Tax reduction from EU! :)

[Alan]

I just phoned the import tax people to be told that if I buy something like a guitar from the EU and the seller includes an EUR1 form that the duty goes from 3.2% to 0%, you still have to pay VAT, but still saves a little.

[Richard]

What sort of guitar is you want, is it very expensive?

[Alan]

Just keeping up to date with import tax for instruments coming from the EU

[robn]

Now - 2009 - goods are moved freely between EU countries - there is no import duty applied for sales between EU countries. But VAT is more complex.

VAT registered Seller

If a VAT registered UK shop sells to, say France, then the shop pays the VAT on that sale to the UK gov. Unless the buyer is VAT registered - in which case the buyer gives the seller their VAT number (declared on the seller's next VAT return) and VAT is not charged.

Non VAT registerd seller

VAT is not applicable to either the buyer or seller. So for a private sale from, say Germany, there will be no charges.


Under both systems you will not be liable for VAT in your own country for imports from within the EU - It is the sellers responsibilty and liability for any VAT that applies.

Outside the EU

You will be charged (as the buyer) both VAT and import duty if you buy from outside the EU (say from the USA). These charges are the buyer's responsibility and goods may be held by customs until the charges are paid. What usually happens is the courier holds the goods and sends you a bill for duty and VAT plus a hefty charge (£10 to £15) for doing the tax man's work for him. VAT and import duty are added to the value of the goods and shipping costs so you can end up paying twice as much as you first thought you would when buying from outside the EU - particularly for small items (tuners/ pick-ups etc) where the handling costs become a significant factor.

Robin

[Deleted]

Just to add to the outside EU
That there is a threshold. If you order goods that including shipping come to less than £30. There is no import duty or Vat added when ordering from the states.
So as ive recently ordered some waverly tuners & other bits from Stewmac. I have placed 2 orders 1 for the tuners which i will have to pay import tax, Vat & a handleing fee on & 1 for the other bits & peices as i won't have to pay anything on them.
It's cheeper to pay the snail mail, than the tax's adding the bits to the other order.
Also in my experience when ordering from Stewmac if you get it shipped by DHL you always get a handleing charge. Where as the slower airmail option only charges you a handleing fee when you have to pay duty. ( it also isn't very slow usually less than a week.)

Barn