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EU Retailers Face Brexit Headaches for UK Imports

Tamison O'Connor

05 January 2021

Some companies, such as Finnish outdoor retailer Scandinavia Outdoor, say they are suspending shipping to Great Britain following Brexit tax changes that came into force on January 1.

Changes in VAT rules mean the tax is now being collected at the point of sale for any goods under £135, rather than at the point of importation. That means companies sending goods to England, Scotland or Wales now have to register and file accounts with British tax authorities.

Elsewhere, some courier services, like FexEx-owned TNT, are imposing surcharges on packages sent between the EU and the UK to cover additional investments required to adjust their systems, reports the BBC.

Scandinavia Outdoor plans to reopen its store for UK-based customers “as soon as our UK VAT-registration and the overall process of selling to the UK post-Brexit has been sorted out,” the brand wrote on its website.

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