Online retailers from the European Union are refusing to deliver goods to the UK because of new Brexit taxes that came into force last week.
A number of specialist online retailers from the EU have been forced “by British policy to stop dealing with British customers”.
According to BBC News, Dutch Bike Bits said it will now deliver to every country in the world except the UK, while Beer On Web, a beer retailer from Belgium, said it would also shun he UK due to the new measures.
It comes after the UK’s official departure from EU trading laws on January 1 meant companies exporting to the UK face higher VAT costs and more red tape.
Under these new rules VAT is collected at the point of sale rather than the point of importation, meaning EU businesses exporting to the UK must register for UK VAT and account for it to the HMRC.
This essentially means that overseas retailers sending goods to the UK are expected to register for UK VAT and account for it to HMRC if the sale value is less than €150 (£135).
According to the UK government, this new model “ensures goods from the EU and non-EU countries are treated in the same way and that UK businesses are not disadvantaged by competition from VAT-free imports”.
It added that many EU businesses currently selling to UK customers “will have already registered for UK VAT under existing rules”.
It is also designed to help tackle VAT tax evasion, which is understood to have skyrocketed over 2020 as international online trade boomed.
Dutch Bike Bits said: “For providing this service, (HMRC) intend to charge a fee to every company in the world in every country in the world which exports to the UK.
“Clearly this is ludicrous for one country, but imagine if every country in the world had the same idea.
“Not being able to send parcels to the UK does not work in any way in our favour and it is not what we wanted.
“If you’re angry about this, and you may well be so, please contact your elected representative in the UK.”