Import duty to the UK

[Dononemaccaboy]

Hi looking at the Torque ON at 5,799.00. looks like the vat is included in the price but will I be subject to import duty being in the UK? Propain Ekano are estimating an addition 14% on their bikes, which would make this 6.5k + and that excluding the shipping at 40 and the additional battery should you go for it.

Am I right or is this discreetly not mentioned on Canyon website

Thanks

 

[Doomanic]

The import duty on eBikes is 6% I think.

 

[Dononemaccaboy]

The import duty on eBikes is 6% I think.

Thanks for the response, sounds more reasonable. I've raised a request with Canyon so will update the thread if they know

 

[Doomanic]

The price includes VAT & duty but not shipping.

 

[Norange]

Canyon Statement

 

[Dononemaccaboy]

Thanks both, great spot. Looking to be my first ebike. Would you go for the Torque ON or the Marin Alpine Trail e2?

 

[Norange]

Personally speaking, I'd be buying a bike I could get from a dealer local to me in the UK. Had a couple of issues with mine and they were sorted in a short time.

What bike are you riding currently, and how hard are you pushing it? To me, that looks like a lot of bike, because my riding and skills wouldn't justify it and i'd be happier on a lighter, shorter travel bike.

 

[Dononemaccaboy]

Personally speaking, I'd be buying a bike I could get from a dealer local to me in the UK. Had a couple of issues with mine and they were sorted in a short time.

What bike are you riding currently, and how hard are you pushing it? To me, that looks like a lot of bike, because my riding and skills wouldn't justify it and i'd be happier on a lighter, shorter travel bike.

Just sold my Propain Tyee to fund the ebike purchase. My skills wouldn't justify either, just being drawn in by the spec and price mainly + a spare battery option

 

[Pivot]

I am planning to import new bike from EU.

I am told by the seller that they will sell it to me ex-VAT, as UK is now outside of the single market and I will pay local VAT in UK, on arrival.

I was under the impression that there is no import duty from EU, as we have a ‘free-trade’ agreement.

 

[Doomanic]

Under Rules of Origin if the bike is over 55% EU sourced there’s no duty. Under that it’s 6%. What bike is it?

 

[Dononemaccaboy]

My response from Canyon for info

Any such fees are incorporated within the price, so the price you see if the price you pay with no additional charges during the shipment process!

More detailed information of this topic is provided in the below links;

How to calculate order cost in the UK

Calculate the total order cost in the UK which includes VAT, customs fees and disbursement fees.

www.canyon.com

Brexit information

Find out more about UK shipments to Great Britain and Northern Ireland.

www.canyon.com

Kind regards,

 

[Norange]

Under Rules of Origin if the bike is over 55% EU sourced there’s no duty. Under that it’s 6%. What bike is it?

Thought it was 14% for complete bikes?

 

[Doomanic]

Clockwork bikes are 14%, eebs are 6%.

 

[Pivot]

Under Rules of Origin if the bike is over 55% EU sourced there’s no duty. Under that it’s 6%. What bike is it?

Ducati TK01, I.e.:
1. Fonts and Colours by Ducati (EU)
2. Design and component selection by THOK (EU)
3. Manufactured in Taiwan (SE Asia)

Now, my question is, what is the value of RnD, logistics & profit margin that Ducati and THOK make on this bike. If it’s 55% then it will be duty free. No?

 

[Zimmerframe]

Ducati TK01, I.e.:
1. Fonts and Colours by Ducati (EU)
2. Design and component selection by THOK (EU)
3. Manufactured in Taiwan (SE Asia)

Now, my question is, what is the value of RnD, logistics & profit margin that Ducati and THOK make on this bike. If it’s 55% then it will be duty free. No?

A sexy brand like Ducati, that must be 50% of the value ? Done.

We can probably increase that.

Ducati is owned by Lamborghini - so that must make it even more premium > 70% ?

Lamborghini is owned by Audi - so that added reliability and some design common sense.... > 80%

Audi is owned by Volkswagen - so you're buying the e-bike version of a VW lupo <<<<<<<<<<< 10% .. lets hope they don't look that far.

 

[Pivot]

A sexy brand like Ducati, that must be 50% of the value ? Done.

We can probably increase that.

Ducati is owned by Lamborghini - so that must make it even more premium > 70% ?

Lamborghini is owned by Audi - so that added reliability and some design common sense.... > 80%

Audi is owned by Volkswagen - so you're buying the e-bike version of a VW lupo

No No No!

If you go any further, you will tell me that I am riding a love-child of Hitler and Mussolini

 

[Zimmerframe]

No No No!

If you go any further, you will tell me that I am riding a love-child of Hitler and Mussolini

Maybe you could re-badge it as the "Volksrad" ?

 

[Zimmerframe]

Crap, you only have to type it and someone nicks your idea :

DKW ES Volksrad 1930 - Moto Passion - Moto Collection François-Marie DUMAS

 

[Doomanic]

Ducati TK01, I.e.:
1. Fonts and Colours by Ducati (EU)
2. Design and component selection by THOK (EU)
3. Manufactured in Taiwan (SE Asia)

Now, my question is, what is the value of RnD, logistics & profit margin that Ducati and THOK make on this bike. If it’s 55% then it will be duty free. No?

It won't be duty free. That is to say, it should attract duty but the way things are at the moment you may be lucky and pay no duty or VAT.

Bird makes frame in the UK. Their bikes barely make it over 55%. The vast majority of the Thok is Far East sourced.

 

[Norange]

Clockwork bikes are 14%, eebs are 6%.

Ah, that partly explains why Canyon can write it off then.

 

[Doomanic]

They're not writing it off, the bikes are significantly more expensive to the UK than to Europe.

The Torque:On is the same is Euros as GB£.

 

[Mikerb]

Canyon are at least now registered with UK HMRC and therefore able to charge VAT at point of sale, are adding the 6% tariff to their list price for UK export, including shipping fees..........and of course exporting to the UK. So at they have an all inclusive price for a UK customer. Bit different to their situation a few weeks ago!

 

[Pivot]

Import Tariffs are typically imposed to protect the local manufacturers.

Who are the local manufacturers, aren’t premium components imported anyway?

 

[Mikerb]

In this case it is the inclusion of Rules of Origin (ROI) in the trade deal that results in a WTO tariff being applied. ROI is a domestic market protection measure but is now, in my opinion, completely out of date given the large scale outsourcing of manufacturing to the Far East. Domestic market protection except for embryonic enterprises is in any case counter productive in terms of the benefits of competition.....especially for the consumer! The UK preference is for free trade with no ROI.

 

[Surrey Hillbilly]

If you need an update on this, yeah, Canyon do an inclusive price and DHL deliver as before Brexit. Others who have not registered with HMRC (and you can't blame them, the UK is an important market, but take this shit to the extreme and every company needs to register with >200 country's tax authorities and keep up with any changes each one makes to their rules). Had ordered a Commencal which is an Andorran company, Andorra is not in the EU, but they ship from France to make it easier as Andorra's VAT rate is 4% vs the EU's average of 20%. They dropped the French 20% but said DHL would take the UK's 20% and also charge me £25 for the privilege, 25 quid on a five grand purchase is neither hear nor there, but it was nice to get it the details clearly spelled out and whilst there are many disadvantages to Brexit, the importation of e-bikes does seem to be one of them, minus a minor big of agg.

 

[Mikerb]

thanks for the update. Since you appear not to have been charged any import tariff I assume Canyon are including that in their list price.

Just to correct you on one point. Canyon are only exporting to one more country (the UK) than they were before not 200 more, and they do not need to register with HMRC if they are only selling goods over £135 ( e.g any bike). Goods over £135 are sold VAT free and the UK VAT is charge/recovered by the carrier on import to the UK. Canyon no doubt however, also sell lower cost items so they need to register with HMRC for sales of those items to UK customers and charge that VAT at the point of sale.

 

[Doomanic]

Canyon are selling bikes to the UK with the VAT and import included and paid the UKG by them. Canyons sold to the UK are more expensive than Canyons sold inside the EU.

 

[Mikerb]

Canyon are selling bikes to the UK with the VAT and import included and paid the UKG by them. Canyons sold to the UK are more expensive than Canyons sold inside the EU.

not according to @Surrey Hillbilly ......he was charged 20% VAT by DHL, the carrier not Canyon .

 

[Surrey Hillbilly]

not according to @Surrey Hillbilly ......he was charged 20% VAT by DHL, the carrier not Canyon .

No I wasn’t. Commencal were selling VAT free and I would have had to pay the U.K. VAT to the carrier, plus admin fee, but they screwed up the order so I cancelled and bought from Canyon who have registered with HMRC and so they pay the VAT directly and I paid the amount shown on the website and nothing more.

Canyon has had to register with HMRC to do this, they also must keep abreast of any changes to U.K. tax regs, if they were to do this for the rest of the world they would need a small army of accountants and to keep up with it all!

 

[Mikerb]

No I wasn’t. Commencal were selling VAT free and I would have had to pay the U.K. VAT to the carrier, plus admin fee, but they screwed up the order so I cancelled and bought from Canyon who have registered with HMRC and so they pay the VAT directly and I paid the amount shown on the website and nothing more.

Thanks for clarifying that. I misread your post. It does appear that Canyon are opting to include import duty in their quoted price.

Canyon has had to register with HMRC to do this, they also must keep abreast of any changes to U.K. tax regs, if they were to do this for the rest of the world they would need a small army of accountants and to keep up with it all!

The EU is introducing an identical scheme in June 2021 for its member states, albeit the registration ( called the One Stop Shop/OSS) need only be a single one for Export to any other EU country. In the vast majority of import/export scenarios globally, VAT and customs duties are charged at the border. The reason for the introduction of the £135/150 Euro threshold by the UK and the EU, where VAT is charged at the point of sale, is to speed up transfer of goods through customs for high volumes of low value goods and to combat what has been to date a widespread opportunity for VAT not to be paid to the relevant country.