Import Duty Question
Discussion
Because I'm being thick and slow today I read about similar goods on the HMRC website and then obviously went off on a tangent.
Realise it will be paid on the price of the goods - and from what I remember it would be above £18. But would I pay VAT on the whole amount, + tax on the amount above £18 and then a handling charge?
Realise it will be paid on the price of the goods - and from what I remember it would be above £18. But would I pay VAT on the whole amount, + tax on the amount above £18 and then a handling charge?
Cost of goods = $55, say £40.
Cost of shipping = $20, say £15.
Total cost of goods = £55.
Duty = 5% (check! could be anywhere between 2-7% usually)
Vat = 15%
(£55 +5%)+15% = £66.41
That's right, you pay vat on duty [i]and[i] both on shipping! and depending who delivers you may also have a cheeky admin fee too.
Cost of shipping = $20, say £15.
Total cost of goods = £55.
Duty = 5% (check! could be anywhere between 2-7% usually)
Vat = 15%
(£55 +5%)+15% = £66.41
That's right, you pay vat on duty [i]and[i] both on shipping! and depending who delivers you may also have a cheeky admin fee too.
There are indeed lots of "experts" on here when it comes to importing stuff....
I'm not sure what the rate of duty is on your items, you would need to find that out through your local HMRC contact centre, but here's how it's worked out if say for example, the import duty was 5%
Item = £40
Shipping = £30(guess)
Import duty = 5%(guess)
VAT = 15%
£40 + £30 = £70.
5% import duty of £70 = £3.50
= £73.50
15% VAT of £73.50 = £11.03
= £84.53
If the item is delivered by Parcelforce, DHL etc, they are likely to hit you with their own "clearance fee" of around £8 too.
The importation of smaller goods (I've no idea how big your cookie cutter is) seems a bit hit and miss and varies according to the carrier. For instance, I find that if I buy anything from the U.S. that if the sender uses the USPS to send it, there seems to be less chance of me getting chraged import fees for some strange reason.
Link to more info
I'm not sure what the rate of duty is on your items, you would need to find that out through your local HMRC contact centre, but here's how it's worked out if say for example, the import duty was 5%
Item = £40
Shipping = £30(guess)
Import duty = 5%(guess)
VAT = 15%
£40 + £30 = £70.
5% import duty of £70 = £3.50
= £73.50
15% VAT of £73.50 = £11.03
= £84.53
If the item is delivered by Parcelforce, DHL etc, they are likely to hit you with their own "clearance fee" of around £8 too.
The importation of smaller goods (I've no idea how big your cookie cutter is) seems a bit hit and miss and varies according to the carrier. For instance, I find that if I buy anything from the U.S. that if the sender uses the USPS to send it, there seems to be less chance of me getting chraged import fees for some strange reason.
Link to more info
AMCDan said:
Cost of goods = $55, say £40.
Cost of shipping = $20, say £15.
Total cost of goods = £55.
Duty = 5% (check! could be anywhere between 2-7% usually)
Vat = 15%
(£55 +5%)+15% = £66.41
That's right, you pay vat on duty [i]and[i] both on shipping! and depending who delivers you may also have a cheeky admin fee too.
I'm liking your work there Dan... Cost of shipping = $20, say £15.
Total cost of goods = £55.
Duty = 5% (check! could be anywhere between 2-7% usually)
Vat = 15%
(£55 +5%)+15% = £66.41
That's right, you pay vat on duty [i]and[i] both on shipping! and depending who delivers you may also have a cheeky admin fee too.
Dover Nige said:
I'm liking your work there Dan...
yeah but yours was better formatted and easier on the eye![internet expert] yeah, but get them to mark it as a gift and you don't pay a penny!
[/internet expert]
littlegreenfairy said:
They get you every which way 
Its $45.90 + $56.20 shipping.
I can imagine this package being quite big.
However, it is still cheaper than the UK.
$1.42=£1Its $45.90 + $56.20 shipping.
I can imagine this package being quite big.
However, it is still cheaper than the UK.
£71.90 +5% +15% = £86.82
But then you can have admin fees and/or charges from your bank for a foreign transaction. Easiest way to do it is say that the dollar price = the price in pounds, and anything extra is a bonus.
Seriously though, £100 on cookie cutters?!
Edited by AMCDan on Tuesday 3rd February 10:00
AMCDan said:
Cost of goods = $55, say £40.
Cost of shipping = $20, say £15.
Total cost of goods = £55.
Duty = 5% (check! could be anywhere between 2-7% usually)
Vat = 15%
(£55 +5%)+15% = £66.41
That's right, you pay vat on duty [i]and[i] both on shipping! and depending who delivers you may also have a cheeky admin fee too.
Don't forget that there will be a "handling" charge added by the courier.....Cost of shipping = $20, say £15.
Total cost of goods = £55.
Duty = 5% (check! could be anywhere between 2-7% usually)
Vat = 15%
(£55 +5%)+15% = £66.41
That's right, you pay vat on duty [i]and[i] both on shipping! and depending who delivers you may also have a cheeky admin fee too.
Last year I bought a CD Boxed Set from the states - the handling fee added on by parcel farce was as much as the VAT+Duty....
If you can them sent with a low (less than £36 IIRC) or nil declared value by normal airmail post there shouldn't be any charges, although it is sometimes very difficult to get American companies to understand this, probably because they are not used to such a petty minded punitive regime and/or because of insurance reasons (can't claim for £100 worth of lost/damaged goods if only listed at £20 value).
Maybe a US based PHer could help?
Maybe a US based PHer could help?
AMCDan said:
Dover Nige said:
I'm liking your work there Dan...
yeah but yours was better formatted and easier on the eye![internet expert] yeah, but get them to mark it as a gift and you don't pay a penny!
[/internet expert]
littlegreenfairy said:
They get you every which way
Its $45.90 + $56.20 shipping.
I can imagine this package being quite big.
However, it is still cheaper than the UK.
$1.42=£1Its $45.90 + $56.20 shipping.
I can imagine this package being quite big.
However, it is still cheaper than the UK.
£71.90 +5% +15% = £86.82
But then you can have admin fees and/or charges from your bank for a foreign transaction. Easiest way to do it is say that the dollar price = the price in pounds, and anything extra is a bonus.
Seriously though, £100 on cookie cutters?!
Edited by AMCDan on Tuesday 3rd February 10:00
Suppose I'll just have to bite the bullet and do it.
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