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What is my position with regards to Customs

Example; Buy a product in Canada while on holiday[Family of four]. The item in question's worth is over £175.00. Now Canada has abolished reclaim of GST & PST tax for tourists. So the item bought is inclusive of Canadian GST & PST taxes.[Goods sales tax & Provincial sale tax]
What is the position of us on return to UK? Any Tax owing to customs? How the customs will calculate if to tax/ Tax on the canadian GST & PST will be treated as tax?
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Comments

  • spiro
    spiro Posts: 6,405 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Try this link http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageTravel_ShowContent&id=HMCE_PROD_010220&propertyType=document

    It says you pay the duty and/or VAT on the whole value not just the value over the limit and you can't pool alowances. It makes no mention of any allowance you make for tax you have already paid.
    IT Consultant in the utilities industry specialising in the retail electricity market.

    4 Credit Card and 1 Loan PPI claims settled for £26k, 1 rejected (Opus).
  • phatbear
    phatbear Posts: 4,061 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    You have a duty free limit of £145 from outside of the eu, therefore if you spend more than that vat and duty will be payable on the whole amount, paying tax in any country outside of the eu is irrelevant so no allowance will be made for this.

    Im sure later on today someone will pop on this board and tell you they never get stopped and if you whip tags etc off of goods then you will be ok however speaking/typing as one of the people who catch the people who do such things I can assure you people do get caught and they loose their goods, and anything packed with the goods they also end up with a record with customs which may not seem a major issue but you never know when it will come back and bite ya on the bum.

    all the best

    the bear
    Live each day like its your last because one day you'll be right
  • snowshine
    snowshine Posts: 148 Forumite
    Part of the Furniture 100 Posts
    I am sorry if my question was not clear.
    What I want to know is, when it comes to identify the value of the product for customs purposes will the custom calculate the VAT & duty on the Item total price minus the canadian GST & PST?
    If so then can one off set their VAT & duty from what they paid as GST & PST in Canada?
  • phatbear wrote: »
    .... you never know when it will come back and bite ya on the bum.
    If one day, you DO catch me bear, perhaps I should change my username to..

    SOREBUM!:rotfl:
  • phatbear
    phatbear Posts: 4,061 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    The amount of vat and duty will be calculated on the amount paid for the item, ie including local tax etc.

    Therefore if someone thing cost you say $500 inc local tax then the vat and duty would be payable on the $500. In other words you will pay vat and duty on the local tax you have already paid.

    all the best

    the bear
    Live each day like its your last because one day you'll be right
  • phatbear
    phatbear Posts: 4,061 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    If one day, you DO catch me bear, perhaps I should change my username to..

    SOREBUM!:rotfl:


    I promise i'll be gentle with you.

    all the best

    the bear
    Live each day like its your last because one day you'll be right
  • mystic_trev
    mystic_trev Posts: 5,434 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    phatbear wrote: »
    I promise i'll be gentle with you.

    Do you draw lots as who gets to use the rubber gloves?! :eek:
  • withabix
    withabix Posts: 9,508 Forumite
    snowshine wrote: »
    Example; Buy a product in Canada while on holiday[Family of four]. The item in question's worth is over £175.00. Now Canada has abolished reclaim of GST & PST tax for tourists. So the item bought is inclusive of Canadian GST & PST taxes.[Goods sales tax & Provincial sale tax]
    What is the position of us on return to UK? Any Tax owing to customs? How the customs will calculate if to tax/ Tax on the canadian GST & PST will be treated as tax?

    What is it?

    Would it be really obvious that you had bought it in Canada?

    We bring far more back than we are supposed to every time we go to Canada - two of our four suitcases are always empty on the way out for that very reason!!

    Customs staff are a rarity these days, only coming out of their comfy chairs for flights from duty free locations and drug smuggling routes.
    British Ex-pat in British Columbia!
  • spaceman5
    spaceman5 Posts: 2,716 Forumite
    withabix wrote: »
    Customs staff are a rarity these days, only coming out of their comfy chairs for flights from duty free locations and drug smuggling routes.

    we just came back from the us, a bit cheesed of, as i kept to our quota for tobacco as stated on the customs website, 250g of tobacco, even though i could see people getting on my flight with over a 1000 cigarettes in duty free bags, i did not want to take the risk of getting caught out, got to london, not one customs officer to be seen, wish i brought the 1 kilo box now that was on special offer, that would have kept me going for the next year, and what i dont understand is, in these duty free shops you have to show your boarding pass b4 u get served, so they know what country u r travelling to, so why do they serve people with well over the stated regulations that they have plastered all around the shop, Dave.
    Take every day as it comes!!
  • phatbear
    phatbear Posts: 4,061 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    spaceman5 wrote: »
    we just came back from the us, a bit cheesed of, as i kept to our quota for tobacco as stated on the customs website, 250g of tobacco, even though i could see people getting on my flight with over a 1000 cigarettes in duty free bags, i did not want to take the risk of getting caught out, got to london, not one customs officer to be seen, wish i brought the 1 kilo box now that was on special offer, that would have kept me going for the next year, and what i dont understand is, in these duty free shops you have to show your boarding pass b4 u get served, so they know what country u r travelling to, so why do they serve people with well over the stated regulations that they have plastered all around the shop, Dave.


    Because you can buy what you want as long as you're willing to pay the vat and duty on the items.

    Or do you expect them to be aware of the customs allowance of every country in the world?

    all the best

    the bear
    Live each day like its your last because one day you'll be right
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