# Import Duties And Vat



## flaxman (Dec 14, 2010)

I've just imported a used 1958 watch from the states. I paid less than Â£80 for it and it was delivered today signed for. On the box was a sticker from the UK Border Agency telling me that the package can't be delivered until certain duties had been paid. Well thats an oxymoron in itself because the package had been delivered! It says on the sticker that there is no import duty or excise duty, but there is Â£20.12 VAT charge and Â£13.50 Parcel Force Handling Fee charge a total of Â£33.62. I bought this watch from the bay and had already paid a hefty postal charge.

I'm a bit confused in that:

1. I thought VAT could not be charged on second hand goods.

2. The price of the watch was Â£80 so a 20% VAT charge of Â£20.12 does not really work out.

3. Handling charge??????

Does anyone know what is going on here?


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## tall_tim (Jul 29, 2009)

I think the VAT gets charged on postage costs too. The handling charge is what parcel force charge you for the privilege of them collecting the vat.

But if they have delivered - tough for them I'd have thought. They gave you the parcel, you signed for it, so surely they cannot then turn around and ask for the cash. Or perhaps your postie is a maverick and decided not to charge you?!


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## flaxman (Dec 14, 2010)

tall_tim said:


> I think the VAT gets charged on postage costs too. The handling charge is what parcel force charge you for the privilege of them collecting the vat.
> 
> But if they have delivered - tough for them I'd have thought. They gave you the parcel, you signed for it, so surely they cannot then turn around and ask for the cash. Or perhaps your postie is a maverick and decided not to charge you?!


Interesting point tim. He just came to the door with his electronic thingybob got my signature and scuttled off....maybe he just wanted to get out of the rain?


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## mel (Dec 6, 2006)

Cans of worms :yes: If you bought and paid for it before1st January, it should only be 17.5%, 'cos that's when the VAT was increased.

VAT is Value Added Tax - the Guvmint reckons by buying from the US you're trying to avoid paying VAT, so them revenoo-ers is gonna' try and charge you fer it as the sales value is over Â£18, the maximum you can import without duties being paid. When we were involved with the Chairmanship of the British Caravan Club, we used to often do things like having a joint meal, like someone would go round the caravans and take an order for the chippy shop, phone it in and go collect. Then we'd meet up in the hall for our chippy and have a wee dance Saturday nights Social evening. :yes:









VAT folks tried to stop us, although food is exempt, by collecting it and providing a place to eat it, we were providing a service and it became liable to a VAT charge :bull*******:

And VAT people are OPERATED UPON TO REMOVE THEIR SENSE OF HUMOUR. When they came to inspect the books and started pulling me up about things, (me - an amateur doing the job for nowt) I gathered it all up in some envelopes, and said,

"This is a voluntary position, you can take it with you and you sort it out, or I'll put a match to it now. I resign! You will leave now!"

They left rapidly and I never heard from them again. I did resign two years later and when the new guy took over, I think he buckled and started doing it. :to_become_senile:

If you do get an invoice for the damages from them, query the costs and ask for a breakdown of why you've been charged, 'm a great believer in MAKING THESE KIND OF FOLKS WORK FOR THEIR MONEY before I hand over any. Always ask for copies of any regs they quote you, as a member of the (great unwashed) public, you can hardly easily have access to something like

The Importation of Goods Regukations, Sub Section D, Paragraph 3c Addendum 47d

- - - actually, they quite often give up and go away if you act non understanding stupid enough and keep querying things :lol:


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## mrteatime (Oct 25, 2006)

i dont think that its unreasonable to charge VAT if your importing something from outside the EU....why not? everybody else has to pay tax on things they buy, so if you do get something from the states or elsewhere that might incur a charge *you need to factor that in*.....ive been caught out on more then one occasion, but more often then not, ive been lucky.....


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## flaxman (Dec 14, 2010)

Wise words mel, which I will remember if they come back at me.


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## Dr_Niss (Jan 4, 2011)

mrteatime said:


> i dont think that its unreasonable to charge VAT if your importing something from outside the EU....why not? everybody else has to pay tax on things they buy, so if you do get something from the states or elsewhere that might incur a charge *you need to factor that in*.....ive been caught out on more then one occasion, but more often then not, ive been lucky.....


I agree, you have to factor in VAT but I was surprised that the handling charge for relatively cheap items can be twice as much as the VAT


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## clockworks (Apr 11, 2010)

The handling charge is a fixed fee for doing the paperwork on your behalf, collecting the tax you owe, and passing it on to HMRC. You pay the same, regardless of the amount of tax, because it involves the same amount of work.

Different carriers charge different amounts for the service. Post office is the cheapest. Parcelforce charge more.

VAT is due on the total cost of goods and shipping, same as when you buy a new item from a UK mail order supplier.


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## flaxman (Dec 14, 2010)

mrteatime said:


> i dont think that its unreasonable to charge VAT if your importing something from outside the EU....why not? everybody else has to pay tax on things they buy, so if you do get something from the states or elsewhere that might incur a charge *you need to factor that in*.....ive been caught out on more then one occasion, but more often then not, ive been lucky.....


To be honest I have no guilt at all about indulging in a small piece of tax avoidance. I pay tax 24 bloody hours a day...I pay tax on tax. Income tax, car tax, VAT on just about everything, National insurance, tax on gas, tax on water, community tax, tax tax tax.... so don't talk to me about it not being unreasonable to charge me VAT on a second hand watch.....grrrrrrr!!!


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## harryblakes7 (Oct 1, 2010)

Ah import duties.......... :furious:

i bought an old balance staff for an american watch, had to pay Â£18 import duty, opened box, staff damaged.

Told them it was damaged so they sent me another, and after much discussion  at the sorting office had to pay another Â£18 import duty, even though the first lot of goods was damaged, tried to explain but it was like talking to a :wallbash:

Watch was fixed, telling the owner i paid Â£36 tax was interesting......... :no2:


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## mrteatime (Oct 25, 2006)

flaxman said:


> mrteatime said:
> 
> 
> > i dont think that its unreasonable to charge VAT if your importing something from outside the EU....why not? everybody else has to pay tax on things they buy, so if you do get something from the states or elsewhere that might incur a charge *you need to factor that in*.....ive been caught out on more then one occasion, but more often then not, ive been lucky.....
> ...


we're all in the same boat


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