Taking parts from UK-> EU, VAT question

[Kelpie]

I'm thinking of asking a friend to bring back a small specialist part from the UK to Portugal when he flies this way.
The supplier has quoted me an ex-VAT price 'for immediate export'.
Obviously saving 20% is a nice little bonus if I can get it.
But what does this entail? The supplier needs a flight number so am I landing my friend in a world of complication with declaring what he's carrying for IVA? And presumably I end up paying the 21% Portuguese IVA so don't actually make any savings?

And what *actually* happens, in practise?

 

[Koeketiene]

Recently I ordered some boaty bits in the UK - UK delivery address, for export to France (billing address).
All the UK supplier needed was a copy of my wife's Eurotunnel booking.

What happened when she arrived at Eurotunnel?
Nobody asked, she didn't tell anyone.

20% VAT discount obtained.

 

[Graham376]

As well as normal duty free cigs, booze etc. there's a €430 allowance for other goods and anyone entering as a tourist is highly unlikely to have bags searched.
Money and duty-free information for Portugal (worldtravelguide.net)

 

[Ningaloo]

As well as normal duty free cigs, booze etc. there's a €430 allowance for other goods and anyone entering as a tourist is highly unlikely to have bags searched.
Money and duty-free information for Portugal (worldtravelguide.net)

However this does not help with the OP's question about buying goods ex VAT!

 

[syvictoria]

However this does not help with the OP's question about buying goods ex VAT!

It surely does if said goods are to be taken out of the EU in person (as suggested in the OP) as opposed to via a courier?

Edited: Sorry, I misread the OP and thought that the goods were coming from Portugal to the UK, but I see now that it's the other way round.

 

[Ningaloo]

It surely does if said goods are to be taken out of the EU in person (as suggested in the OP) as opposed to via a courier?

Well I was thinking more that you don't want to pay the VAT.
For sure you won't get much interest in general goods that you take into EU, but you have already paid UK VAT on these.
The challenge is to get a supplier willing to sell you the goods VAT free AND not have the EU apply EU VAT/GST/TVA when you take them into the country. This is outside the scope of the general allowance.

 

[blxm]

As well as normal duty free cigs, booze etc. there's a €430 allowance for other goods and anyone entering as a tourist is highly unlikely to have bags searched.
Money and duty-free information for Portugal (worldtravelguide.net)

Is this €430 allowance an EU wide allowance? I'm taking a few bits an pieces to Greece later in the year and must admit I'm struggling to find clarity on the gov website.

Edit: Ignore this, just found the info I require! It is EU wide.

 

[syvictoria]

Well I was thinking more that you don't want to pay the VAT.
For sure you won't get much interest in general goods that you take into EU, but you have already paid UK VAT on these.
The challenge is to get a supplier willing to sell you the goods VAT free AND not have the EU apply EU VAT/GST/TVA when you take them into the country. This is outside the scope of the general allowance.

I had (seemingly incorrectly) assumed that a VAT receipt wouldn't be required if the total value of all goods was below the €430 allowance?

 

[Poignard]

I had (seemingly incorrectly) assumed that a VAT receipt wouldn't be required if the total value of all goods was below the €430 allowance?

You might need some bills to show what you paid for things and how long ago you bought them.

 

[Graham376]

You might need some bills to show what you paid for things and how long ago you bought them.

You may but, be a bit constructive. OCR and DTP are your friends

P.S. We arrived Faro airport today, lots of large golf bags on flight, no customs officers in sight.

 

[MikeCC]

If your supplier has agreed to send it to a UK address and is only asking for passenger details, the hard part is over for you. The UK VAT liability rests with the supplier.

Technically, they should be asking for a customs-stamped merchandise in baggage (MIB) form to be sent back to them to support the zero-rating. This would entail your friend having to go to customs desk at airport to get it cleared.

No idea what might happen at Portugal end though.

 

[jdc]

Quite apart from any moral considerations, I think you'd be wise just to pay the UK VAT and have your friend bring the part out in his or her luggage, obeying the spirit of the allowance. Sure, you'd be unlikely to be caught if cheating on VAT, but the downside if caught is potentially huge so expectation value of downside will almost certainly exceed 20% VAT on the one small part.

One possible downside if caught cheating on VAT could be that RGR, which at present is being applied rather understandingly to yachts returning to the UK having spent > 3 years abroad, gets refused for you and you'd be asked to pay full 20% on your boat on return.

A final consideration is that we don't want to get a reputation as people customs and excise can't trust, it would create greater hassle for all of us and might harden attitudes in regard to RGR. I understand the attraction of cocking a snoot at authority, but can you not find a more subtle way to do that?

 

[st599]

Quite apart from any moral considerations, I think you'd be wise just to pay the UK VAT and have your friend bring the part out in his or her luggage, obeying the spirit of the allowance. Sure, you'd be unlikely to be caught if cheating on VAT, but the downside if caught is potentially huge so expectation value of downside will almost certainly exceed 20% VAT on the one small part.

One possible downside if caught cheating on VAT could be that RGR, which at present is being applied rather understandingly to yachts returning to the UK having spent > 3 years abroad, gets refused for you and you'd be asked to pay full 20% on your boat on return.

A final consideration is that we don't want to get a reputation as people customs and excise can't trust, it would create greater hassle for all of us and might harden attitudes in regard to RGR. I understand the attraction of cocking a snoot at authority, but can you not find a more subtle way to do that?

Also, if a vessel is in the EU on Temporary Import, you're not allowed to do anything that increases the value.

 

[Graham376]

Also, if a vessel is in the EU on Temporary Import, you're not allowed to do anything that increases the value.

Where did you find that information, any link? On return to UK and claiming RGR, betterment could be a problem.

 

[st599]

RYA said so in their Brexit seminar.

 

[Clancy Moped]

Also, if a vessel is in the EU on Temporary Import, you're not allowed to do anything that increases the value.

A boat that increases in value, that's novel.

 

[billskip]

A boat that increases in value, that's novel.

Eclipse has, I cant afford it now.

 

[Seven Spades]

The HMRC rules are that a seller can sell without charging VAT as long as they export it and have proof of shipping. They can send it to a freight forwader but the freight fordcer must privide a certificate of shipment. What a seller cannot do is hand it over to the purchaser on the basis that they are leaving the country ticket or not. That does not constitute evidence of export. If a retailers does that he runs the risk in a VAT inspection that he will be held liable for the VAT on the goods.

 

[Neil]

My brother took some expensive water desalination gear to Greece. He was stopped and asked about VAT and duty. He argued the toss, saying it was his own personal gear and they were very nice about it and let him through. Even though he was in the wrong.

I pointed out that he was actually importing goods from the UK to the EU and anyone exporting for profit could also say it was personal gear, despite clearly being new in the original packing material.