Import Duty/Tax/Vat to UK from Aus...?

[Paul Thompson 'Hooligan']

Right - Thought I'd post here as one of you knowledgeable chaps is bound to know the answer.

I have just been sent a set of motorcycle clocks from Australia for me to test for their AUS owner. This is being done at no charge from me. I'm not sure how he sent them but they are currently being held by Parcelforce until an import duty tax (£16.33), VAT (£63.66) and Parcelforce Clearance fee (£13.50) is paid. Total £93.49...

So what's that all about then? - I thought there was only import duty to be paid on goods remaining in the UK or that are being used to generate revenue within the UK.

The owner has traced them and emailed me beforehand to warn of additional bill, saying if I can pay it he'll pay me. Now I have no problem with paying the bill, I trust the chap but surely this is not right??

Is there a method he should have used to send them, considering I am just testing them then returning, seems a lot of tax for him to get lumbered with...

Any thoughts welcomed..

 

[Brett James-McCall]

Paul,
It depends what he has put on the value of the books on the customs declaration form. If he put the true value of the books then they take that add duty, then add shipping and add VAT to the whole lot. If he had put it as a gift and marked it under £30 then it wouldn't get taxed. Or that is how I remember it.

 

[Ian Anderson]

Paul

When goods come into the country up to £29 is free to import

After that they take the declared value and add the post/ freight costs

They convert this to GBP at the rate on Customs and Excise web site
You then pay the relevant Duty (At whatever the rate is for the goods)
And import VAT on the said amount too
The Parcelforce charge is their admiin fee

If you are VAT registered in the UK you can reclaim the VAT but the admin fee and Duty is in Gordon's back pocket.

Except when
You re export the goods to a country outside the EU
At that time if you have kept all the customs clearance documentation and put in a claim top Customs and Excise (HMRC now) you can claim back both the VAT and Duty - until that time they have your money!
This is a bit of a painful system but does work

Ian

 

[Paul Thompson 'Hooligan']

Well strangely enough, the chap has just emailed me and confirmed that he can claim all (well most) of the costs back upon return providing I can give him a letter stating that I will not be claiming, so hopefully sorted.

Just too much red tape these days and of course ParcelForce just sit in the middle claiming innocence whilst they 'SKIM' their handling fees off the top..

Thieving b'stards!:veryangry:

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and Relax....
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Thanks for the input though chaps - I knew you lot would know....:thumbsup: