VAT from USA

nashcom

I ordered something from the USA that was roughly $100. Delivery & insurance was an additional $50 (it sounded a bit steep to me too, but that's the way they worked it).

UPS in the UK have collected VAT/Import Duty based on $150. Is this correct, or should I only have to pay the VAT on the actual item cost.

walkercp

as far as my knowledge takes me you shouldn't of had to pay VAT for the goods, as for the delivery I would say you would have to (Was it DHL uk?)

Baby Elephants - free from artificial flavourings, colourings and preservatives

monty_dogcp

Yup, you are eligible to pay vat and duty on the cost of the consignment, including any delivery charges, so $150 is correct. For bike parts this can be 8% duty plus 17.5% vat. You certainly have to pay vat on the goods, regardless of whether they're new or used. Sometimes, if they're feel unscrupulous, they can charge you vat and duty based on the UK value of the good, or if trying to make a false declaration, will charge you a penalty of of twice the going rate. I always base my calculations on the cost of the consignment and sometimes I'm mildly surprised when they don't charge me the full amount.

pbiggs

I'd just like to back up what Monty is saying in that duty and VAT is payable on the total including delivery. This is clearly stated on one of the official websites I read recently.

<i>~Pete</i>