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Credit card protection on purchase

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Comments

  • koolkat66
    koolkat66 Posts: 66 Forumite
    Part of the Furniture 10 Posts
    koolkat66 said:
    El_Torro said:
    Buying from the EU does not incur import duties into the UK, assuming the goods are manufactured in the Czech Republic.

    Duties would only be applied if the products you are buying originated from outside of the EU and were then sold on to you in the UK. This applies even if duties were paid when initially importing the goods into the EU.
    Thanks, another good piece of information! In fact this company is not even including VAT in their quote. I did question it and they just said that there is no VAT on it, whereas another company based in EU which I used previosuly, did. I am not VAT registered so it helps.

    They are correct and wrong... as its an export sale for them they will legally charge you Czech VAT at 0% however when you import them into the UK as each package will be over £135 then you will have to pay UK VAT at 20%. In most cases the courier will clear the goods for you resulting in you repaying them the VAT, a fee for clearing the goods for you (normally a percentage of the taxes due with a minimum of £10-£15) and potentially duty. 

    The total sale of the good, which are for my business, will be about €3000. How can I find out how much I will end up paying in the end, I have been questioning the total because it was very competitive compared to the previous supplier, who quoted UK VAT, even if they are based in France?
  • DullGreyGuy
    DullGreyGuy Posts: 18,613 Forumite
    10,000 Posts Second Anniversary Name Dropper
    koolkat66 said:
    koolkat66 said:
    El_Torro said:
    Buying from the EU does not incur import duties into the UK, assuming the goods are manufactured in the Czech Republic.

    Duties would only be applied if the products you are buying originated from outside of the EU and were then sold on to you in the UK. This applies even if duties were paid when initially importing the goods into the EU.
    Thanks, another good piece of information! In fact this company is not even including VAT in their quote. I did question it and they just said that there is no VAT on it, whereas another company based in EU which I used previosuly, did. I am not VAT registered so it helps.

    They are correct and wrong... as its an export sale for them they will legally charge you Czech VAT at 0% however when you import them into the UK as each package will be over £135 then you will have to pay UK VAT at 20%. In most cases the courier will clear the goods for you resulting in you repaying them the VAT, a fee for clearing the goods for you (normally a percentage of the taxes due with a minimum of £10-£15) and potentially duty. 

    The total sale of the good, which are for my business, will be about €3000. How can I find out how much I will end up paying in the end, I have been questioning the total because it was very competitive compared to the previous supplier, who quoted UK VAT, even if they are based in France?
    Parcels under £135 have to be quoted including UK VAT, parcels over £135 its the merchants choice if they charge you a fully landed cost or charge you the net cost and you or the courier deal with clearance and paying the taxes. Most overseas retailers opt for the second one.

    There are various online calculators where you can enter the details, prices etc and they'll calculate the taxes for you but it is highly dependent on the correct commodity code being selected. What it won't tell you is how much the courier will charge for doing the clearing for you as that comes down to which courier etc. 

    Now we know it's a business transaction then S75 doesn't apply even if the goods were sold as a set but chargebacks do still apply. 
  • p00hsticks
    p00hsticks Posts: 14,468 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    koolkat66 said:
    koolkat66 said:
    El_Torro said:
    Buying from the EU does not incur import duties into the UK, assuming the goods are manufactured in the Czech Republic.

    Duties would only be applied if the products you are buying originated from outside of the EU and were then sold on to you in the UK. This applies even if duties were paid when initially importing the goods into the EU.
    I am not VAT registered so it helps.

    Are you suggesting that this is a business to business transaction ? 
    If so not all consumer legislation would apply ....

    I am a sole trader and I am buying for my business, is that what you mean?
    Yes, that's what I mean. 
    So as it is your business buying from another business, you don't get Section 75 protection - that is only for end customers - so the topic of whether the amount is for over £100 or not is irrelevant.

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