VAT on imported goods (4 Viewers)

[Diabalo]

Does anyone know how you pay the VAT on imported items? I intend to import a spare part that is under the £135 threshold for customs duty but I will need to pay the VAT. Do customs contact you and release the item once the VAT is paid or does the courier which I believe is UPS sort it out?

 

[St3v3]

Courier for the odd few bits I've had.

 

[Paul F]

Yes, it is always the courier but this can often take some time as they may only have your address to work with.

I tracked a recent order as I thought it had gone missing, and Parcelforce wrote to me about the duty, but this was 10 days after the parcel had entered the UK. The retailer was unable to intervene as it is a customs matter that the courier is responsible for.

After I got the letter, I paid the duty and the parcel arrived the next day.

 

[Orion]

Does anyone know how you pay the VAT on imported items? I intend to import a spare part that is under the £135 threshold for customs duty but I will need to pay the VAT. Do customs contact you and release the item once the VAT is paid or does the courier which I believe is UPS sort it out?

If it’s under the threshold for customs duty you may not be hit for the vat as well. It seems totally hit and miss to me as the last items that I purchased from the EU - footplate covers for E&P levellers, total value £114.10 - attracted no request for payment of VAT.

Other items of similar cost have in the past and the request for payment came from the carrier and was settled online before delivery was made.

 

[ED O'DARAC]

If it’s under the threshold for customs duty you may not be hit for the vat as well. It seems totally hit and miss to me as the last items that I purchased from the EU - footplate covers for E&P levellers, total value £114.10 - attracted no request for payment of VAT.

Other items of similar cost have in the past and the request for payment came from the carrier and was settled online before delivery was made.

I think the threshold is £149

^{_{Subscribers  do not see these advertisements}}

 

[DBK]

I recently heard about someone who imported a radio from Switzerland worth about £1300. It was airfreighted to Heathrow where Customs held it. He was subsequently contacted and told to appoint a customs agent to clear the parcel which he did - but it wasn't a cheap activity. Not sure what duties were paid but I guess VAT was part of it.

 

[Paul F]

I think the threshold is £149

I think it may be £135 for import duty and £39 for VAT but as has been mentioned, the rules can be applied in quite a random way. I have had the charges applied (or not) incorrectly in both directions.

The courier is also entitled to impose a tax collection charge - Parcelforce was a flat £12.00 from memory.

 

[Orion]

If it’s under the threshold for customs duty you may not be hit for the vat as well. It seems totally hit and miss to me as the last items that I purchased from the EU - footplate covers for E&P levellers, total value £114.10 - attracted no request for payment of VAT.

Forgot to mention that the seller, Mees Outdoors, automatically deducted vat at their end once a U.K. address was entered in the online buying process! So win win.

The courier is also entitled to impose a tax collection charge - Parcelforce was a flat £12.00 from memory.

And that, along with any import duty and vat, plus the difficulty in returning faulty goods, can make buying overseas not as attractive as it may at first appear.

 

[Lenny HB]

Under £130 the supplier has to pay the VAT to do this they have to register with HMRC which costs £1000 that's why so many companies won't supply the UK.

Over £130 it's down to you to pay the VAT items normally get held at customs by the shiping agent until VAT is paid and you often get clobbered with an agents charges of £25 or more.

Some companies do supply items over £130 tax paid.

 

[CamperManLez]

Does anyone know how you pay the VAT on imported items? I intend to import a spare part that is under the £135 threshold for customs duty but I will need to pay the VAT. Do customs contact you and release the item once the VAT is paid or does the courier which I believe is UPS sort it out?

The courier service will usually ask for payment before they move the item, done this many times with imports

^{_{Subscribers  do not see these advertisements}}

 

[Paul F]

All unfortunate consequences of Brexit I am afraid.

It is a shame the real life practicalities and impact of the vote were not understood by many before they put that cross in the box.

 

[St3v3]

All unfortunate consequences of Brexit I am afraid.

It is a shame the real life practicalities and impact of the vote were not understood by many before they put that cross in the box.

Change the record

 

[Paul F]

Change the record

hmm…first time I have actually ever mentioned the B word on this forum. I wonder if I touched a nerve.

 

[meanders]

All unfortunate consequences of Brexit I am afraid.

It is a shame the real life practicalities and impact of the vote were not understood by many before they put that cross in the box.

I think your second paragraph is probably true for anyone that has tried to buy goods from Europe, or indeed felt that the freedom of movement restriction would only ever work in one direction. Why they thought that I don't know, but clearly a good few Funsters did by the number of complaints about the 90/180 days rule. However the decision was made, no party wants to reopen that Pandora's Box and we all have to live with it whichever way we voted. Any thoughts that many of the promised benefits seem to have melted away and that the downsides were not seen, or as I heard the other day, deliberately hidden from voters is just a waste of energy. Decision was made democratically, and we live with the consequences.

I think comments like change the record is because we all know there is no point in raking over the coals. The fire is out.

 

[starquake]

To be hoenst I think the current shipping actually has made life a TON easier for delivereis from China as an exmaple. Pre the B word, it was a proper pain with you needing to have a shipping agent able to pay HMRC for you. Now if it's below £130 which most of my Chinese orders are, you get a VAT invoice from China. Job done. If it's over 130 you can use your vat registration and do the HMRC vat on arrival regiime if it's of suffient value.

I do agree it's made shipping to EU a total ballache though. But the positives of faster delveries from China shouldn't be totally negative, it's freed me from having to buy things from UK Electronics parts emportiums because pre B word, shipping and clearance took > 3-4 weeks on average. Now things sail in, usually in 4 days, and usually for LESS than the shipping cost from a UK warehouse (for parts and shipping). It's removed my parts orders from being a once a month thing to being a once a week thing.

Sorry to say (yes) I order from China regularly. Examples on things like LED strip, yes I can buy from amazon but it's DOUBLE the cost... for the same brand .. with only advantage being it's already in uk and has 1 day shipping instead of 4.

^{_{Subscribers  do not see these advertisements}}

 

[fred_jb]

I believe that for imports from the EU, so long as the total cost including shipping is below £135, then you pay VAT to the seller at their country's rate and UK customs do not charge UK VAT.

Above that the supplier is supposed to charge a price excluding VAT and you get charged UK VAT and where applicable import duty by UK customs. As has been said some stuff gets through tax free but where it doesn't the courier normally collects the money due, adding on a fee for doing this

In practice I think EU suppliers are not geared up for the over £135 case, so you are potentially going to pay two lots of VAT which is why I don't buy much stuff from the EU these days. Used to be able to save a lot buying motorcycle gear and accessories like panniers from the EU.

 

[Lenny HB]

I believe that for imports from the EU, so long as the total cost including shipping is below £135, then you pay VAT to the seller at their country's rate and UK customs do not charge UK VAT.

That's not correct see my post #9

 

[fred_jb]

That's not correct see my post #9

It seems that post 2021 EU retailers have to collect VAT and pay to the UK, which is now evident , for example when buying foreign goods via eBay, so contrary to what I said, which I believe applied before 2021 they can no longer just charge VAT in their own country on sub £135 sales. Obviously this makes it more bureaucratic, so probably explains why less companies will now ship to the UK. The wording I have found on this is as follows:

Goods ordered from a retailer abroad

The rules for goods ordered from a retailer depend on whether or not the goods are:

• worth £135 or less, and
• not alcohol, tobacco or perfume.

If they are, then no customs or excise duty will be payable. VAT will be payable, but it is the responsibility of the foreign retailer to register for VAT with HMRC and charge its UK customers VAT as part of the purchase price (just as if a UK retailer were selling to them). The UK purchaser should not have to do anything when the goods arrive in the UK.

If they are worth more than £135 or contain alcohol, tobacco or perfume, the UK consumer has more to do. The foreign retailer is not required to charge VAT or excise duty (whether at the UK rate or its own) on the sale. Instead, the UK consumer must pay HMRC the tax owed. Usually, the postal service or the courier will pay HMRC on the individual’s behalf, then require the individual to repay them before the goods are released. They may also charge an administration fee for this service: for example, Royal Mail charge £8 per parcel, while some private courier companies charge substantially more.

 

[Lenny HB]

It seems that post 2021 EU retailers have to collect VAT and pay to the UK, which is now evident , for example when buying foreign goods via eBay, so contrary to what I said, which I believe applied before 2021 they can no longer just charge VAT in their own country on sub £135 sales. Obviously this makes it more bureaucratic, so probably explains why less companies will now ship to the UK. The wording I have found on this is as follows:

Goods ordered from a retailer abroad

The rules for goods ordered from a retailer depend on whether or not the goods are:

• worth £135 or less, and
• not alcohol, tobacco or perfume.

If they are, then no customs or excise duty will be payable. VAT will be payable, but it is the responsibility of the foreign retailer to register for VAT with HMRC and charge its UK customers VAT as part of the purchase price (just as if a UK retailer were selling to them). The UK purchaser should not have to do anything when the goods arrive in the UK.

If they are worth more than £135 or contain alcohol, tobacco or perfume, the UK consumer has more to do. The foreign retailer is not required to charge VAT or excise duty (whether at the UK rate or its own) on the sale. Instead, the UK consumer must pay HMRC the tax owed. Usually, the postal service or the courier will pay HMRC on the individual’s behalf, then require the individual to repay them before the goods are released. They may also charge an administration fee for this service: for example, Royal Mail charge £8 per parcel, while some private courier companies charge substantially more.

Main problem is the foreign suppliers have to pay a £1000 to register, not many are going to do that.