VAT & Import Duty on S/H goods bought on eBay

[quisquose]

Recently bought an expensive secondhand vase made by a well respected artist on eBay. It shipped in from the US, and just got the dreaded demand for import duty and VAT.

 

I was expecting this, and factored it into my calculation, but it was a rare item that I wanted anyway.

 

But I'm now scratching my head and wondering if this is right. Customs duty should only be due on the "importation of goods produced outside the European Union (EU)", and this item was made by a UK based artist, sold from her UK shop to somebody in the US, before being reimported back into the UK by me about 25 years later.

 

I don't think I should be paying any duty, and should question the charge. Does anybody else agree?

[ANGELFIRE1]

I would question it anyhow, it only takes a phone call I suppose.

 

Angel.

[illuminati]

I bought a second hand item from the US last year but was not charged duty as it was marked 'used part' but had been made in the US. Your vase was made in the UK but sold to the US so no VAT would have been charged on the sale, as it is now being sold back to the UK, duty is now due.

[Magilla]

Recently bought an expensive secondhand vase made by a well respected artist on eBay. It shipped in from the US, and just got the dreaded demand for import duty and VAT.

 

I was expecting this, and factored it into my calculation, but it was a rare item that I wanted anyway.

 

But I'm now scratching my head and wondering if this is right. Customs duty should only be due on the "importation of goods produced outside the European Union (EU)", and this item was made by a UK based artist, sold from her UK shop to somebody in the US, before being reimported back into the UK by me about 25 years later.

 

I don't think I should be paying any duty, and should question the charge. Does anybody else agree?

 

I think your interpretation of "produced" in this instance is flawed.

 

It does not only mean physically made, it could also mean to bring forth or yield, in which case the demand for duty is perfectly valid.

[quisquose]

I bought a second hand item from the US last year but was not charged duty as it was marked 'used part' but had been made in the US. Your vase was made in the UK but sold to the US so no VAT would have been charged on the sale, as it is now being sold back to the UK, duty is now due.

 

The lady that bought it did pay VAT, but I'm not really disputing that. It's the customs duty that I'm disputing, although the fact that there is VAT on the duty rubs a bit more salt in the wound.

 

My job involves some of this, but even the people we employ to sort this out get it wrong quite frequently as do HMRC although they often refuse to admit it.

 

The vase was made in the EC, so I'm disputing the customs duty. Just looking for some reassurance and agreement before I go into battle. I'll probably hit the "evidence" and "paperwork" barrier I'm sure.

[illuminati]

If it was sold to the US then the lady in question should not have had to pay VAT, it would have been zero rated, unless of course the rules were different then.

So I suppose you could look at it as being an item made in the EU, sold with VAT charged at the time, then taken on a 25 year holiday to the US then brought back to the UK. So in theory no customs charge should apply if you can prove VAT was paid at the time of sale. If this was not the case we would all be charged customs duty on tooth paste every time we holidayed outside the EU!!

[quisquose]

If it was sold to the US then the lady in question should not have had to pay VAT, it would have been zero rated, unless of course the rules were different then.

 

She shouldn't have paid VAT, and she should have declared it on entry to the US and paid any relevant US duty, but she did and she didn't I guess, much like most tourists.

[illuminati]

Either way I think you should go for it and do battle!!!

[cgksheff]

Recently bought an expensive secondhand vase made by a well respected artist on eBay. It shipped in from the US, and just got the dreaded demand for import duty and VAT.

 

I was expecting this, and factored it into my calculation, but it was a rare item that I wanted anyway.

 

But I'm now scratching my head and wondering if this is right. Customs duty should only be due on the "importation of goods produced outside the European Union (EU)", and this item was made by a UK based artist, sold from her UK shop to somebody in the US, before being reimported back into the UK by me about 25 years later.

 

I don't think I should be paying any duty, and should question the charge. Does anybody else agree?

 

 

 

You need to be a little bit more specific.

 

What do you mean when you say "import duty"?

 

Do you mean "Customs Duty"?

 

 

Import VAT will be payable. No contest.

 

BUT ... a previously exported work of art is entitled to a reduced valuation creating an effective rate of VAT of 5%.

 

 

 

"Customs Duty" is legally based upon "Country of Origin" .. where the item was made.

With documentary evidence that it was made in the EU, it is well worth contesting.

[Nagel]

Yes, you pay VAT on importing goods from outside of the EU. It's a total rip-off as you pay it on the value of the goods and the cost of shipping, then Parcleforce add £8 on top for collecting the money.

 

The only way to avoid this is to get the seller to lie on the customs declaration. Ask them to mark the item as a gift with a value of less than $60 then there is nothing to pay. Of course this can be risky because if the item is lost in the post you can only claim this value.