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Buying A Phone Abroad

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  • Roger1
    Roger1 Posts: 1,603 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Given that MSEers must be pretty bored by now, I'm not going to extend this unnecessary correspondence - and I will certainly not join in name-calling - except to point out:
    • I pointed out that there was no Import Duty on mobiles imported from the US;
    • assumption: VAT would be charged if the acquisition value was more than £390;
    • you suggested that 'Import VAT' would be charged at 20% as if it were relevant, by implication an extra charge;
    • the OP is thinking about buying a mobile WHILE IN THE USA. Although your points about 'the transport costs, packaging or insurance for carriage of the item' are no doubt highly interesting to you, they are irrelevant to the OP.

    In fact, if the OP can buy a phone for £390 or less and has no other items to declare on return to the UK, there will be 0% import duty and 0% VAT to pay.

    Simple, really.

    Here is a helpful link for you: http://www.hmrc.gov.uk/customs/arriving/arrivingnoneu.htm

    That's it. I will ignore any more amusing comments.
  • d123
    d123 Posts: 8,731 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    jerryhere wrote: »
    i don't buy from usa ,but i also bought my android phones from china supplier -spambuying.com ,their price is cheap and unlocked smartphone .even though it is some not famous brand ,but it is more cost-effective

    Smell that spam

    :spam: :spam: :spam:
    ====
  • silvercar
    silvercar Posts: 49,564 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper



    A 16bg iPhone 6 in the UK would be £539 when bought outright, compared to $649 ($706 after tax) in USA which works out around £430. So nearly £100 saving.

    You could buy the top end 128gb iPhone 6 for more or less what it would cost you to buy the bottom end 16gb one in the UK.

    Seriously thinking of doing this. Current exchange rate means 649$ equates to about £410. Assuming I can claim tax back at the US airport. Intend buying from an apple store if they have stock available and can sell unlocked. Looking online apple stores in USA seem to still sell locked to a contract.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Roger1
    Roger1 Posts: 1,603 Forumite
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    silvercar wrote: »
    Assuming I can claim tax back at the US airport.
    I don't think you can do this and suggest you check. Please let us know if you succeed.
  • silvercar
    silvercar Posts: 49,564 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    edited 7 November 2014 at 8:44PM
    Roger1 wrote: »
    I don't think you can do this and suggest you check. Please let us know if you succeed.

    You are right, it's not possible, certainly not in New York. other states may have different rules.

    Still thinking about it.

    Visited the nearest apple store here in New York. Apparently there is an LTE issue; something about whether all 4G channels will be available in the UK as different providers have bought different LTE channels to provide 4G. Said it should be OK if I make sure I purchase the A1586 GSM model of the iphone6.

    Sales tax here is 8.875% so 649$ becomes 706$. Rough exchange rate, allowing for credit card charges etc is 1.55. Meaning £456 rather than £539. £83 saving....

    Just to add, apple warranties are no longer world wide; if there was a fault I could end up being charged a shipping fee for the phone to be returned to the US for repair.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • d123
    d123 Posts: 8,731 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    silvercar wrote: »
    You are right, it's not possible, certainly not in New York. other states may have different rules.

    Still thinking about it.

    Visited the nearest apple store here in New York. Apparently there is an LTE issue; something about whether all 4G channels will be available in the UK as different providers have bought different LTE channels to provide 4G. Said it should be OK if I make sure I purchase the A1586 GSM model of the iphone6.

    Sales tax here is 8.875% so 649$ becomes 706$. Rough exchange rate, allowing for credit card charges etc is 1.55. Meaning £456 rather than £539. £83 saving....

    Just to add, apple warranties are no longer world wide; if there was a fault I could end up being charged a shipping fee for the phone to be returned to the US for repair.

    The statement in bold is nonsense, both variants of the iPhone 6 have all LTE bands used in the UK (being bands 3/7/20) even future possible use on bands 1 and 8 are covered (if a network was to reallocate 900MHz or 2100MHz to LTE).

    https://www.apple.com/iphone/LTE/

    The warranty situation is true, the warranty is now applicable in region of sale.
    ====
  • silvercar
    silvercar Posts: 49,564 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    d123 wrote: »
    The statement in bold is nonsense, both variants of the iPhone 6 have all LTE bands used in the UK (being bands 3/7/20) even future possible use on bands 1 and 8 are covered (if a network was to reallocate 900MHz or 2100MHz to LTE).

    https://www.apple.com/iphone/LTE/

    The warranty situation is true, the warranty is now applicable in region of sale.

    Thanks for that. V helpful.

    So now the only issue is the warranty- though that may be a risk worth taking and the import tax. I assume that hmrc would use the official exchange rate, so we are at about 1.6 which equates to £405. I don't suppose that they would consider valuing the phone, cable and plug point separately, which would mean that one person could legitimately bring in the phone and someone else the cable etc?
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • gjchester
    gjchester Posts: 5,741 Forumite
    silvercar wrote: »
    So now the only issue is the warranty- though that may be a risk worth taking and the import tax. I assume that hmrc would use the official exchange rate, so we are at about 1.6 which equates to £405.


    More or less - http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageImport_RatesCodesTools&propertyType=document&id=HMCE_PROD1_033457


    I think you maths is a little out but it will vary as the exchange rate shifts I guess its more likely to be £440 for the phone and US tax.


    HMRC may also charge you 2.5% duty, see my prior post. To simplify tax at an airport they charge a harmonised rate on all goods, NOT the published rate as if you were only bringing in one type of item.


    If you travel to the US often(or know people there who can help you out) the warranty may not be an issue. If you declare it then you probably would be looking at £440 plus 2.5% import Duty and then 20% import vat, and that takes it pretty much to the UK Price.


    The key bit there being if you declare it.

    silvercar wrote: »
    I don't suppose that they would consider valuing the phone, cable and plug point separately, which would mean that one person could legitimately bring in the phone and someone else the cable etc?


    Its not worth the hassle. Try goggling Tax avoidance and Tax evasion, one is legal the other may carry fines or a prison sentence.


    Realistically it not likely to happen, if they ask they'll work on the receipt you have, and that will detail the purchase as one unit.
  • silvercar
    silvercar Posts: 49,564 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    More or less - http://customs.hmrc.gov.uk/channelsP...E_PROD1_033457


    I think you maths is a little out but it will vary as the exchange rate shifts I guess its more likely to be £440 for the phone and US tax.

    I was assuming that the price of the phone was the price of the phone, not the price of the phone plus US tax.

    In this case £440 or £404 are both over the threshold :(
    If you travel to the US often(or know people there who can help you out) the warranty may not be an issue.

    Not enough people, going often enough, with enough spare time to hang round an Apple store sorting out a warranty issue for a phone that isn't registered to them.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
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