A question on Import duty and VAT

[woody]

Hi guy's,

Can anyone help explain this to me - I'm led to believe that if I order/purchase something from outside the EU (whether new or pre-owned) that I am liable for the duty and VAT.

How is the 'duty' worked out (what sort of % etc)?

I assume that the VAT is the standard 17.5%?

Why would I pay VAT on something that is not new ?

Oh yeah - another one - is Switzerland in the EU??

Just want to be sure I'm doing the right thing before I end up with a fecking huge bill from HM customs!!!

Cheers

Chris

[sb-1]

No it is not in the EU...ask Eric MC re VAT.

Steve

[Eric Mc]

You pay VAT on imported goods becuase that's the law - no other reason. VAT is charged at the standard 17.5% rate. VAT is charged on second hand goods in the UK too.

Switzerland is not in the EU.

[blindswelledrat]

I believe the rate of duty actually varies depending on the product i.e. not neccesarily 17.5%.
The reason for this, according to a person I spoke to, is that they charge you VAT on what they believe the value of that good to be. They have almost every product listed and their interpretation of it's retail value.
For example- say you got a particularly good deal on something and paid half it's true value- you would still be liable for VAT on the normal value thus it would actually be 35%.
Unless, of course, anything's changed in the last 18 months.

[Antwerpman]

but I think you pay VAT on the total of the item value PLUS the import duty and not just on the item value
Tax on tax....mmmm

[Eric Mc]

VAT is ALWAYS 17.5% - DUTY varies depending on the rate applicable to the product.

[Plotloss]

Eric Mc said:

VAT is ALWAYS 17.5%

Unless its zero or on fuel, eh Eric?

[boiler]

If you are exporting goods from switzerland you should be able to claim the VAT back (which unfortunately is only 6.5% in Switzerland) before you have to pay the EU VAT rate.

Exports into Switzerland, particularly from France work much better - claim French VAT back (@22.6%) and then pay 6.5% Swiss VAT. Shame I don't live in Switerland any more.

[anonymous-user]

Eric Mc said:

VAT is charged on second hand goods in the UK too.

Only on the profit margin. (Providing the dealer is operating under special scheme and he / she would be crazy not to).

[bigandclever]

Plotloss said:

Eric Mc said: VAT is ALWAYS 17.5% Unless its zero or on fuel, eh Eric?

Or 5% on children's car seats and "women's things"

[Eric Mc]

I know, I know. The question is specifically about VAT charged at point of entry into the UK. I wasn't talking about VAT in general.

I am well aware of the second hand margin schemes (and retail schemes and flat rate schemes and tour operator margin schemes and special rates for politically sensitive items etc etc etc) - none of which applies in this case.

[angusfaldo]

Import charges are calculated as follows:

price paid for item = customs value
Customs value X applicable duty rate = duty charged
Customs value plus duty charged X VAT rate = VAT charged

But the country you're sourcing from is part of the European Free Trade Association (EFTA) agreement so in theory there may be no duty to pay. Also, depending on the item, The EU signed up to the ITA (information technology agreement) quite a few years ago which reduced customs duties to zero on many IT products and components. Even if you're not covered by these customs duties in the EU rarely exceed 3 or 4 % unless you're talking about textile or food products.

[anonymous-user]

Eric Mc said:

I know, I know. The question is specifically about VAT charged at point of entry into the UK. I wasn't talking about VAT in general. I am well aware of the second hand margin schemes (and retail schemes and flat rate schemes and tour operator margin schemes and special rates for politically sensitive items etc etc etc) - none of which applies in this case.

What about if the items in this case are antiquities of a politically sensitive nature that were originally exported from the EU with all taxes paid and are being re-imported having been purchased on behalf of a charity for retired tour operators?






(I believe in making my accountant earn his money. )

[Mr Whippy]

If it's small enough to fit in your suitcase, just put it in their and don't look dodgy as you pass through customs.

Remember, you TOOK it out with you, you didn't buy it there

Dave

[Eric Mc]

Unrepentant - I'll only answer that question if you agree to pay me.

[anonymous-user]

Eric Mc said:

Unrepentant - I'll only answer that question if you agree to pay me.

Typical accountant.

Robbing bastards the lot of them.

[Eric Mc]

Au contraire - I'm far too cheap.

[mikef]

You can look up import duties here:

http://europa.eu.int/comm/taxation_customs/dds/cgi-b

It may take a while before you find the applicable TARIC code

Duty is payable on the goods and shipping costs

VAT is payable on the goods and shipping costs and on the duty

[vixpy1]

Eric Mc said:

Au contraire - I'm far too cheap.

Yes, me too..





Well, thats what it says on the Ladies Toilet wall..

[littlegreenfairy]

I was going to order some undies from America, when I was asked by the company to sort out the duty to be paid. So I rang up Customs and Exise (couldn't understand the website) for clarification. Apparently woven cotton and knitted cotton are different tax rates but because they had a lace trim (silk not cotton) it had to have a different tax code for the proportion that wasn't cotton...etc etc etc...

Gave up in the end and did it in the UK