Vat On USA To UK Ebay Purchase

For the first time I've had to pay VAT (value added tax) on a ebay philatelic item from the States. The value of the stamp was only $38.75 so VAT was negligable but there was a £8 handling fee ($11.54) so I had to pay £9.37 ($13.52). I've had lots of items from the States higher than this with no problem but from this seller the whole envelope was covered in a customs declaration form so also no stamp. There was a warning on the listing but I've seen those before and always have received the item with a simple stamp and no declared value.

What are the rules? Would he have broken these if he hadn't declared the value?

Mike

I don't think you should have had to pay VAT here - the tax would be generated in the US. Are you sure it wasn't import duty? The Post Office requires a customs declaration for most of the material I post outsude the EU, unless it appears to be a letter

Quote...

"Import charges will depend on the type of goods imported and their value, which is stated on the Customs declaration form CN22 or CN23. Goods are not chargeable if the total value of goods in the consignment does not exceed £15*. Goods over £15 are liable for VAT."

Did the seller send the shipment directly to you or through the "GSP or Global Shipping Program"?

The item was sent USPS first class international mail (seller charged $2.70 postage). The charge form indicates that for anything over £15, VAT is chargeable. However this would only be known if the seller includes the price on a customs declaration form. All my other US purchases have just been sent as normal letters so no charge has ever been applied. That's why I wondered if there were any rules about using custom declaration forms. Obviously some sellers don't bother.

mikyh, I think you need to quit buying from this seller. I buy items from Germany and Holland all the time with customs papers attached and never paid any import duties.

Peter

Actually, the seller has nothing to do with it. It is strictly a matter of UK Customs and Excise, and more specifically the individual who examined the incoming item.

Royal Mail and Parcelforce can and do act as "agents" for HM revenue and Customs (or whatever they call themselves these days). They can open, inspect, assess and charge the relevant duties. I believe they actually pay the duty then collect from the recipient the amount due plus their handling fee.

Custom forms are not needed for first class international mail from the U.S,. if it's shipped at the letter rates.

Parcels and small packets are required to have custom forms. Your shipment was at the letter rate thus the customs form was completely unnecessary.

...."(seller charged $2.70 postage)"...

and you paid VAT on that too The calculation for import VAT is based on the price paid for the goods, including any local sales taxes, plus postage, packing and insurance costs.

Thanks for all the replies.

I contacted the seller and asked why they had sent it with a customs declaration form.

Got a nice reply, saying sorry and that "The ordinary first class letter mail is not able to get any record for shipping and shipping insurance available".

Looking at the letter again, I've realised that the custom declaration from used is computer printed and has a tracking number. I presume that would be cheaper than registered and allows proof of delivery.

Would still prefer a stamp and no VAT

Mike

When I used to buy large quantities of soul 45s from the US in the 1980s, I used to be hit with horrendous duty payments until I asked the sellers to give a low value on the customs form. But I understand why sellers would be uncomfortable doing this.

I sell quite a few lots internationally. I print the postage through E-bay, and it comes with the customs form and tracking number. The form is already filled out with the prices paid. One thing I have noticed is that only the first 5 lots in a particular order are shown on the customs form. I have no idea if the receiver has to pay any fees, never had anyone mention it at all. I have sold a few lots to people in the UK, but most go to Israel.