Buying from Canada

freccles

I'd like to buy something - a piece of jewellery - costing around £950 from Canada off eBay. Items from the US have all charges paid at point of sale inc duty etc. This does not appear to be the case with Canada - it just shows the postage charge. How can I find out what other charges I'll have to pay? TIA

martindow

You will have to pay 20% VAT on the total cost (value of the item plus the postage charge).  It is over the value where duty may be payable.  If you find the commodity code here it will tell you the charge, possibly a few per cent.

https://www.gov.uk/trade-tariff

There will also be a fee payable to the carrier who will undertake customs clearance here - typically around £15, but maybe more if they charge a percentage of the consignment value.

If you do decide to go ahead I would give the seller the appropriate commodity code and would also make sure that it will be adequately insured in transit when you have something of this value.  Are you sure that this seller is completely trustworthy?  Dealing with any issues after importing can be very difficult.

Edit:  Customs clearance should be straightforward provided that the sender fills out the declaration correctly.  Some declare below the true value to save you fees on import which is all well and good unless you need to claim on the insurance who will pay at most the declared value.  Strictly speaking the importer should inform HMRC and correct the value.

Hoenir

martindow said:

 Some declare below the true value to save you fees on import which is all well and good 

Unless C&E take a closer look at the contents of the package and/or request a copy of the invoice for the goods. 

Brie

Check with the seller as well if they are charging tax on the sale. 

In Canada there is no "VAT" included in sale prices.  If you were there and buying something there is generally Goods and Services Tax (GST) that is standard across the country  - I think it's 7%.  Then there's provincial sales tax (PST) which differs for each provence.  I believe that's currently 8% in Ontario.  All this means that if you bought something for $100 you actually pay $115.

But some tax can be reclaimed for goods leaving the country - I don't know how this will be handled and if it applies to both types of tax so your $950 might end up costing you $1092 and you'd have to apply to get some of the tax refunded.  So this may also effect what the import price is on which VAT is charged.  

Chances are that if this is an individual selling something as a one off then they might not charge any tax but someone who is running a business very likely will.  Hence the need to check.

freccles

Brie said:

Check with the seller as well if they are charging tax on the sale. 

In Canada there is no "VAT" included in sale prices.  If you were there and buying something there is generally Goods and Services Tax (GST) that is standard across the country  - I think it's 7%.  Then there's provincial sales tax (PST) which differs for each provence.  I believe that's currently 8% in Ontario.  All this means that if you bought something for $100 you actually pay $115.

But some tax can be reclaimed for goods leaving the country - I don't know how this will be handled and if it applies to both types of tax so your $950 might end up costing you $1092 and you'd have to apply to get some of the tax refunded.  So this may also effect what the import price is on which VAT is charged.  

Chances are that if this is an individual selling something as a one off then they might not charge any tax but someone who is running a business very likely will.  Hence the need to check.

It's an individual. What about import duties please?

martindow

freccles said:

It's an individual. What about import duties please?

As posted before ...  

You will have to pay 20% VAT on the total cost (value of the item plus the postage charge).  It is over the value where duty may be payable.  If you find the commodity code here it will tell you the charge, possibly a few per cent.

https://www.gov.uk/trade-tariff

soolin

martindow said:

freccles said:

It's an individual. What about import duties please?

As posted before ...  

You will have to pay 20% VAT on the total cost (value of the item plus the postage charge).  It is over the value where duty may be payable.  If you find the commodity code here it will tell you the charge, possibly a few per cent.

https://www.gov.uk/trade-tariff

Plus potentially the courier handling fee. So at least on top of other savings the handling fee will be payable once and not twice.