit online UK retailers who are forced to pay VAT on their imports

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