Pre Pay VAT on purchase from USA?

roadweary

I hope this is the right forum section, I couldn't find a better fit.

I want to buy a type of in-ear monitor from the USA.  They are using the HS code 8518.30.2000 and according to online calculators there is no duty to pay on import, just the UK VAT.

However, past experience of buying guitars some time ago from the USA is that you end up with delays.  The parcel gets held up at customs, then it goes to some kind of 3rd party courier service and they charge you both the custom's (VAT) fee and their own handling fee on top.

Is there some way that I can arrange for the VAT to be pre-paid along with the correct paperwork so that the item comes direct to my door without the extra hoops / delays described above?

This will be purchased direct from the company, no eBay or other intermediary.

Thanks,
R

martindow

I don't think so and even with eBay prepaying VAT only applies up to a certain figure (£135 I think).  Anything over that has to be cleared here by the carrier.  Probably you are talking a fairly high value for your guitar.

It does appear that the company you are dealing with knows what they are doing if they already know the commodity code.  Delays at customs usually are due to incorrect or incomplete declarations.  You won't be able to avoid a clearance fee of £15 or so and VAT will be charged or the item value plus shipping cost.

Some carriers invoice after delivery (Fedex for example) and others want payment in advance.  If the customs declaration is satisfactory, this is done as soon as the shipment is on its way so there should be no delay once it is in the UK.

Hoenir

roadweary said:

However, past experience of buying guitars some time ago from the USA is that you end up with delays.  The parcel gets held up at customs, then it goes to some kind of 3rd party courier service and they charge you both the custom's (VAT) fee and their own handling fee on top.

The "3rd party courier services" act as collection agents for the HMRC and perform the requsite work. Hence the handling fee. 

penners324

You get the company your buying from to send the items DDP. 

That is the only way. 

Rantband

penners324 said:

You get the company your buying from to send the items DDP. 

That is the only way. 

It would help if you said what DDP is rather than use initials that could mean anything.

Zinger549

Rantband said:

penners324 said:

You get the company your buying from to send the items DDP. 

That is the only way. 

It would help if you said what DDP is rather than use initials that could mean anything.

Delivered Duty Paid

Rantband

Zinger549 said:

Rantband said:

penners324 said:

You get the company your buying from to send the items DDP. 

That is the only way. 

It would help if you said what DDP is rather than use initials that could mean anything.

Delivered Duty Paid

Thanks for your helpful post.

DullGreyGuy

roadweary said:

I hope this is the right forum section, I couldn't find a better fit.

I want to buy a type of in-ear monitor from the USA.  They are using the HS code 8518.30.2000 and according to online calculators there is no duty to pay on import, just the UK VAT.

However, past experience of buying guitars some time ago from the USA is that you end up with delays.  The parcel gets held up at customs, then it goes to some kind of 3rd party courier service and they charge you both the custom's (VAT) fee and their own handling fee on top.

Is there some way that I can arrange for the VAT to be pre-paid along with the correct paperwork so that the item comes direct to my door without the extra hoops / delays described above?

This will be purchased direct from the company, no eBay or other intermediary.

Thanks,
R

How much is the item?

Are you buying it from eBay or elsewhere?

The law as it stands at the moment is that if the total landed cost is under £135 then VAT must be charged at point of sale. The default for anything over £135 is its sold without taxes being applied and they are to be paid by the importer, for those not importing vast quantities frequently its easiest to allow a courier to deal with customs, they pay HMRC on your behalf and then recover those monies from you plus a fee for having done the clearing for you and extending you credit. 

Some couriers offer the option of Delivered Duty Paid where the sender pays a higher amount which covers all the taxes and the work the courier has to do clearing customs. In principle it can be a bit cheaper than just paying it on delivery as the courier fee is lower given they're paid up front but it's not nil. The other problem is that it exposes someone in the supply chain to FX risk and so that may be priced in as well. 

Havent looked into the topic for a while but last time I did it wasnt the case that Jo Blogs who sends a few parcels a month overseas could use DDP, you needed significant volume for it to be worth while for the courier, and some couriers are very limited as to where they offer DDP - Royal Mail for example only support 10 European countries.

You can certainly ask the seller if this is possible but it will depend on their courier network plus if they dont do this as standard then your T&Cs are likely to say you are still liable for the importation taxes