Import VAT on no value spares?

Maharishi

Elsewhere wrote: »

I don't think you should have to pay anything. This isn't quite the same, but I'd think the principle applies

http://www.dutycalculator.com/help_center/my-goods-were-sent-outside-the-eu-to-be-repaired-do-i-have-to-pay-import-duty-and-vat-when-they-are-returned-to-me/

See also "No there shouldn't but it's a known tax/duty avoidance technique, mark a parcel as 'warranty replacement' to avoid it.
Hence why when Parcelforce pay it on your behalf, you have to pay them to release the parcel & then you can submit a claim to get the money refunded." from http://singletrackworld.com/forum/topic/import-duties-on-warranty-replacements-from-the-usa

That was what I had already decided was the best course of action; pay up and then claim it back. Just so irritating.

Thank you.

wealdroam

Maharishi wrote: »

Currently, the $ to £ is 1.48 on XE.com, so God only knows how the VAT levied on approx £77 equates to £21.72.

If my sums are right, £21.72 equates to VAT on £108.60.

Remember, when VAT is charged, it is charged on the total of goods value + carriage cost + insurance (if any).

Could it be that the shipping costs were £31.60?

Such that VAT was levied on £77 + £31.60?

Not sure that HMRC use XE.com, so there is room for some discrepancy there too.

zenmaster

I'm pretty sure you are out of luck.

Rules and regs

My goods were sent outside the EU to be repaired. Do I have to pay import duty and VAT when they are returned to me?

No duty and VAT will be payable if the goods have been repaired free of charge and you can provide a copy of the guarantee/warranty agreement to your shipping provider for presentation to customs.

If you have to pay for the repair, duty and VAT will be charged on the repair costs only.

If the goods have been replaced free of charge under guarantee or warranty, no duty is payable. However, VAT is payable on the full value of the goods because all replacement items are treated as new goods for VAT purposes.

VAT is charged on the value of the goods, not what you paid for them.

I ran it through the Import duty & taxes calculator using the following details from your post -

Importing from: United States
Importing to: United Kingdom

Product description: Wheels
Product category: Instrument Cases
Product value: US$114.99
Country of manufacture: United States


Shipping costs: US$0.00
Insurance costs: US$0.00

The result of this is

Total customs value (CIF): £77.14
- Duty: £0.00
- VAT: £15.43

VAT is also payable on shipping and insurance.

If I add in $40 for that then the VAT due comes out at £20.79.

Unfortunately the site only allows 3 calculations before you have to sign up for their paid service, so I can't refine it.

So is the shipping/insurance around $45?

You could ask SKB if they would refund the charge but I don't think that you can insist on it.

So it's not ideal but, if the worst comes to the worst, you did get your (I guess) rather expensive flight case fixed to a fully working condition for £30.

Let's hope it lasts for long time into the future.

zenmaster

wealdroam wrote: »

If my sums are right, £21.72 equates to VAT on £108.60.

Remember, when VAT is charged, it is charged on the total of goods value + carriage cost + insurance (if any).

Could it be that the shipping costs were £31.60?

Such that VAT was levied on £77 + £31.60?

Not sure that HMRC use XE.com, so there is room for some discrepancy there too.

And again :mad:.

HMRC may well use XE but almost certainly not at the same time as the OP therefore the rate more than likely will not be the same.

wealdroam

zenmaster wrote: »

And again :mad:.

Excuse me? Care to expand on that?

zenmaster

wealdroam wrote: »

Excuse me? Care to expand on that?

I spent ages typing in my post only to find that the two of you had posted the same information in the meantime.

Not that your information was incorrect.

Apologies.

Maharishi

wealdroam wrote: »

If my sums are right, £21.72 equates to VAT on £108.60.

Remember, when VAT is charged, it is charged on the total of goods value + carriage cost + insurance (if any).

Could it be that the shipping costs were £31.60?

Such that VAT was levied on £77 + £31.60?

Not sure that HMRC use XE.com, so there is room for some discrepancy there too.

There is no mention of shipping costs on my paperwork. Clearly, there are shipping costs but I do not know what they amount to. Your surmision may well be correct though.

Maharishi

zenmaster wrote: »

I'm pretty sure you are out of luck.

Rules and regs



VAT is charged on the value of the goods, not what you paid for them.

I ran it through the Import duty & taxes calculator using the following details from your post -



VAT is also payable on shipping and insurance.

If I add in $40 for that then the VAT due comes out at £20.79.

Unfortunately the site only allows 3 calculations before you have to sign up for their paid service, so I can't refine it.

So is the shipping/insurance around $45?

You could ask SKB if they would refund the charge but I don't think that you can insist on it.

So it's not ideal but, if the worst comes to the worst, you did get your (I guess) rather expensive flight case fixed to a fully working condition for £30.

Let's hope it lasts for long time into the future.

It'll see me out, that's for sure ...
VAT gets you any which way they can, it seems. I'll ring them tomorrow and ask should I spit on my own @ss or do you wanna do it dry?

visidigi

shaun_from_Africa wrote: »

That link just seems to state that SKB will cover the return costs for something that was sent for them to repair:

and makes no mention of the same applying when they just send out spares for the owner to fit themselves.

That's why I mentioned earlier about being entitled to claim VAT relief on the import of repaired goods if you had sent something out of the EU for repair under warranty.

However, there's certainly no harm in contacting the customer support dep't of the company and asking if they would be willing to cover the costs.

Your's says TO.

Mine says FROM.

The line you highlighted was they wont pay to get it back o them to be repaired...

shaun_from_Africa

visidigi wrote: »

Your's says TO.

Mine says FROM.

The line you highlighted was they wont pay to get it back o them to be repaired...

Not quite.
The quote you gave refers to return shipping and "return" by its very definition means sending back so how can they cover the cost of returns if something hasn't been shipped to them in the first place?

SKB is not responsible for the shipping cost to our facility. However, SKB will cover all of the costs of repairs and/or replacements, as well as the return shipping.