Royal Mail & the Taxman Ransomed packages!

redmike123

Thanks Soolin,

You are more experienced than me in these matters so I am sure you are right. It just strikes me as odd that VAT and import duty can be levied on secondhand goods. I felt fairly sure that secondhand goods bought and sold within the UK were exempt from VAT. It would appear that this is not the case for imports.

I am glad that I spotted this thread because I was just about to (hopefully) place the winning bid on a rather nice raincoat from the USA. At £20 ish plus about the same in postage it would have been a good buy, if however, import duty and VAT were added at the ridiculous levels the OP and other posters mentioned, then perhaps not so much of a bargain.

custardy

buy parts from a scrapyard and they have VAT in the price in the UK so it stands on 2nd hand purchases here
fee's and import duities can be checked on the RM site and i assume any other courier

JohalaReewi

redmike123 wrote: »

If I were to purchase goods - for example a raincoat, from a private vendor in the U.S. I would make the assumption that it was second hand/used.

The raincoat may or may not have actually been worn, but because I was purchasing it from an individual and not a shop or a retail business, I think that its a reasonable assumption to make.

I don't think that either VAT or import duty is normally charged on used goods sold by private vendors - is it?

The clue is in the word Purchase. This means it isn't a gift.

HM Customs information is here...
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageTravel_ShowContent&propertyType=document&resetCT=true&id=HMCE_CL_001454

In particular.

From 19 July 2007, excise duty is due on all excise goods (including tobacco and alcohol products) received via post from abroad, including occasional gifts and goods ordered online. This applies to goods sent from EU and non-EU countries.

Stan_Morris

redmike123 wrote: »

Thanks Soolin,

You are more experienced than me in these matters so I am sure you are right. It just strikes me as odd that VAT and import duty can be levied on secondhand goods. I felt fairly sure that secondhand goods bought and sold within the UK were exempt from VAT. It would appear that this is not the case for imports.

I am glad that I spotted this thread because I was just about to (hopefully) place the winning bid on a rather nice raincoat from the USA. At £20 ish plus about the same in postage it would have been a good buy, if however, import duty and VAT were added at the ridiculous levels the OP and other posters mentioned, then perhaps not so much of a bargain.

There's VAT on used goods too.

redmike123

I am not registered for VAT as I am not a VAT registered trader.

If I sell you a second hand item I therefore do not have charge you VAT.

However, If I buy from a VAT registered trader, they have to charge me VAT.

If I buy from non VAT registered vendor in the in the UK I do not have to pay VAT- Why do I therefore have to pay it if the vendor is in the USA ?

The logic escapes me

maninthestreet

"From 19 July 2007, excise duty is due on all excise goods (including tobacco and alcohol products) received via post from abroad, including occasional gifts and goods ordered online. This applies to goods sent from EU and non-EU countries."

Excise duties on goods sent from the EU? I thought there was supposed to be free movement of goods throughout the EU?

deanos

You only pay no duty on gifts under £36

jazzy

Many worldwide ebay items now have a low purchase price with a very high shipping charge, so what happens under these type of circumstances?

BFG_2

Typically the 'value' includes the P&P cost...so you still get hammered.

JohalaReewi

jazzy wrote: »

Many worldwide ebay items now have a low purchase price with a very high shipping charge, so what happens under these type of circumstances?

First off, the 'value' for customs includes shipping and insurance and if they feel that the goods are underdeclared, will use a more appropriate value. Then they add on any excise duty (if applicable) and customs duty. Then to top it off, they add VAT. As a bonus, your postal service slaps on a handling fee (plus VAT).