Buying used equipment from US (VAT and Import Duty)

[Jcorstorphine]

I am looking at buying a refurbished prop from the US which is about ½ the price I will pay here. HOWEVER, I assume I will pay import duty and VAT

Question 1, How is this collected.

Question 2 The seller has quoted shipping to UK via the United States Postal Service at $72.00 for a package which I think will weigh about 4 to 6 kg, is this reasonable.

 

[Bobobolinsky]

You will get a little collection note from Parcel force, or who ever is your carrier, stating that they have a parcel for your collection, at their depot and
£ x to pay.

 

[DownWest]

I have bought a few things from the states and have only been charged once, on a set of plans. Everyhing else just arrived.

Other posters have vilified DHL and UPS. US postal seems the best bet.

 

[emandvee44]

Buying from US

I had a successful bid on Ebay for an item, which was shipped from California, and I received a bill from Parcelforce for about £59, thus increasing the price of my purchase by about 50%. I had not even considered that vat would be charged on a second hand item!

Michael.

 

[philip_stevens]

Just had a parcel from the USA, and not only VAT on the value of the item, but also on the cost of the shipping. This at 20% VAT on the total value - item plus shipping.

You may get away with it - I did a couple of times, but it hurts when you get caught out.

 

[maxi77]

I am looking at buying a refurbished prop from the US which is about ½ the price I will pay here. HOWEVER, I assume I will pay import duty and VAT

Question 1, How is this collected.

Question 2 The seller has quoted shipping to UK via the United States Postal Service at $72.00 for a package which I think will weigh about 4 to 6 kg, is this reasonable.

Any tax and duty is paid by the carrier and they will ask you to pay before handing the goods over to you.

$72 seems pretty high but for a private seller they may only be willing to use the local post office. You may have to do a little research yourself to get a better deal.

 

[Boo2]

Just had a parcel from the USA, and not only VAT on the value of the item, but also on the cost of the shipping. This at 20% VAT on the total value - item plus shipping.

And don't forget the £10 (+ VAT ) that Parcelfarce will charge as an administration fee for charging you VAT and duty

Boo2

 

[philip_stevens]

Yes, forgot to mention that!

 

[ffiill]

Yes parcel force and those charges-my wife received a parcel of new old wool my brother in law had come across in Canada-he put fair value of £20 on it and we were hammered by Parcelforce plus tax to tune of £15!-particularly as Parcelforce up here in Highlands where it surcharges parcel delivery lets our Royal Mail postie do the delivering!
Having said this I have had numerous bits and pieces from US and never been charged a penny-Hurth/ZF gearbox bits are well worth it. The only time I paid duty was for a starting coil for an old Merc outboard and I still did well out of the deal.

 

[Jcorstorphine]

Delivery cost by United States Postal Service is $72

Just had a parcel from the USA, and not only VAT on the value of the item, but also on the cost of the shipping. This at 20% VAT on the total value - item plus shipping.

Delivery cost by United States Postal Service is $72

I do not understand why VAT can be charged on a delivery service where the main cost by United States Postal Service is not in this country .i.e. transport within the US and transatlantic flight.

If I pay the seller $72 to get the item here into the UK, it is presumably picked up by UK Parcel Force to make the final delivery. I would have thought that the only VAT element would be on the UK delivery but then again the entire “raison d'etre” behind the VAT system is to screw every last penny out of us.

I am also unclear why I should have to pay VAT on a second hand item.

 

[Koeketiene]

Bought quite a few things in the States.

1. When buying new items from a business seller, I have had VAT, etc... levied by ParcelForce (or whoever) as described above.
2. When buying used items from private sellers (eBay mostly) I've never had to pay anything.

 

[2Tizwoz]

Yes parcel force and those charges-my wife received a parcel of new old wool my brother in law had come across in Canada-he put fair value of £20 on it and we were hammered by Parcelforce plus tax to tune of £15!-particularly as Parcelforce up here in Highlands where it surcharges parcel delivery lets our Royal Mail postie do the delivering!

Perhaps it would have been better to send it in two parcels?

A guide for international post users (click here) by HMRC.

'2.3 What are the limits for customs duty and import VAT?
■Commercial consignments of £15 or less are free from customs duty and import VAT. For example, goods purchased over the internet with an intrinsic value not exceeding £15, will not be charged any duty or VAT but this does not include alcohol, tobacco products, perfume or toilet waters. See paragraph 2.6, 2.7 and section 3.
■If you are sent a gift with a value of £40 or less, and which complies with the rules shown in paragraph 2.5, it will be free from customs duty and import VAT, but this does not include alcohol, tobacco, perfumes and toilet waters.
■Customs duty becomes payable if the value of the goods is over £135 but duty is waived if the amount of duty calculated is less than £9.
In summary:

Goods Value*

Customs Charges applicable


£0.01 to £15

■No customs duty
■No Import VAT

£15.01 to £135

■No customs duty
■Import VAT due

£135.01 and greater

■Customs duty due, but waived if the amount calculated due is less than £9
■Import VAT due


*excludes the following goods: alcohol; tobacco products; perfumes and toilet waters. These items do not benefit from the relief of customs duty or VAT at import, and alcohol and tobacco products will also be liable to excise duty.

There are a number of other circumstances where relief from some or all customs charges may be available. If you think your goods may be eligible for a relief you should contact the Excise and Customs Helpline on Tel 0845 010 9000 for further information.

2.4 Gifts
Goods sent as a gift that are over £40 in value are liable to import VAT. Customs duty also becomes payable if the value of the goods is over £135 but is waived if the amount of duty calculated is less than £9.

To qualify as a gift:

■the customs declaration must be completed correctly
■the gift must be sent from a private person outside the EU to a private person(s) in this country
■there is no commercial or trade element and the gift has not been paid for either directly or indirectly
■the gift is of an occasional nature only, for example, for a birthday or anniversary