VAT issues in the UK
Feb 1, 2008 at 12:36 PM Thread Starter Post #1 of 36

redrich2000

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I bought a Tomahawk from the FS forums recently which is being shipped from the US to the UK. This morning I got a VAT (sales tax) bill for 25 pounds plus 8 pounds clearance fee
frown.gif


I am assuming this means the seller has not marked it as a gift and has put down the full price I paid. Has anyone else had this happen?

I have offered to split the cost with the seller. But I'm wondering whether there would be any chance of claiming the tax back at some stage?

Thanks
 
Feb 1, 2008 at 12:57 PM Post #2 of 36
Sorry mate but it comes with buying overseas. Asking the seller to send your goods as a gift helps but I wont always be enought.
What kind of shipping did you use?
Judging from my experience, you will always be taxed when using fedex/ups/dhl and almost never when using USPS. That's why I always use USPS with a lower value insured.

I dont think you can claim anything but you can still try.
 
Feb 1, 2008 at 1:14 PM Post #3 of 36
I've bought several amps from companies & individuals in the USA & Canada for shipping to the UK. Some of these sellers (e.g. RSA, MAD) have, without being asked, kindly declared the goods as commercial samples/gifts and have vastly under-rated the true cost of the gear. This has kept the VAT bill low (£4.50 for my Hornet; £14 for my Ear+ HD) & kept me smiling...

My (admittedly sketchy) understanding of VAT charges on non-EU goods is that you, as the "importer", are entirely liable for any VAT & handling fees. Some international sellers are, understandably, not prepared to tell porky pies when filling out the customs declaration, for others it seems to be standard business practice. Either way, I've always respected their choices & coughed up for the charges accordingly. With the current exchange rate, I'm still smiling...
smily_headphones1.gif
 
Feb 1, 2008 at 1:58 PM Post #4 of 36
Quote:

Originally Posted by redrich2000 /img/forum/go_quote.gif
I bought a Tomahawk from the FS forums recently which is being shipped from the US to the UK. This morning I got a VAT (sales tax) bill for 25 pounds plus 8 pounds clearance fee
frown.gif


I am assuming this means the seller has not marked it as a gift and has put down the full price I paid. Has anyone else had this happen?

I have offered to split the cost with the seller. But I'm wondering whether there would be any chance of claiming the tax back at some stage?

Thanks



Marking the parcel as gift is useless since that only bumps the VAT-free threshold to 36 pounds The key is undervaluing to 36 pounds (72 dollars) and marking it as a gift. If you get docked for VAT/import duties, the first 36 pounds isn't exempt.

Also, the more expedited the service, the more likely you'll get hit by import duties. For example, Royal Mail delivers the packages sent by First Class International whereas Parcel Force delivers Priority Mail International and Express Mail Service. Simply because of the sheer volume of mail Royal Mail has to process and the fact that none of it has to be individually barcoded and scanned (as opposed to Parcel Force-delivered items), a lot of high value parcels will slip through the customs net. Large parcels will also attract the attention of customs and if they're too large to be delivered by Royal Mail, Parcel Force will deliver it instead (even if it was sent via First Class International). That will also increase the chance of having to pay import duties.

Do bear in mind that undervaluing is illegal and that iirc the importer is liable. The sender shouldn't really have to split import duties with you since everyone should know well in advance the likelihood of having to pay HM R&C.
 
Feb 1, 2008 at 2:58 PM Post #5 of 36
Quote:

Originally Posted by redrich2000 /img/forum/go_quote.gif
I have offered to split the cost with the seller. But I'm wondering whether there would be any chance of claiming the tax back at some stage?

Thanks




NOT the sellers problem, they can't control your country of residence or your countries tax policy. The seller needs the full value on the package so that if it gets lost they can claim insurance for the full amount. If they marked it £36 and it got lost, would you accept a £36 refund? I don't think so.

I hope the seller told you where to get off.



EK
 
Feb 1, 2008 at 4:05 PM Post #6 of 36
I only moved to the UK from Australia 6 months ago. I had never had this problem in Australia, stuff marked gift never got taxed.

I find it very strange that anything marked gift would be taxed? Does that mean if someone actually sends you a gift you have to pay tax on it?
 
Feb 1, 2008 at 4:12 PM Post #7 of 36
Wow, so its right gifts of value greater than 36 pounds attract VAT. What a disgrace. Fricken millionaires hide their money in Bermuda but if someone sends me a gift I gotta pay tax!!!!
 
Feb 1, 2008 at 4:58 PM Post #9 of 36
i am not being funny, but this country (UK) is apauling for this type of thing, you never heard the term "rip off britain"?

i am sorry for you, as it annoys me too, i have horendous bills with customs and the monopolized imposed clearance fee handling by parcelfarce, i am so over it now, but back when i was wet behind the ears i even got onto the legal department at PF, trust me they have go their bases covered and have an answer for everything.

i must have literally handed over thousands of pounds to PF over the years, i asked if i could setup an account as i was such a good 'customer' so i could be billed on a tab system to avoid undue delay of items in transit and charged in arrears, but no.

in fact the hold up, delay of mail or parcel getting to you is written in a very archaic old law in this country that states;
  1. Subsection 2d it is against the law to hold your packet by virtue of lien, this means holding it to ransom for payment of a fee, This is the important bit, Parcelforce will not deliver your parcel without payment of the HM C&E VAT and their Clearance fee. They are breaking the law, they must deliver your parcel without delay and invoice you for the fees.
  2. This is covered in section 105 of the act. They can charge a fee but it can only be obtained by civil action, this means if you don’t pay either of the fees - VAT or the clearance fee, Parcelforce can only take you to small claims court.

if you get anywhere with this, you will be the first person to do so.
 
Feb 1, 2008 at 10:27 PM Post #10 of 36
Not the problem of the seller - something you should be aware of and indeed factor it into the price that you may get caught for it.

Just to second other poster above, if its shipped by UPS/TNT or whoever, you will be stung, no question. USPS, much better chances.

Not that it doesn't suck though!

An aside to tell you about DHL. We received a package in work last week. It was a bunch of chemicals for a worldwide collaborative study. Sent out FOC as part of a scheme which is US government funded. DHL billed us for ~€500 even though the goods were free. Not only that, but I work in a government institution which pays no duties/vat etc - we have a clearance number that gets us by all that crap. DHL still wouldn't accept what we were telling them.

I have bought many times from people here and ebay etc, but only, and I mean only, if the seller will send it USPS.

Fran
 
Feb 1, 2008 at 11:28 PM Post #11 of 36
You shouldn't be asking the seller to "split" the cost. Import duties are entirely your cost.

You got off very easy only paying 25 pounds of VAT on a Tomahawk. Remember UK VAT is 17.5%! The seller probably did you a favor by marking the true cost of the amp lower than it actually was. You could easily have had to pay more.
 
Feb 2, 2008 at 12:04 AM Post #12 of 36
Actually, the VAT varies a lot for some reason. I received my Hornet a week or so ago and it was sent by USPS Priority Mail marked as a $100 "electronics" gift. USPS Priority Mail is handled by Parcelforce (Parcelforce 48). I was charged no import duties, but had to pay £10.72 in VAT and £8 in admin fees.
 
Feb 2, 2008 at 7:44 PM Post #13 of 36
Quote:

Originally Posted by milkpowder /img/forum/go_quote.gif
Actually, the VAT varies a lot for some reason. I received my Hornet a week or so ago and it was sent by USPS Priority Mail marked as a $100 "electronics" gift. USPS Priority Mail is handled by Parcelforce (Parcelforce 48). I was charged no import duties, but had to pay £10.72 in VAT and £8 in admin fees.


$34 + shipping? What a disgrace.
 
Feb 2, 2008 at 9:36 PM Post #15 of 36
Yeah i just got done for £43 on a item worth about £100. I was not impressed, especially with the £8 handling charge(Parcel Force). I'm probably not going to buy international again cause it's just not worth it, unless you get a seriously good deal or it's the only option.

I was thinking it would be great if there was a EU only sales forum here, it's frustrating sifting through all the internationals. Or maybe sub-sections like:

Headphones For Sale:
- EU
- United States
- Others

Or maybe everyone could just label their threads.
 

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