We have seen 70% of our business go due to the Chinese sellers who sell at prices I buy wholesale in China for.
The Chinese manufactures themselves are selling their goods to us, but then competing directly against us.
They are not just evading vat either, they are also avoiding a lot of postage because they don’t declare a lot of their mailings.
The other thing is this, to make it look legitimate many of the Chinese sellers now register for vat, collect it from the sale, however when the payment is due to hmrc they don’t pay it.
They also register fake vat numbers or steal real numbers from other business’s, I’m afraid to say it but the Chinese have no integrity when it comes to business.
Latest news from the government is this, to tackle this fraud they are hopefully going to take vat electronically at the point of payment, so the Chinese and any other business’s who try to get away with paying will not have any choice & it can’t come soon enough.
Whether or not many UK business survive is another thing because the Chinese sellers are just cleaning up.