Avoiding EU VAT buying from abroad?

Retouch

Sorry, i'm sure this thread is in the wrong place but i didn't know where to start it. If someone could move it to the right place after reading it that would be much appreciated.

Right, this is a long shot but i am hoping it will work. There is a product i would like to buy from Germany (I am in the UK) and within the EU (unless VAT registered) you have to pay the German VAT which is 19% ontop of the price of the product..If buying from outside the EU, you don't have to pay it.

The particular product in question requires the buyer to pickup the product/have a days training course for it's use….Therefore i am thinking that i could get a friend or relative to purchase the product from, let's say Australia, stipulating that i, their friend or relative, will be collecting the product and doing the training course for them.

Will this be a feasible workaround for dodging the MASSIVE 19% hit?

Hope that all makes sense.

Thanks
Charlie

trailingspouse

Shall I?

Right, Charlie - this is a site about money saving, not tax dodging.

pjclar02

trailingspouse wrote: »

Shall I?

Right, Charlie - this is a site about money saving, not tax dodging.

Isn't it a site about cutting tax? In which case it is a legitimate place to ask the question - but ultimately what is being proposed is likely to be construed as VAT fraud

00ec25

Retouch wrote: »

, their friend or relative, will be collecting the product and doing the training course for them.

and what will friend/relative say to UK customs when asked where the product originated and have they proof that VAT has been paid?
or were you intending to add smuggling to your portfolio?

Thrugelmir

Retouch wrote: »

The particular product in question requires the buyer to pickup the product/have a days training course for it's use….

Then the supply is being made in Germany, the product isn't being exported.

Retouch

In hindsight i guess my original post does come across a little criminal but that was honestly not my intention. I should have put it more simply.

Is there a way in the predicament i discribed, to avoid paying the german VAT. for instance, if my friend outside the EU purchased the item and had it delivered to his address (paying a lesser import duty than the german VAT) then sends me the item as a gift….Is that legal?

Please no more responses from the above members. It gets so tiresome to have to reply to the territorial lot.

Thrugelmir

Goods imported still incur import duties along with VAT. A gift does not infer the right of no tax being payable.

redux

If the goods are consigned to another country, they would be expected to arrive there, and before that to be exported from Germany, for which there should be proof.

You would probably have to appoint a customs agent to handle the paperwork for that, and they are not going to be party to an arrangement such as what you're looking for, as they or the manufacturer might become liable for the VAT and then want to charge it to you, though I don't know how that would work.

This might help

http://europa.eu/youreurope/business/vat-customs/cross-border/index_en.htm#germany_en_doing-business-outside-eu

Exporting goods from Germany to a territory outside the customs territory of the Union

When exporting goods from Germany with a destination in an area outside the customs territory of the European Union, the export procedure is to be followed. This is set out in Council Regulation (EEC) No. 2913/92 of 12 October 1992 establishing the Community Customs Code from 19 October 1992 (ABI. L 302 from 19.10.1992, S. 1-50) (cf. article 161 and article 182 Customs Code) and additionally regulated in the Foreign Trade Regulation. This is designed for the application and monitoring of the communal and national foreign-trade restrictions on exports of Community goods and the re-export of non-Community goods in conjunction with a customs procedure with economic importance (e.g. customs warehouse procedure and inward processing). It also serves the safety of the supply chain.

Then once you imported it to the UK from that other country, you would have to travel through a red channel for something to declare at customs and pay VAT and possibly import duty as well.

Even if the goods are secondhand, you would still be liable for duty and VAT based on their value, unless you can prove that VAT was paid on the original sale within the EU when they were new. I think there are exemptions for when the person has owned something long term while living out of the country, but that won't apply.

Failing to declare the goods and pay is a criminal offence, and if the smuggling was detected the goods would be confiscated.

No chance, in other words, or too much risk and aggro. If it was easy it would be happening with billions worth of goods.

CKhalvashi

Redux's explanation is correct in the terms of used vehicles, so I can only assume it's the same for other goods.

We acted as an agent for 2 vehicles coming into the UK from Georgia last year, one (bought in Germany) was customs cleared with nothing to pay, the second (originally from USA) wasn't customs cleared, and if I remember rightly had VAT of £1500 to pay when it hit the border.

The one was Germany was required to show a German receipt for purchase, to prove that VAT could not have been reclaimed at that point.

CK

trailingspouse

Here's a thought - you could get your Australian friend to do ALL your shopping for you, thus avoiding the 20% VAT you're paying all the time in the UK.

And for goodness sake, don't visit Ireland - it's 23% over there!!

summerhill1973

I bought 2 dresses from a UK-website - when they arrived they were unsuitable and I'm returning them, however, I've to return them to China! They cost me £130 in total - and £30 to send them back with a Tracking Number - the courier now tells me they're being held in customs in China and I've to pay £60 for Duty & VAT. Can I reclaim this £60 as I'm simply returning the goods to china? Any advice please