• This topic has 24 replies, 16 voices, and was last updated 4 years ago by paton.
Viewing 26 posts - 1 through 26 (of 26 total)
  • Paying tax on stuff you buy from the US but delivered to the UK
  • shermer75
    Free Member

    How much tax and duty do you have to pay on things you order from the US over the internet and is delivered to the UK? And do you still have to pay it if you bought something second hand from the US ebay? I’ve been window shopping a ZPack Duplex tent, which is not available to buy over here….

    Drac
    Full Member

    Home

    Should help.

    IA
    Full Member

    Normally:

    Item cost + shipping
    * Duty (rate depends on item)
    * VAT (20%)
    + courier handling fee (normally about £8)

    TheFlyingOx
    Full Member

    I think there’s a threshold below which you don’t pay any. I paid a shade under £130 for a KS dropper from the US and I paid no import tax, VAT or anything.

    CraigW
    Free Member

    Any goods worth more than £15 are liable for import VAT. Or up to £39 for gifts. And if more than £135, also liable for import duty.

    If buying from eBay, could use the ‘Global Shipping Programme’. That means you prepay the taxes, maybe cheaper postage and avoids any extra handling fees.

    woffle
    Free Member

    From memory ParcelFarce ‘handling’ charge is £12, over and above any tax and duties owed. Dependent on the size of the item it seems that you might get Royal Mail, or you get Parcel Force for delivery. RM, I think, charge less and typically the item gets to your local PO, and then you get a card requesting settlement of charges. ParcelFarce, it goes to the central hub and then the paper slip gets issued.

    eBay GSP from the US, at least in my experience, is horrendously slow – you do pre-pay the tax etc but the shipping takes multiples of the time it takes if the seller just ships via USPS or courier.

    I have a real issue with the £12 charge as fundamentally I fail to see how they get to insert themselves into the contract between the buyer, and the seller’s obligation to deliver the item – the contract is between the seller and the postal service(s) – or so you’d think. It’s also far from a true reflection of the costs incurred by PF in processing the item. Again, from memory I think there may be some court cases pending regarding the legality of these charges…

    jeffl
    Full Member

    I thought most sellers declare it as a low cost item when posting, so it falls below the threshold. I’ve never asked a seller to do this but I’ve always found that’s the case when ordering from outside the EU.

    tonyf1
    Free Member

    I think there’s a threshold below which you don’t pay any. I paid a shade under £130 for a KS dropper from the US and I paid no import tax, VAT or anything.

    You’ve been lucky and slipped through the net as the limit is £15. Prices quoted on US web sites don’t include Local Sales Tax (as it’s for export) which is why they look a bargain. Add on the handling, shipping, VAT and Duty (if applicable) and less of a bargain.

    I thought most sellers declare it as a low cost item when posting, so it falls below the threshold. I’ve never asked a seller to do this but I’ve always found that’s the case when ordering from outside the EU

    Unlikely it’s most, that would be a criminal offence (Tax Evasion) in most jurisdictions.

    woffle
    Free Member

    I thought most sellers declare it as a low cost item when posting, so it falls below the threshold. I’ve never asked a seller to do this but I’ve always found that’s the case when ordering from outside the EU.

    you’re also exposed to insurance risk if you can get a seller to agree to mark down for customs…

    dovebiker
    Full Member

    Declaring a low value has it’s pitfalls – if it’s lost you only get the low value for insurance. Also, HMRC can charge a penalty, twice their estimate if they feel there’s been a false declaration.

    patagonian
    Free Member

    I’ve shipped car parts from the US and noticed that anything coming in via Paris (can’t remember the courier but they were always american) didn’t attract any duty/fees whereas anything via Heathrow (and therefore ending up with RM/Parcelforce) did.
    I wouldn’t do it with the intention of saving money only for items I couldn’t get elsewhere.

    shermer75
    Free Member

    Just had a look with that tax and duty calculator Drac posted and for a $700 tent it would cost £200 (currencies intentional) (thanks Drac!)
    It doesn’t mention any Royal Mail or Parcel Force handling fees, it’s shipped via FedEx and subsequently charging a $50 shipping fee so you’d hope that they bring it to your door but, hey, sounds like everyone gets a chance to dip their finger in your pocket as soon as you cross an international border so I can’t see why Royal Mail should miss out lol

    dangeourbrain
    Free Member

    fundamentally I fail to see how they get to insert themselves into the contract between the buyer, and the seller’s obligation to deliver the item

    Because by law the importer (you) is liable for all taxes duties and charges arising from the import, not the seller. The charge from parcel farce and the like is a direct result of your legal liability for those charges.

    If the item is shipped ddp there is no charge to you from parcel force etc. as there’s no liability to you for any charges so no costs to handle it.

    That you don’t realise by importing goods you’re signing up to pay those charges doesn’t mean pf are inserting then selves into your contract, it means you don’t understand the contract.

    dudeofdoom
    Full Member

    A nice American company used to send my stuff over with a birthday card with everything marked as gift 🙂

    But your still at the mercy of hmrc.

    Another option is to use someone like bundlebox and prepay all taxes.

    shermer75
    Free Member

    So if I was using, say, FedEx,would I then have to pay FedEx and extra fee over and above what I had already paid because I am also having to pay duty and taxes?

    CraigW
    Free Member

    Looks like FedEx charge an admin fee of £12, or 2.5% of the tax, whichever is higher.
    https://www.fedex.com/en-gb/billing/duty-tax.html

    shermer75
    Free Member

    Ah, ok!

    endomick
    Free Member

    I bought something from Canada for 60 usd with free delivery and ending up having to hand over £16 to royalmail at the collection point before they gave me my package.

    rOcKeTdOg
    Full Member

    Once we sign the amazing American trade deal we’ve been promised they’ll be paying us to take delivery of their goods Shirley?

    woffle
    Free Member

    Because by law the importer (you) is liable for all taxes duties and charges arising from the import, not the seller. The charge from parcel farce and the like is a direct result of your legal liability for those charges.

    If the item is shipped ddp there is no charge to you from parcel force etc. as there’s no liability to you for any charges so no costs to handle it.

    That you don’t realise by importing goods you’re signing up to pay those charges doesn’t mean pf are inserting then selves into your contract, it means you don’t understand the contract.

    I understand entirely about the tax and duties owed – but the ‘handling’ charge in no way represents a fair representation of the costs incurred by PF/RM in processing the collection of duties. That’s my issue with it…or are you saying that the £12.50 is what it costs those companies to process things?

    tonyf1
    Free Member

    I understand entirely about the tax and duties owed – but the ‘handling’ charge in no way represents a fair representation of the costs incurred by PF/RM in processing the collection of duties.

    I complained to RM about the £8 handling fee in that it was disproportionate to the cost to collect. Response in quite a long letter was the level was set in law by Parliament.

    kilo
    Full Member

    Rm is a limited company of course 12 quid isn’t the pure cost they will obviously making a profit, why would you think any different?

    maccruiskeen
    Full Member

    I thought most sellers declare it as a low cost item when posting,

    many moons ago I curated a short film festival with submissions invited from all over the world. You’d be surprised at the number of people who can put a vhs tape in a Jiffy bag then declare the full production cost of the movie on the label 🙂

    dudeofdoom
    Full Member

    but the ‘handling’ charge in no way represents a fair representation of the costs incurred by PF/RM in processing the collection of duties.

    What’s a fair representation of costs 🙂

    They charge for the additional farf like hanging onto it until you’ve paid and doing the card all sticking it through your door that guff, all costs.

    tbh it’s only really an annoyance when it’s small denomination all part of the costs involved if you wanna personally import something.

    dudeofdoom
    Full Member

    Once we sign the amazing American trade deal we’ve been promised they’ll be paying us to take delivery of their goods Shirley?

    Conversely may have to pay handling for eu goodies if it goes a bit gooey.

    I used to giggle when buying a pair of schwalbes from Germany for a tad more than the cost of a single one here.

    paton
    Free Member

    Some people will tell the courier company before the item arrives in the UK that they have appointed them as their import agent.
    https://www.gov.uk/guidance/appoint-someone-to-deal-with-customs-on-your-behalf

    Some people apply for an EORI number before importing goods.
    https://www.gov.uk/eori

    And some people just try to smuggle stuff in
    https://www.bbc.co.uk/news/business-42143849

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