I have a related concern. My Mod X is with Mod Devices for repair and I do not want to have to pay any extras when it is returned. Let’s hope anything clearly marked as a repair return will not attract any border charges!!!
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We hope the same. Fingers crossed.
Anyway, we will try to collect more info and then understand how to proceed.
Hmm - just came across this, from Thomas DE page - they take the VAT off. Otherwise UK customers would be charged twice. Shouldn’t Mod devices be doing something similar?
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Special Rules for our UK Customers
With the new trade agreement between the EU and the UK, new regulations have been applied to all commercial transactions between the two distinct markets.
As of 01.01.2021 all current prices shown on our UK website do not include VAT 20% (Value Added Tax).
According to the new regulations, the VAT (20%) and additional handling fees will have to be paid to the courier upon delivery with the only exceptions being special VAT-free zones (e.g Channel Islands).
Based on the feedback we have received so far, Government Charges will be collected by UPS and they consist of the 20% VAT plus a small amount for the paperwork involved (usually around 2.5%). There is also an additional amount to be paid to UPS for their service, which is a minimum of 11.50 GBP. As not every order has the same customs requirement, for further information we advise that you check the costs and procedures in advance with the courier locally.
VAT will be added and charged by Thomann GmbH after processing an order only if the net value of the order is equal or less than 135.00 GBP or if delivery will be to Northern Ireland. In these cases, no additional fee will have to be paid upon delivery.
For items exceeding 31 kilos, or heavy goods such as PA equipment, pianos, etc., we have to employ the services of a heavy haulage company. As these new regulations only came into effect a few days before the end of the transition period, delivery by this method of transport to the UK is currently not possible. Further information will be included in our order confirmation email.
Please be assured that with more than 20 years of close cooperation with our UK customers, it is our priority to find new solutions that will allow us to provide door-to-door online prices as soon as possible.
I think the main issue in the MOD case is that the money has been paid via platforms like Kickstarter and Indiegogo. And I am not sure exactly how things work since we have not technically bought a device, but paid for backing a project and are getting a Mod device as sort of award or something. I am not sure how it qualifies legally and from the point of view of the tax laws in the different countries involved (I don’t know where Kickstarter is based by the way)
Also it’s more confusing because we paid before the 1st of Jan, so it’s quite an edge case.
Hi everyone
After a lot of back and forth, we now have a better clarification of the situation with Brexit.
As @Azza has already suggested, crowdfunding is not a sale at first. The money we collect is a lump sum that initially is considered a donation. Crowdfunded projects might fail and in that case, the funds are lost and there is no product shipped to qualify a sale.
For this reason, there is no application of VAT on the incoming Kickstarter funds until shipping starts.
Once we ship the units, a sale is then characterized and taxes must be collected, on a per-shipping-country basis.
The backing of the campaign happened in 2020, so the funds we have collected were not considered revenue and are allocated in a specific bookkeeping account as pre-payments, with no invoice being generated.
As we ship the units in 2021, these pre-payments are then categorized as sales, and invoices are generated.
That said, for UK residents, the Dwarf units we ship in 2021 will be subject to VAT at the moment of arrival in the UK. This means that UK backers will need to pay 20% VAT just like Switzerland, Norway, Iceland, and other European countries that are not part of the European Union.
According to Commodity code 8543900000: Parts - UK Global Online Tariff - GOV.UK , there are no extra import taxes to be applied.
I understand that for UK residents this might be a turn-off but this is a subject that is completely out of our control.
I kindly ask the UK backers to contact kickstarter@moddevices.com and notify us if you want to keep your reward or if you would like to apply for a refund.
MOD Devices will not issue reimbursements of the VAT collected by UK residents and backers need to opt between receiving their unit and take responsibility for collecting VAT when receiving the device or be refunded of their pledge amount minus the Kickstarter fees.
If needed you can of course reach out directly to me if you prefer.
Wish you all a great weekend!!
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Thanks @gianfranco, is this information the same for Indigogo?
Sad to hear, but glad that it is now clear!
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Yes. Both Kickstarter as Indiegogo are treated the same way.
That is the reason we have now created two different pledges, one for the VAT zone and one for outside of it.
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So could UK users ask for a refund of their initial pledge and apply fresh with a new pledge without VAT? I guess that they would then loose their early bird discount, wouldn’t they?
I am happy to have changed my shipping address to my Mum’s in France (although that means I will have to wait to be able to travel there to get it)
That is right @Azza
For UK backers that pledged earlier, the cheapest option is to keep the original pledge even with the payment of VAT when receiving.
I’m very disappointed with the slightly dismissive and unfriendly position on this. While I sympathise with the financial issues outlined in Kickstarter update #22, the position that it is “completely out of our control” is simply not true.
I backed another Kickstarter project at the beginning of last year with similar circumstances – a small independent audio manufacturer, based in the EU, who also missed their 2020 delivery target. In contrast they proactively covered all extra fees, despite their device being more expensive that the Dwarf. It therefore is absolutely possible, but MOD are choosing not to.
You can repeat that crowdfunding is a risk, no guarantee for delivery dates, no obligation to cover fees, and that the accounting situation is complex, etc., but these simply appear as easy excuses and compound the feeling of disinterest in a minority of your customers (or more importantly pre-order customers who backed this project and MOD in good faith).
yeah bit of a tough one. I would have thought the vat was included in the pledge but it seems a very grey area. Which probably is why the MOD guys are having to pass it on. Shame as its probably going to be about £70 on top of pledge in reality after vat and the dreaded handling fees. Which added to the ongoing delays makes me hope its as amazing as I want it to be.
I hope this doesnt put people from the UK off supporting further products in the future.
Sorry to sound negative today but its just my thoughts and not to be taken personally by anybody from MOD or the forum.
I know they are pricing the Dwarf near the 500 mark now but at that price I wouldnt have taken a punt on it as control chain options are very limited amongst other things.
Hoping things will get back on track soon so I can finally try the Dwarf out and post happier responses.
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I know this is an old post, but if any one was wondering, I paid an extra £65.19 import fees to UPS (£11.50 handling fee + £53.69 Govemerment Charges) for Indigogo Mod Dwarf to the UK.
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That’s less than I paid for one direct from Mod - around £75 for me - worth every penny!
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Definitely. It’s looking as if it’s going to cost me very little, as much of my other gear is becoming redundant and possibly up for sale!
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Similar here - I just paid £63.59 import fees (£52.09 Government Charges + 11.50 Brokerage Charges) for my Kickstarter Dwarf via UPS.
Wonder what I get for that extra 40 pence? 
Let us pass this overload of devices being shipped and being received and all the work in between and we promise to spend some thoughts on that.
If you’d have shipped in December 2020 I would. not have had to pay import duty because the UK was in the EU. So this is surely an administrative issue. No extra import duty should be due.
I’m being asked for £91 by UPS.
christ that seems a lot. Not loving the thought of that!!!
Not only do I have to wait longer than anyone else because Im in England but to be stung 50% more than the 60quid I thought I was going to have to pay.
This better be an amazing pedal with audio interface and control chain magic going on etc …er wait a minute.
Well at least yours arrived before the great cable shortage of 2021. They are in stock they have so few best to leave them and concentrate on EU.
And pissed off not pissed up.