If you buy something in the US do you pay local taxes? Thinking internet purchase. You then also pay VAT when it is sent to UK. Is there a mechanism to claim back the US tax? I’m sure I’ve seen VAT free stuff for overseas buyers in UK.

If you’re there you pay the local taxes and then reclaim it at customs on the way out.
Internet – you won’t pay it as its not staying “local” but you will pay Import Duty and VAT when it gets here unless you know how to play the system……

You shouldn’t pay sales tax (USA VAT) but expect to be charged VAT and import duty before your goods are delivered in the UK. I think it is common for USA prices quoted not to include sales tax as it is different from one state to another. Check with whoever you are thinking of buying from.

Edit: I misunderstood. If you are in the USA claim back the sales tax at the airport before you leave like Hammy says.

IIRC, there is not a great “fit” between state sales taxes and VAT.

UK VAT is not charged on sales going outside the UK (or EU actually). So if a UK seller is delivering goods to the US, they do not have to account for VAT.

The reverse is not always true – some US state sales taxes apply to a sale made in the state, regardless of whether the goods are sent out of it.

So you could end up paying US state sales tax, UK import duty and VAT.

🙂

I got something in the post yesterday from America, value $16 didn’t get hit up for any other charges. I think it was to small an amount to bother with.

Pig face be careful, I had that then a week later got a bill for import duty and handling fee.

Yes, look out for that ‘handling fee’.