Tax on bringing back ipad/iphone from USA?

bubblemummy

Hi all.

I have a friend going to the US in a couple of weeks and I was going to ask her to bring me back an ipad or new iphone (my iphone was stolen last week). I am completely ignorant when it comes to import taxes. Would customs stamp a tax on it? If so, how much? (If so, I may as well buy them here). They are over £100 cheaper in the US. Thanks all.

chattychappy

You friend will have a duty free allowance of £390.

So if the total of what she brings in is less than this, then nothing is payable, no need to declare, she can use the green channel. The goods must be for her own use or a gift (NB so you can't pay her for the stuff).

Else she must declare. Duty will be added, and then VAT (to the value after duty's been added - yes you pay VAT on duty!).

Duty will likely be 2.5% or less on mobile phones (depending on the overall value)... VAT at 17.5% is the big one.

gjchester

bubblemummy wrote: »

Hi all.

I have a friend going to the US in a couple of weeks and I was going to ask her to bring me back an ipad or new iphone (my iphone was stolen last week). I am completely ignorant when it comes to import taxes. Would customs stamp a tax on it? If so, how much? (If so, I may as well buy them here). They are over £100 cheaper in the US. Thanks all.

Assuming she plans on declairing it, and technically it's illegal anyway as it should be for her personal use or as a gift (ie you can't pay, or pay in kind)

IIRC Phones and laptops are zero rated for duty so you'd just pay VAT on it. Friends who got the £300 Nexus One had to pay £60 in VAT on it (plus DLHL fee's)

Ipad will probably be classed as a computer laptop.

However remember you may have to return it to the US if it needs warranty service or show you have a US home residence and you are visiting.

Also US prices are generally shown without sales tax, that can add anything form 0 to 20%, depending on local and state taxes
For example likely destinations are.. New York at 8.75%, Florida 6% plus city taxes and California up to 10.25% again dependand on city tax.


Given the sales tax and the VAT (again assuming it's declaired) is it worth the saving?

Using the trusty 90210 postcode..

16GB Ipad $499 plus $50 tax in the Apple store. Thats $550 which is £370/380 Add on VAT and your back in the £460 or so mark. Is the potential warranty grief and the hassle worth it for the saving?


http://www.hmrc.gov.uk/customs/arriving/arrivingnoneu.htm

is the offical line

watcherman

I don't think they'll work out that much cheaper to be honest. Then there is some debate whether Apple will honour warranty or not.

flyingscotno1

Can you not claim the US tax back (when you leave) if you spend more than $200 in a transaction or am I making that up?

Exhortation

Would it not be much easier just to claim for the stolen iPhone on your house insurance?

jimbms

watcherman wrote: »

I don't think they'll work out that much cheaper to be honest. Then there is some debate whether Apple will honour warranty or not.

No debate at all it is quite plain on all Apple sites and their products that ipad and iphones warranty is only valid in country of purchase.

Jon_01

flyingscotno1 wrote: »

Can you not claim the US tax back (when you leave) if you spend more than $200 in a transaction or am I making that up?

I go over there about once a year and have given up on it. You'll get different info from different people.

You need this form or that form, but its always the wrong one and, I'm told, they can take months to years to refund it even if you get the right one...

Charliezoo

I'm pretty certain the iPhone 4 is not available sim free yet over there and all iPhones will be locked to AT&T in the US.

gjchester

Charliezoo wrote: »

I'm pretty certain the iPhone 4 is not available sim free yet over there and all iPhones will be locked to AT&T in the US.

Good point, forgot that. Plan on buying a 2 year AT&T contract with the Iphone of any sort. The 3GS and the 4 both are not on PAYG yet in the US

Plans start at $40 a month for 2 years...

johnnyroper

i have brought back electrical goods from US before like psp,nintendo ds and an xbox illegal i know but did not declare so did not pay duty.