BS: VAT Import query

Subject: RE: BS: VAT Import query
From: Thompson
Date: 02 Aug 18 - 04:51 AM

I bought something only available online. €20 duty on a $40 purchase was certainly a surprise. Tell me this and tell me no more - how would I check how much duty and "handling fees" should be paid on such an item?

It's academic anyway - I won't be buying anything at all from the US in future; but I'd like to have the value of your expertise on import duties.

Subject: RE: BS: VAT Import query
From: Nigel Parsons
Date: 02 Aug 18 - 04:45 AM

The thing I bought wasn't available in any local shop.
So you chose to import it without checking what charges you would incur. As Mr Red said above caveat emptor

And ebooks in my country are VAT-rated at something like 21%,
Ah, sorry, I misread your comments above, and was quoting the situation in UK.
Of course, similar rules currently exist throughout the EU.

Subject: RE: BS: VAT Import query
From: Thompson
Date: 02 Aug 18 - 04:32 AM

Nigel Parsons puts words in my mouth: Do you think you should be able to buy something more cheaply when it has had to cross the Atlantic than you could from a local store?

The thing I bought wasn't available in any local shop.

I'm happy enough to pay import taxes, if it's clear how much they're going to be, and if I know beforehand. But this sudden tax of more than half the value of the item, imposed out of the blue, is another matter.

And I agree with Robomatic about VAT. It's a tax that only Joe Soaps pay; business people can get their VAT back. It's also very unfairly imposed - in some countries, for instance, women's sanitary supplies are VAT-rated as "luxury items", which is news to menstruating women. And ebooks in my country are VAT-rated at something like 21%, whereas printed books are zero-rated - the best example of a pure tax on art and knowledge.

Subject: RE: BS: VAT Import query
From: BobL
Date: 02 Aug 18 - 02:40 AM

No huger an income than that from the purchase tax and others which, in the UK, were replaced by VAT in 1972.

Subject: RE: BS: VAT Import query
From: robomatic
Date: 01 Aug 18 - 03:28 PM

I once purchased a bicycle in Paris from some nice ladies who owned a shop on the Champs Elysees. Since I would be touring on that bike, they gave me a form to be signed when I crossed the border to Belgium. That form gave me the status of 'exporter' of the bike and entitled me to a refund of the VAT that was incorporated into the price I paid. Duly signed, that form had to be returned to the bicycle shop for a cash refund. It so happened that I knew someone going to Paris and I was ultimately able to collect 20% back on my bicycle money.

I have long thought that the VAT was a hideous imposition of an additional tax that made it awful hard for 'the people' to control such things, and allow entrenched bureaucracy to subsist off a pretty reliable HUGE income levied on the public. There's a "DEEP STATE" for you!

Subject: RE: BS: VAT Import query
From: punkfolkrocker
Date: 01 Aug 18 - 03:00 PM

..and after Brexit we can more than probably say goodbye to getting good realistic bargain prices
from Music Gear superstores in Germany...!!!??

Subject: RE: BS: VAT Import query
From: punkfolkrocker
Date: 01 Aug 18 - 02:58 PM

The problem is with "Rip off Britain"....

Music gear is notorious for being twice as expensive here as in the USA.
Even when most of the products were manufactured in and exported from China...!!!!!

This unfair pricing was at it's most obvious when we were getting an exchange rate of nearly 2 $ for 1 quid...

Whatever the $ retail price, over here it would be the same number, but with a £ sign in front of it..

eg USA price $99.99 / UK price £99.99...

That's why in the earlier part of this century I could buy a brand new Chinese made guitar from USA,
and even after Shipping /VAT / Custom's Duty/ Post office handling,
it would still work out significantly more affordable than if I had bought it here from a UK shop.

Subject: RE: BS: VAT Import query
From: Jos
Date: 01 Aug 18 - 12:31 PM

The problem isn't with having to pay the extra, it is with not knowing you will be expected to pay it until after you have agreed to buy whatever it is you are going to pay for.

Subject: RE: BS: VAT Import query
From: Mr Red
Date: 01 Aug 18 - 12:15 PM

caveat emptor

Subject: RE: BS: VAT Import query
From: Nigel Parsons
Date: 01 Aug 18 - 10:22 AM

What a scam this worldwide wired globalised world has turned out to be.
Why a 'scam'?
Do you think you should be able to buy something more cheaply when it has had to cross the Atlantic than you could from a local store?
That would also possibly be more cheaply than it could be purchased in US, as you would not be paying the 'local taxes' for purchasing there.

Subject: RE: BS: VAT Import query
From: Thompson
Date: 01 Aug 18 - 09:26 AM

I bought something from the US for $40, and when it was stopped by the Customs, I was charged €10 customs duty and €10 handling fee. So of course I won't be buying American goods any more. Nor will most of the people who have the same experience.

It used to be that the Customs didn't charge duty (or of course a 'handling fee') on anything under €128, but they have suddenly started charging for all goods they stop. I suppose it's a response to the American tariffs on European goods; and I suppose this is mirrored all over Europe.

What a scam this worldwide wired globalised world has turned out to be.

Subject: RE: BS: VAT Import query
From: Jon Freeman
Date: 01 Aug 18 - 09:19 AM

Aye pfr. I certainly don’t see the final cost for this item (just a twist pen – looks like a kit job but nicely truned and finished and lovely wood) as worthwhile with the £15.89 (£8 of which is “handling”) tacked on.

It’s been a while but I’d probably still use Chinese firms on Amazon for some things. Silly things like a drive coupler I used on my Windmill order. Sort of thing you can pick up for a couple of quid that way but IF you find a UK firm stocking what you want, it would be more like £20+

On higher priced items I do believe a brother priced things up and considered a personal legal import of a particular Chinese phone he wanted (apparently very high spec but a lot cheaper than the Samsungs and Ithingy - but what do I know, a WhileyFox does me) worth while.

Subject: RE: BS: VAT Import query
From: Nigel Parsons
Date: 01 Aug 18 - 09:05 AM

The newspapers have also carried stories over recent months of a VAT clampdown on traders selling goods from China into UK via EBay and similar.

Subject: RE: BS: VAT Import query
From: Nigel Parsons
Date: 01 Aug 18 - 08:55 AM

This may be an over-simplification, but people have been benefitting by buying goods from abroad, often because they are cheaper.
One of the reasons they are cheaper is because sellers in US, or the Channel Islands, or wherever (outside EU)will not be charging you VAT.
This gives them an unfair advantage over UK sellers who have to charge VAT so, except for very low value packages, VAT is charged on import.

As to adding in Customs charges and delivery costs before calculating VAT, why not?
If your local music store sells you the goods, such things as import duty/VAT, carriage etc. will all have been covered by them and included in the prices they set for the goods. You then pay VAT on this final figure. You are still paying VAT on all the incidentals (effectively) it's just that as they're not itemised you don't spot the fact.

Subject: RE: BS: VAT Import query
From: punkfolkrocker
Date: 01 Aug 18 - 08:05 AM

1 cent over the miserly limit and you have to pay vat on the full total of the item and it's delivery costs..

+ Customs / Royal mail handling fee...!!!!

I gave up buying regularly from USA several years ago after the exchange rate was no longer in our favour,
shipping charges increased too much,
and the limit for paying vat was actually decreased...

Making even CD or small musical equipment accessories purchases no longer viable.

Subject: RE: BS: VAT Import query
From: Jon Freeman
Date: 01 Aug 18 - 07:58 AM

Thanks all. I'd imagine the answer does lie in the postage costs.

Subject: RE: BS: VAT Import query
From: Monique
Date: 01 Aug 18 - 07:57 AM

This site can explain and you can calculate how much make duty +VAT.

Subject: RE: BS: VAT Import query
From: SPB-Cooperator
Date: 01 Aug 18 - 07:55 AM

Possibly the reason for the VAT was that ebay were conducting the transactions?

Subject: RE: BS: VAT Import query
From: Jack Campin
Date: 01 Aug 18 - 07:53 AM

If an item's value is high enough for it to incur duty, the VAT calculated will also include the costs of postage.

You'd think they'd have arranged to charge VAT on the VAT as well. Maybe they'll get round to that post-Brexit.

Subject: BS: VAT Import query
From: Jon Freeman
Date: 01 Aug 18 - 07:39 AM

Wondering if anyone here can explain.

Dad got hit for VA and an £8 handling fee on top for something he just thought he was getting mum for a birthday present from ebay. OK. I suppose these things happen but I’m puzzled by the UK VAT portion of the bill.

Item was US $39.95 on the customs form.
VAT charged this side is £7.89

to get there and apply VAT on the UK value, I’d need to be working on an exchange rate of around $1 = £1.02.

What am I missing?