Import Charges - Vat

Hughesy84

Hi guys and gals.

Few questions I need some help with please. Iv tried looking at the HM website but I cant work it out.

If im buying mobile phone accessories from Hong Kong - what charges/ tax and VAT will get charged??

Is there limits/ minimums etc?

Thanks

James,_Oxford

Basically, VAT is charged on the goods as if they were supplied by a registered person in the UK. This is to protect domestic suppliers.

If you import goods from EU countries (technically known as an 'acquisition' rather than an import) the rules are different.

Hughesy84

So if im buying stuff in - what does it cost me?

17.5% VAT? Or is there a way around it?

James,_Oxford

You'll pay VAT on top, which is 15% at the moment. You need to pay this when the goods arrive in the UK. There is a way around it - but you could end up in chokey.

Hughesy84

Whats the way mate?

Ok what else is there - import charges?

baby_frogmella

you will only have to pay VAT on goods whose value exceeds £18. Taken from http://www.hmrc.gov.uk/customs/post/buying.htm

"If you order or send purchased goods other than alcohol, tobacco, perfume and toilet water from a country outside the EU then you:

• don’t have to pay Excise Duty
• may have to pay Customs Duty on goods with a value that exceeds £120
• will have to pay Import VAT on goods with a value that exceeds £18

Note that on all goods from outside the EU, Customs Duty is waived if the amount of duty calculated is £7 or under."

Hughesy84

The item cost will be £1.22 each - however I will be buying in big bulk - so orders could be worth well over £600 total.

Say its £600 total (but each item worth £1.22) - what costs will I have to pay?

dzug1

Don't know if your goods are dutiable or not - but there will be VAT on £600 anyway.

Your carrier may charge you a fee for collecting it as well.

Hughesy84

The supplier is including the postage in the £1.22. So that should be the handler cost sorted shouldnt it?

Will I have to pay VAT if the items are only worth a small amount each?!

Hughesy84

Anyone know the answers?

baby_frogmella

I suggest you give the VAT office a call on 029 2050 1261 they will give you more info