tax and duty for imported goods

Pietro1_2

hello.
can you tell me, my calculation is ok??
i intend to buy a motorcycle part from usa via internet.
i know item code, as i called already to custom officer, he told me also using this code that:
duty rate for this item is- 3,7%
VAT-20%
he told me over the phone how to calculate it(im not sure i understood everything properly as im not english)

item value:287 dollars-177,5 pounds
parcel fee: let say 60 dollars-37 pounds

177,5+37=214,5 so thats customs value,
214,5 X 3,7% duty rate=7,93 pounds (DUTY)
214,5+7,93X20%=44,48 pounds(VAT)

so all together:i would pay 52,41 pounds all fees for this item,which is still reasonable to do it because UK price of this part is twice more higher!!
is it right calculation?
is it any reason they can ignore US invoice and calculate all fees using a UK price to force me to pay higher tax and duty?
ps. i used online duty calculator, put all values as above, and put insurance amount 300 dollars and result was 102 pounds....
so im confused...

JasonLVC

Your calculation is correct....but you have not included insurance value.

HMRC will take the value shown on the package, convert to UK Pounds then add Duty and then add VAT on top (thus you have goods + duty + VAT).

They will not use any other price other than that shown on the package so it is important the sender shows the proper cost/value.

The reason why the online calculation comes out at £100 is because it is including the value of the insurance whereas your calculation you have not included it.

Yes, the proper calculation is value of goods + freight + insurance and then add duty and then add VAT. if the package doesn't show an insurance charge then HMRC will not include in the calculation but the sender will likely show the insurance on the paperwork in order to ensure the item is actually insured, so you're sor of caught by that.

So the calc is £177,50 goods + £30 freight + £183 insurance ($300 at same rate you used for other elements).

So we have a value of £390.50 then x 3.7% = £14.44 duty

Then take the £390.50+£14.44 = £404.95 then add VAT = £80.98

So total cost of taxes and duty will be £14.44 plus £80.98 = £104.42 which isn't far off the online calculation you ran.

Pietro1_2

thank you for your help!
it was proper explained, and also i realised there is no point to try save some money because army of clerks doing their best to make your live as hard as possible...
In States someone who have same bike like me will pay twice less for repair, but Europeans have to pay EU extortion, to make sure that army of clerks will get payout every month from our taxes....
sad but real...

agrinnall

How can the insurance cost more than the item that is being insured? Surely it would be cheaper not to bother insuring it and if it got lost or broken just buy another one? Obviously if it happened more then once you'd end up out of pocket but how likely is that?

Gas_Powered_Toothbrush

Pietro1 wrote: »

but Europeans have to pay EU extortion, to make sure that army of clerks will get payout every month from our taxes....
sad but real...

You clearly have no understanding of the purpose of taxation and it's best if you don't speak again on the matter.

John_Pierpoint

The purpose of this taxation is partly so that the politicians can spend nearly 50% of the product of the country on our behalf.
The other purpose is to create a "protective" tariff wall round fortress Europe to keep out the "ridiculously" cheap goods produced by workers getting paid a tenth of our minimum wage. (While subsidising EU exports to other continents, as the VAT is reclaimable on Exports).

dzug1

There's an additional cost that's been left out - the company that delivers the item to you may charge a fee for clearing it through customs on your behalf

Pietro1_2

Gas_Powered_Toothbrush wrote: »

You clearly have no understanding of the purpose of taxation and it's best if you don't speak again on the matter.

well, i will say whatever i like it especially if its true,
no one force u to read my posts, comment it,
besides that not a subject of my request (if u still dont know that genius)
i received answer for my question at 1st post,and im glad of that,
so if u dont like my conclusion about it, thats your problem.
taxes is one thing, but stealing money and telling u thats a low, thats other thing. this is what i call legal extortion.
that accurate word describing this situation.(exactly same part,exactly same part number,obviously genuine part, yamaha in this case, but Europeans have to pay twice more than US guys.)
do u see difference between taxes and extortion now genius??