Kickstarter Campaigns, Customs And VAT?

bytor1971

Hello everyone, it's been a while since I last posted here! 😁

I've just backed a Kickstarter campaign to the tune of $2390. 😲

Now as far as I understand things backing a Kickstarter isn't a purchase, you're just funding development of a product and are (hopefully lol) getting the product delivered in exchange for that funding.

The company that are developing this product (a motion simulator for video games) are planning on helping backers out by placing a lower value on the Customs paperwork so that we don't get shafted by VAT payments, and as far as I understand we don't need to pay VAT on goods worth £135 or under.

So if they fill in the Customs paperwork with a value of £135 will the Customs people impound my motion simulator because they think that my goods are worth more than the value stated on the paperwork?

Many thanks in advance for any help! 😎😁😎

Keep_pedalling

It’s not a purchase but when (or should that be if) you get the device then any tax due on it should be based on the actual value of the device, which maybe more or less than your investment in the company.

bytor1971

Keep_pedalling said:

It’s not a purchase but when (or should that be if) you get the device then any tax due on it should be based on the actual value of the device, which maybe more or less than your investment in the company.

Okay, thanks for the reply and help. 😁 But what happens if the company put a value that the Customs people don't agree with? Will it get seized or something?

Is there some sort of official guidelines that the company can follow? Or is it all down to opinion? Or can they base the value on the cost of materials, perhaps that would be better?

unholyangel

bytor1971 said:

Keep_pedalling said:

It’s not a purchase but when (or should that be if) you get the device then any tax due on it should be based on the actual value of the device, which maybe more or less than your investment in the company.

Okay, thanks for the reply and help. 😁 But what happens if the company put a value that the Customs people don't agree with? Will it get seized or something?

Is there some sort of official guidelines that the company can follow? Or is it all down to opinion? Or can they base the value on the cost of materials, perhaps that would be better?

The second they said they'd deliberately under declare (aka commit fraud), I'd have ran for the hills. If they don't mind committing fraud to a legal authority, they'll have no qualms about telling a few porkies to their investors. 

Jeremy535897

See https://www.gov.uk/government/publications/notice-252-valuation-of-imported-goods-for-customs-purposes-vat-and-trade-statistics/notice-252-valuation-of-imported-goods-for-customs-purposes-vat-and-trade-statistics