vat free diamonds

Bigfella213

Hi, I wondering how I can save the vat on a diamond ring in the uk. It's money I could spend on a better diamond. Can the company I buy from ship it to a country with lower or no tax and I pick it up from there? For example can they ship to a friend in Switzerland where vat is only 8% and flights are only £30. So on a £5k (before vat) i'd save several hundred pounds. This can go toward a better ring if that's the case. I don't know anyone coming here that could claim it back at the airport. I'm hoping shipping abroad will avoid the vat tax. If anyone has any advise or strategies for saving on vat that would be great.
I don't really want to buy online as I want to see the fire and sparkle in the diamond first. I'm hoping to negotiate with a jeweller on shipping options if they would work.

Thanks:beer:

Dead_keen

As this is a money saving site, have you thought about cubic zirconium? It's way cheaper than diamond and you wouldn't need to fly anywhere as ebay will have sellers who offer free postage. Also, you will save having to pay for a coffee with your friend. And there will be no queues at the airport. You will also feel better that you are not contributing to global warming. You just need to be careful not to buy zirconium disks as they don't have the same sparkle. Oh, and make sure that you do the ethical thing and don't buy blood/conflict zirconium.

Enterprise_1701C

Technically you would have to pay the VAT when you brought it back here anyway.

I don't know what the fuss is about diamonds anyway, they are so common! Get a different stone framed by diamonds, a tsarovite or tanzanite or the suchlike.

booksurr

the moment you bring in anything from any country which is not a member of the EC you must pay VAT at the border. The whole point of the EC VAT harmonisation rules is to ensure that there is no tax advantage to buying something in one EC country and moving it to another

Obviously Switzerland is a non member state so on disembarking at Heathrow you would declare the ring to customs and be given a bill for the UK VAT on import.

if you import direct to another EC country, eg: buy it in Amsterdam then you would pay Dutch VAT but would not have to pay any UK VAT when you repatriate your ring to the UK

unless your real question is what are the chances of you being caught if I try international diamond smuggling - do you feel lucky?

Bigfella213

i dont think customs will charge vat on it if its being worn and my girlfriend would spot a cubic whatever from a mile away. Let's the morals for another website. I'm just after ideas (legal ones) :-)

MacMickster

Bigfella213 wrote: »

i dont think customs will charge vat on it if its being worn and my girlfriend would spot a cubic whatever from a mile away. Let's the morals for another website. I'm just after ideas (legal ones) :-)

But your plan is to smuggle (illegally) the diamond into the UK. :doh:

Wayne_O_Mac

Bigfella213 wrote: »

i dont think customs will charge vat on it if its being worn

Congratulations for stumbling on a plan that has literally never been tried before. Those customs officers will surely have egg on their faces when they find out how you evaded them!

Bigfella213

the plan is not to smuggle it. It's to export it and pay the tax somewhere else that's cheaper. Saving money right?

Bigfella213

I've already mentioned I'm buying it in the UK. Then export to save VAT. Same as if a tourist bought it and claimed it back at the airport. Wherever it is sent there may be import duty eg Switzerland or no tax at all eg Hong Kong . I'm simply after suggestions. There must be people out there that have done it. You clearly like to pay your taxes.

Savvy_Sue

I am pretty confident that the only way to save the VAT if you're buying in the UK is to be an overseas visitor, and prove it.

However, if you've got the time to waste you could wander into a few jewelers and ask if it is possible to do what you are suggesting, ie buy the ring, export it, get the VAT back.

Although even then, I can't see that you'd save that much when you take into account the cost of exporting it, insuring it, and picking it up wherever you decide to go. Never mind the risk of losing it.

And either your g/f is going to see it before you buy it, or you're running the risk that she won't like it. Exporting and re-importing could make getting an exchange tricky. And if she's seen it, will she want to take it off her finger while you faff round saving money? I know I wouldn't ...

booksurr

Bigfella213 wrote: »

I've already mentioned I'm buying it in the UK. Then export to save VAT. Same as if a tourist bought it and claimed it back at the airport. Wherever it is sent there may be import duty eg Switzerland or no tax at all eg Hong Kong . I'm simply after suggestions. There must be people out there that have done it. You clearly like to pay your taxes.

it is not a question of liking taxes, it is a question of not breaking rules which make you a smuggler
buy in UK = pay UK VAT
on departure from UK claim back VAT provided destination is non EC country
on arrival in non EC country settle down and don't return for 12 months otherwise you will be a smuggler.
As you keep returning to the topic "will I get caught" this forum is not the right place for that sort of Q. Go talk to a criminal instead.