Jan 1st Impact on our Hobby

[Guest]

There appears to be some notable impact on our modelling hobby post Jan 1st. Most significantly the VAT exemption on goods valued at less than £15 will be abolished and VAT will be levied on all imported items. Read about that here. Should there be no trade deal - which is looking more likely - as far as I can determine, most plastic goods will incur an import tariff rate of around 6%. Neither is the end of the world. However, the change that will have the biggest impact is having to pay VAT for goods from Europe at this end instead of being inclusive at the seller's end, incurring a 'processing' charge which for Royal Mail and FedEx is currently £12 per item. The changes will certainly diminish purchases directly from the manufacturers like Eduard and Special Hobby.

I have no qualms about paying VAT, but I find the £12 minimum charge per item pretty rich, especially when the VAT amount might be just £3 and you have to fork out an extra £12 for the privilege of paying it. Given that VAT transactions are computerised and payment is made online, the amount levied seems a little exorbitant. Good news for local retailers.

[Guest]

Its as bad as the charge levied by the Post Office telling you owe Custom Fees from the US !

As for local retailers surely they will have to pass the additional charges on if they resell items such as Eduard Pe ?

[Guest]

As for local retailers surely they will have to pass the additional charges on if they resell items such as Eduard Pe ?

Obviously, John, but they'll only have to cover the tariffs. Didn't read what the tariff would be on metal products. It was hard enough finding what it was for plastics.

[Andy the Sheep]

Good news for local retailers.
[/QUOTE]

Well, IMHO, it's exactly what the Brexit battle was about... :worried:
From the "isolated Continent" :worried::worried:, we will see what will happen to Airfix and Humbrol products.

[Guest]

Bet it was Murfie, the reg writers will be having a field day of making it as complex as the V.A.T regulations became.
And all because we only wanted a Common Market, and not a central government forcing laws upon us.

[Guest]

With the greatest of respect, everyone, I didn't mention the 'B' word deliberately given the depth of emotion involved with the process. I was just trying to point out the facts of what IS going to happen on Jan, 1st and not to make any judgements or give an opinion.

[Andy the Sheep]

Sorry for mentioning the "B" word. I didn't mean to touch sensitive topics.
Please, consider my previuos entry as an untactful but unintentional one.

[Nicko]

And let's not forget that the most likely way the gov't will pay for the pandemic will be to increase the percentage rate of VAT......

:rolling:

[adt70hk]

Indeed not great news if we don't get a deal. Just placed an order with a Polish company I've used before. Delivery is due next week and based on previous experience in should be ok....

[PaulTRose]

just how many kit manufacurers are there in the EU?

at least most are far east

[adt70hk]

I've got kits from 3 European companies - Eduard, Hauler and A-Z Models.

And although I'm not a huge user of aftermarket parts, most of the ones I have got are from central or east European countries, and all my metal barrels..... Often European suppliers.....

[Guest]

just how many kit manufacurers are there in the EU?

Quite a few. Eduard, Special Hobby, Arma Hobby, Revell, Italeri, MPM, RS Models and Smer are, and I've probably missed some. ICM and others are Ukrainian and Zvezda is Russian.

[adt70hk]

Quite a few. Eduard, Special Hobby, Arma Hobby, Revell, Italeri, MPM, RS Models and Smer are, and I've probably missed some. ICM and others are Ukrainian and Zvezda is Russian.

Forgot the Revell ones in the stash....

[Tim Marlow]

Like all change this will bring difficulties to some and opportunities to others. Let’s face it....most of us have enough kits in the stash to survive for the foreseeable future so let’s see what shakes out over time.

[Guest]

Doesn't sound like good news.