Unfortunately it will soon be no longer possible for me to ship ukuleles to the EU.
Magazines will be unaffected.
Since Brexit, I have offered to send instruments to EU countries, over a certain value on a delivered duty paid basis (which means the tax and duty is paid by me). I have continued to charge my regular price (which includes 20% tax), and I have used that to pay the tax bill in the destination country. This varies from country to country, between 19% and 25%. In addition I pay 6% import duty (despite it having already having been paid when the ukulele arrived in the UK). This can mean that I am using 20% of the ukulele’s value to pay up to 31% tax in the destination country.
I have always accepted this as the cost of doing business post-Brexit. However, the administration charges for doing this have steadily increased also. This fee is now up to £27.17.
Increasingly too, customs officers are checking the purchase value with customers. They (naturally) give the price they paid, rather than the amount I declare (I declare the price of the instrument minus VAT - as I use that 20% to pay customer charges). They then calculate their tax and duty on the full value. I am often losing money sending instruments to the EU as a result.
If we take an example of a ukulele at £200, being sent to Sweden. I receive £200. In the UK I would receive £166.67, and pay £33.33 in tax. In theory I am attempting to pay all of the charges to send to Sweden using £33.33.
The cost to send that ukulele is £17.33. The admin fee is £27.17. Swedish customs ask the customer how much they paid and they say £200. Customs then charge tax on £200, which comes to £50. And they charge 6% import duty on this amount too, which equals £12. So my total charges are £105.50.
A typical profit margin might be around 30% of the selling price, excluding VAT. In this example, that means a cost of £128.21. Add the £105.50 charges and the total cost to me is £233.71, a loss of £33.71.
It doesn’t always happen this way - as higher value ukuleles do generate a profit still, but this profit margin is greatly reduced.
I may consider sending ukuleles over £400 to the EU in future - but this will be on a case by case basis. But it is likely I will cease doing this altogether. There is the option to allow EU customers to purchase ukuleles with the tax excluded, but I am reluctant to do this as the charges are so variable from country to country that I am unable to provide accurate advice on what they might be. Some countries (Cyprus and Greece, for example), charge huge fees which would make any instrument hugely more expensive. I don’t want customers to have to pay these charges, especially as they’re applied in a seemingly inconsistent manner.
I have to stress that UKE Magazine is unnaffected as there is no tax on printed paper.
I will shortly cease shipping ukuleles to the EU. In order to do this I need to make a number of time consuming changes to the website. When I have been able to do this, shipping ukuleles to the EU will no longer be possible. I am sorry to report this - which is of course no fault of customers in the EU.