Economic Justice

10,986 petitions

Started 4 hours ago

Petition to Michael Gove, HMRC, UK Government, Parliament, EU, Ursula von der Leyen, Boris Johnson

Re-instatement of the Marginal VAT scheme between GB and EU (inc. NI) on Second Hand Goods

“WatchPro” In the case of the free trade agreement signed by Britain and the European Union last year, businesses trading in second hand goods are being hit with a change in taxation rules that puts UK-based operations at a massive disadvantage to competitors on the Continent when selling goods into the EU. The issue relates to a little-known regulation known as the margin scheme. This allows any business based within the EU to pay sales taxes, such as our 20% VAT, on just the profit margin of the trade. Since January 1, the UK is no longer included in the margin scheme, so the same watch selling for £15,000 would now have £3,000 of VAT added. Since all remaining 27 member states of the EU still offer the margin scheme, it means a customer buying the aforementioned Rolex from any trader based in the EU will pay £16,000 for the watch, but a UK-based business selling to an EU-based customer would have to charge £18,000. The disadvantage on price is being compounded by difficulties getting goods cleared through customs. There are additional concerns that the most reputable operations will be undercut by dodgy dealers buying and selling on the black market and not declaring sales for tax purposes. Putting a number of genuine businesses with large employee bases out of business. This could also set perceptions of the pre-owned industry back by years to the days when second hand watch dealing was synonymous with flogging dodgy timepieces from street markets. It is also likely to spark a rush to acquire more watches within the UK, with rising demand potentially leading to higher prices.

Andy Dias
10 supporters