£135 import threshold – foreign VAT and “intrinsic value”

PresidentEvilX

Hey all, have a bit of a weird one, as its the first time ive had an item priced just over the threshold for the seller (Cobi)

I’m trying to work out how the UK £135 low-value import threshold applies to a specific purchase from Poland.

I’ve bought from COBI in Poland several times before without any issues, but this is the first purchase I’m considering that appears to go over the £135 threshold.

It’s a COBI construction-block toy, made in Poland, costing €161.91 (about £138). COBI has confirmed that its prices include 23% Polish VAT.

If 23% VAT is included in the €161.91 price, the VAT-exclusive value would be €131.63 (about £112).

The parcel would have a CN23 customs declaration on the outside, potentially showing the full €161.91, with the seller’s paperwork inside that breaks down the VAT cost seperately from item value.

My understanding is that “intrinsic value” excludes identifiable taxes, but I’m confused because HMRC also says “customs value” can include local sales taxes.

So which figure determines whether this purchase is below or above the £135 threshold: approximately £112 excluding Polish VAT, or £138 including it?

If the intrinsic value is approximately £112, would I avoid UK import VAT, customs duty and courier handling charges?

I’ve asked HMRC but haven’t been able to get a clear answer, so I’d really appreciate someone familiar with UK customs/import VAT explaining how this would work in practice. Obviously I would understand if needing to pay something, but I just want to learn better hiw to calculate and prepare.

David.

martindow

It should be declared by the Polish company at the lower figure, ie without any Polish VAT, as it is an export out of the EU. You are going to be charged UK VAT, but I think the exporter should be charging this as part of exporting it as the value is below £135 so that it is paid by you in advance.

Over £135 in value, VAT is assessed on arrival plus possibly duty paid as that starts above that figure. If it is sent with UK VAT unpaid it should also be charged on arrival probably plus a fee. The carrier sending it will undoubtedly add a charge to cover dealing with paperwork and customs clearance.

These complications of importing and exporting is all part of the Brexit dividend that we all now enjoy! Some parcels may slip through without charges being imposed, but don't bank on it.