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Tax
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Does anyone know what custom tax is the percentage, so if I was importing something from usa to uk how much would be added on in custom tax and does vat get added on as well
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(2-part post):
The list of charges for common internet goods is here:
http://customs.hmrc.gov.uk/channelsPortalWebApp/download File?contentID=HMCE_PROD_009989
To make use of the table, you need to know the following:
1. If the import duty comes to less than �7, this is waived.
2. If the value of the goods is less than �18, VAT is waived.
3. If there is duty to be paid, then VAT is charged on this, as well as on the item itself.
4. The table applies to internet purchases made from any country outside of the EU. There has been a trade dispute with the USA, however, which means that the UK has been imposing additional import duties upon certain items (notably clothing) from the US. This is because the USA was imposing some trade restrictions which breached the rules of the World Trade Organisation. The UK has been exercising its right to take retaliatory action. I know, however, that the USA has recently relented on certain issues, so these extra taxes might soon be abolished.
5. The inspection of imported packages is contracted out, by UK Customs, to Parcelforce Worldwide. They are permitted to levy a charge (currently �8) for inspecting goods and assessing the other charges to be paid. However, this examination fee is waived if there is no tax or VAT to pay.
The list of charges for common internet goods is here:
http://customs.hmrc.gov.uk/channelsPortalWebApp/download File?contentID=HMCE_PROD_009989
To make use of the table, you need to know the following:
1. If the import duty comes to less than �7, this is waived.
2. If the value of the goods is less than �18, VAT is waived.
3. If there is duty to be paid, then VAT is charged on this, as well as on the item itself.
4. The table applies to internet purchases made from any country outside of the EU. There has been a trade dispute with the USA, however, which means that the UK has been imposing additional import duties upon certain items (notably clothing) from the US. This is because the USA was imposing some trade restrictions which breached the rules of the World Trade Organisation. The UK has been exercising its right to take retaliatory action. I know, however, that the USA has recently relented on certain issues, so these extra taxes might soon be abolished.
5. The inspection of imported packages is contracted out, by UK Customs, to Parcelforce Worldwide. They are permitted to levy a charge (currently �8) for inspecting goods and assessing the other charges to be paid. However, this examination fee is waived if there is no tax or VAT to pay.
Some examples are needed to make things clearer. (To keep it simple, I've omitted the costs of post & packing):
Example 1: You buy a novel for the equivalent of �10. There's no tax or VAT to be paid, so Parcelforce Worldwide don't levy an examination fee. So, when the postman delivers your book, there'll be nothing to pay.
Example 2: You purchase a DVD for the equivalent of �10. The tax is only 35p, so this is waived. VAT won't be charged because the value of the item is under �18. Once again, because there's no duty or VAT to be paid, Parcelforce Worldwide won't levy a fee and the postman will deliver the item without requiring any payment.
Example 3: You purchase a boxed set of DVDs for the equivalent of �25. Because the duty is only 88p, this is waived. The value of the item, however, is now over the �18 threshold, so VAT, at 17.5% is charged. This is �4.38. Since there's now a charge to be paid by you, Parcelforce Worldwide can levy their �8 examination fee. So, when the postman calls, he'll demand �12.38 before handing over your DVDs.
Example 4: You purchase a jacket for the equivalent of �70. Assuming that the trade dispute, referred to above, is over, duty will be charged at 12%. (If the UK continues to levy additional charges, this might be much higher). So the duty is �8.40. (Because this figure is over �7, the duty won't be waived). VAT will now be charged, at 17.5%, on �78.40. This is �13.72. Parcelforce Worldwide will also charge their �8 fee. So, when the postman calls, he'll require �30.12 from you.
Chris
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