Import Duty on Internet Orders

Babbler · 8 March 2005 at 11:16AM

Hello,

Can anyone tell me what I would have to pay on an order of approx $400 from the US? How does it work?

Thanks.

MJSW · 8 March 2005 at 2:19PM

It really depends on exactly what you intend to import. You will have to pay VAT at 17.5% on almost everything (books being the main exception). You may also have to pay import duty, and the rate on this depends on the type of product.

There's a guide at Customs website which will probably tell you what you need to know. See http://www.hmce.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_PROD_009989

Babbler · 8 March 2005 at 2:47PM

Thanks. I have now found the information I needed on that site

R0CKY · 16 June 2005 at 1:09AM

Two questions here

1. Why do we have to pay VAT on imported goods when (a) you can't even buy the goods in the UK anyway and (b) what have my purchases of products manufactured abroad got to do with the UK government?

2. Is there any avoiding it?

Case in point - I got charged VAT because an imported T-shirt was 4 pence over the C&E threshold (£18) for avoiding VAT.

littlereddevil · 16 June 2005 at 8:18AM

I agree with you Rocky
Only way round it i have found is to get someone you know in the country to send it to you as a gift.

Elaine_Wilson · 16 June 2005 at 5:31PM

As to the why, I view it like this.

VAT is a tax that we pay on our spending, although it is collected by the person selling us the goods. This is then passed on to HM Revenue and Customs. When you buy something from abroad the seller will not collect the tax on behalf of our government.

If you were to be let off the tax this would give an unfair advantage to foreign traders over those in our country. So to keep things fair the tax is collected at the point of importation.

I don't see anything wrong in principle with this but I can understand that you feel miffed when you were so close to avoiding the tax altogether.

As to avoiding the tax I don't know how it can be done legally. I have seen parcels of books marked as samples even though they were charged for. This seems a bit crooked to me but might be a valid loophole.

Anyway, I do sympathise with you.

Regards

Bossyboots · 16 June 2005 at 9:27PM

Elaine_Wilson wrote:

As to avoiding the tax I don't know how it can be done legally. I have seen parcels of books marked as samples even though they were charged for. This seems a bit crooked to me but might be a valid loophole.

There isn't any VAT payable on books though.

empfun · 16 June 2005 at 10:25PM

A handy one would be to go to visit the country where you are purchasing your goods from, use it a bit and then bring it back with you.

R0CKY · 16 June 2005 at 11:03PM

Elaine_Wilson wrote:

As to the why, I view it like this.

VAT is a tax that we pay on our spending, although it is collected by the person selling us the goods. This is then passed on to HM Revenue and Customs. When you buy something from abroad the seller will not collect the tax on behalf of our government.

If you were to be let off the tax this would give an unfair advantage to foreign traders over those in our country. So to keep things fair the tax is collected at the point of importation.

I don't see anything wrong in principle with this but I can understand that you feel miffed when you were so close to avoiding the tax altogether.

As to avoiding the tax I don't know how it can be done legally. I have seen parcels of books marked as samples even though they were charged for. This seems a bit crooked to me but might be a valid loophole.

Anyway, I do sympathise with you.

Regards

Thanks for the explanation Elaine.

So, it's not a tax on the goods, it's a tax on the spending. So for every penny I spend on goods, the government wants a slice of it, regardless of where the goods come from?

Up until now I had never heard of a tax on spending, and I'll be not many people know that VAT is not actually a tax on goods. It kind of shocks me, I get paid, the goverment takes a third in tax and gives me the rest, then they also take 17.5% of the money they leave me with? Is it just me or has half my salary just gone to the government?

However there is no disadvantage to UK traders when the product is not available in the country, so to me this seems an unjust tax when applied to imported good not available in the UK.

Where does the "Value Added" part come in anyway, what exactly has been added value wise in this transaction, or is that just a clever piece of wording?

I admit I am not very savy with money matters, but if the above is true, it gets my back up.

R0CKY · 16 June 2005 at 11:07PM

Someone mentioned books being exempt.

Here's a list of exemptions - note the limit of "gifts".

Are there any reliefs from Duty and VAT?
Yes, they include:
Goods of £18 or less in value (excluding postage, packing and other miscellaneous costs) this does not include alcohol, tobacco products, perfume or toilet waters.
Gifts from one private individual to another providing the value does not exceed £36. (Exception: There is a very restricted gift allowance on excise goods but you are advised to contact Customs for further information.)
Personal effects of people returning to the EU after residing abroad.
Goods found to be defective or damaged or not otherwise as ordered. (Customs must be notified before qualifying goods can be returned overseas. Otherwise duty relief may be lost.)
Goods imported into the EU for processing and repair before re-export from the EU. (Your local office of HM Customs and Excise can provide you with further details.)

No mention of books there...?

R0CKY · 16 June 2005 at 11:17PM

Customs Regualtions for internet shopping at http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageTravel_ShowContent&propertyType=document&resetCT=true&id=HMCE_CL_001454

They have a pdf file which even identifys which products pay which fees. Frustratinglt the pdf files shows that books pay no import duty, but it says VAT is due at either nil OR full 17.5% which is very confusing.

http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_PROD_009989

Import Duty on Internet Orders

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