We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Minimising import VAT on free goods?

First, sorry for posting here. I couldn't think which other forum this might belong in and I figured eBayers might have some insight into postage & customs/import VAT.

I recently received some free goods (brand new) from an overseas company. The retail value was £30 and that's what was declared on the customs form. I was hit with a £14 customs charge (£6 VAT, £8 handling).

Fair enough; I still got the goods at half price. Obviously though, I'd like to avoid this in the future though!

They're not a gift per se, as they're from a (small) company rather than a person. The company gives them to me so I can showcase them on my blog. I do get to keep them and use them afterwards though.

Any ideas?

At the moment, she's declaring the full retail price. Can she instead declare the value at cost price, as that's presumably what goes through her accounts? That'd reduce the declared value below the magic £15 half the times.

The originating country is Canada. I don't think there's any way to prepay the VAT (it's the £8 handling charge that I object to). I'd like to be wrong though :) .

Comments

  • RFW
    RFW Posts: 10,491 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    I would have thought that it is technically a sample so the retail price is not the right price. You could let them know the situation. It may be that they don't want you to know the cost price but it doesn't need to be accurate.
    Some couriers are pickier than others and use the charge to add to their profits, so a change of courier may give different results.
    .
  • Lulu10
    Lulu10 Posts: 2 Newbie
    edited 28 November 2013 at 1:05PM
    Unfortunately the courier is Canada Post and the declaration is made by the person shipping and HMRC are taking it at face value, so there's no problem on that front.

    I was hoping it'd be possible to class as a sample (that's an option on the Canada Post declaration), but in reality the items haven't been rendered inactive/unusable, I use them for myself after using them for the marketing purposes and I could even resell them.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.1K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.3K Spending & Discounts
  • 247.1K Work, Benefits & Business
  • 603.7K Mortgages, Homes & Bills
  • 178.3K Life & Family
  • 261.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.