Import tax and VAT on ancient coin from US

waveydavey48

Hi, I'm interested in a coin worth about £250 for sale by a US coin dealer. If I understand the position properly, if I pay by my credit card (the seller accepts VISA) I enjoy section 75 protection so if it doesn't turn up (and he says insured delivery is not available) then my credit card company are jointly liable.

So I can work out the total cost can someone please advise what import duty, VAT and any other charges would be? I've never bought anything from the US and don't want to come a cropper.

Thanks 

Sandtree

There are various online calculators that enable you to input what the item is, where its coming from etc and it will give an estimate of the landed cost and you just need to add on the fee the courier charges for dealing with HMRC for you (normally circa £15)

You need to be very precise and match what the dealer is going to declare it as, duty can vary notably across small details (a stoneware, earthenware and porcelain plate all attract different rates of duty - on last check at least).

waveydavey48

Thank you, that's helpful.

Maybe I'm a bit slow but I wasn't aware that VAT at 20% would be added. 

Sandtree

waveydavey48 said:

Thank you, that's helpful.

Maybe I'm a bit slow but I wasn't aware that VAT at 20% would be added. 

It will depend on the exact specification of the item but obviously most things in the UK attract VAT at 20%, there are some exceptions or reduction like gold bullion for investment, food, financial services, works of art etc but again the calculators will look up the item. 

If you just want to look up codes to get the rate then look at Trade Tariff: look up commodity codes, duty and VAT rates - GOV.UK (www.gov.uk)

Remember Duty is paid on the full cost of getting it to the UK (ie item value, P&P & insurance) and VAT is based on full cost of getting it to the UK + the Duty

born_again

I would check with your CC co re S75 on something like that. They may view it as a investment & not have any cover.

Good news is it would be covered via chargeback.

waveydavey48

A further question if I may, I have seen an item under £1,000 from an EU seller but he doesn't accept credit cards. He does accept paypal but I have no real idea about paypal protection and despite my efforts to read up on it I am still confused. It would be a straight transaction between the seller and myself (I am a private individual). Is paypal protection comparable to S75?

Thanks.

Jenni_D

waveydavey48 said:

A further question if I may, I have seen an item under £1,000 from an EU seller but he doesn't accept credit cards. He does accept paypal but I have no real idea about paypal protection and despite my efforts to read up on it I am still confused. It would be a straight transaction between the seller and myself (I am a private individual). Is paypal protection comparable to S75?

Thanks.

No, it's not. S75 is enshrined in UK law; PayPal protection is subject to PayPal's T&Cs.

Sandtree

waveydavey48 said:

A further question if I may, I have seen an item under £1,000 from an EU seller but he doesn't accept credit cards. He does accept paypal but I have no real idea about paypal protection and despite my efforts to read up on it I am still confused. It would be a straight transaction between the seller and myself (I am a private individual). Is paypal protection comparable to S75?

Thanks.

Remember EU now attracts potential the same taxes as the US post Brexit... lower chance of duty but that depends on how its source of origin works for an antique. Were it a modern/new item then it's be duty, but not VAT free, if made in the EU but could attract the duty if made outside the EU and just retailed by a EU entity.

The advantage of the EU though is most their sales taxes are about 20% like VAT and they shouldnt charge you local tax so if the gross list price was circa £1k minus local tax plus VAT shouldnt be miles apart (exceptions always exist)

waveydavey48

 if made in the EU but could attract the duty if made outside the EU and just retailed by a EU entity.

It was made in the EU area but about 2,500 years ago!

Does that mean it's likely to be, say, the purchase price plus tax, less equivalent tax so it still ends up at about, say, £1,000?  

Also, I now understand that paypal guarantee is different to S75 (ie not statutory protection but contractual) but what's the general view of forum members about it's worth. Is it generally useful or not worth the paper it's written on. Would it reassure you about buying in these circumstances?

Thanks again. 

Sandtree

waveydavey48 said:
Does that mean it's likely to be, say, the purchase price plus tax, less equivalent tax so it still ends up at about, say, £1,000?  

Also, I now understand that paypal guarantee is different to S75 (ie not statutory protection but contractual) but what's the general view of forum members about it's worth. Is it generally useful or not worth the paper it's written on. Would it reassure you about buying in these circumstances?

Assuming they've listed it with local sales tax then its likely to be similar as sales tax is something the EU tried to create some parity on and we havent deviated from yet (other than sanitary products). However they may be listing it net in which case VAT may go on top. 

PayPal is better than nothing but a long way short of S75. One of key differences is the duration of protection, S75 has no limit in itself but instead comes from the underlying liability (so in England 6 years generally) whereas PayPal is 110 days (from memory). So initial concerns broadly covered by both but if you found at a later date it was a fake then PayPal may have expired.