VAT on imported goods bought on Ebay.

I recently bought a guitar from a seller on Ebay in the USA and was stung by customs to the tune of £89 when it came into the country.

I was surprised by this as the instrument would have been cheaper to buy over here had the sole UK distributor not sold out. In fact, the price of the guitar would have been less with P&P included than the flat cost of it from the U.S seller. If it had been cheaper over there I could have understood being charged VAT on it.

Do I have grounds to contest UK customs charges?

Nope, unless it was clearly marked as a sample or gift.

Your best bet is to have an American friend to buy the items for you and then ship them on as a "present".

What grounds do you believe you have? To be honest it's only like buying alcohol and tobacco really. Over a certain amount will be subject to an import tax etc

Have had presents (real ones) sent from America and I still got stung too. It's more to do with not going over a certain value (inc P&P) if I am correct. I've been hankering after something from the States for a while (LOL) and am cautious because of the extra's on top this side.

I'm not sure what grounds I have not being savvy with the ins and outs of HM Customs rip-offs, that's why I was asking. I just seemed wrong to have to pay import VAT on something that would have been cheaper to buy over here if the sole distributor had any left in stock.

Having read a bit of the HM Customs and Revenue website, it seems that there may be a possibility of a refund on the grounds that the instrument is one of only 70 produced by the manufacturers. There appears to be some sort of exemption for goods that are classified as collectors items.

I bet the process in recieving a refund is made as complicated and off putting as possible. The form you need to fill in is jargonistic and threatens severe penalties against those who make false claims. I wonder if a genuine mistake or misunderstanding would be seen as a false claim?

I recently bought a guitar from a seller on Ebay in the USA and was stung by customs to the tune of £89 when it came into the country.

 

I was surprised by this as the instrument would have been cheaper to buy over here had the sole UK distributor not sold out. In fact, the price of the guitar would have been less with P&P included than the flat cost of it from the U.S seller. If it had been cheaper over there I could have understood being charged VAT on it.

 

Do I have grounds to contest UK customs charges?

If you import a guitar to the Uk from outside the EU there are several taxes that you will have to pay.

Take the invoice price of the guitar add shipping and handling charges. The total of that is then subject to both VAT and an import tax on electrical goods which is I think around 3% or so. You could even get stuck for a handling charge by the couriers who pay the VAT etc on your behalf and then claim it back from you.

Have had presents (real ones) sent from America and I still got stung too. It's more to do with not going over a certain value (inc P&P) if I am correct. I've been hankering after something from the States for a while (LOL) and am cautious because of the extra's on top this side.

I think it's anything over £18 but I've not looked into it in depth. Not sure about the gift angle, there must be concessions otherwise there wouldn't be a warning on the Customs website about the buyer being responsible for correct documentation being attached to goods when sellers entice them by saying they'll classify it as such.

If you import goods to sell as a business I think you pay a reduced VAT rate but what does it take to be officially thought of as a business? Are professional musicians classed as businesses, if so how do you prove that you're importing instruments to use in your work?

Anyway, if you really want something and you can't buy it in this country, it's probably worth having it shipped in from somewhere else. If I ever do it again, I'll contact Customs to work out how much they'll add to it as part of their little scam.

I recently bought a guitar from a seller on Ebay in the USA and was stung by customs to the tune of £89 when it came into the country.

 

I was surprised by this as the instrument would have been cheaper to buy over here had the sole UK distributor not sold out. In fact, the price of the guitar would have been less with P&P included than the flat cost of it from the U.S seller. If it had been cheaper over there I could have understood being charged VAT on it.

 

Do I have grounds to contest UK customs charges?

If you buy something in the US you pay 'sales tax' (a local tax, like our VAT). If you buy it 'from' the US, you pay VAT at the UK rate, as well as import duty.

The item/s can be declared as a 'gift' or 'present', but there must be no evidence of any exchange of money or HMRC will not only charge you VAT and import duty, you'll also get a nice fine.

Import duty is designed to promote and protect local business and produce - as you say, the UK suppliers costs would have been cheaper, over all, than buying it from the US.

Now, if you had got on a plane, flown to the US, bought it (and paid the US sales tax), you could have brought the goods back in for no extra charge whatsoever (apart from the plane fare!!!).

If you import a guitar to the Uk from outside the EU there are several taxes that you will have to pay.

 

Take the invoice price of the guitar add shipping and handling charges. The total of that is then subject to both VAT and an import tax on electrical goods which is I think around 3% or so. You could even get stuck for a handling charge by the couriers who pay the VAT etc on your behalf and then claim it back from you.

I wish I'd not become obsessed with having that particular guitar. A shop in Nottingham was selling them for £50 less (with P&P included) than the American Ebay seller was. Being too late to catch that deal, I went to the sole U.S distributor.

Add P&P from Oregon to that and HM's Customs baksheesh, I ended up paying £209 more than I originally thought I would. If I'd known it'd turn out like this, I'd have been a bit less obsessed. The bloody thing should play itself for that, do the hoovering, walk the tortoise AND make me irresistibly attractive into the bargain!

I wish I'd not become obsessed with having that particular guitar. A shop in Nottingham was selling them for £50 less (with P&P included) than the American Ebay seller was. Being too late to catch that deal, I went to the sole U.S distributor.

 

Add P&P from Oregon to that and HM's Customs baksheesh, I ended up paying £209 more than I originally thought I would. If I'd known it'd turn out like this, I'd have been a bit less obsessed. The bloody thing should play itself for that, do the hoovering, walk the tortoise AND make me irresistibly attractive into the bargain!

What sort of guitar was it. I collect old guitars and have had imports from the States.

If it was a 1958 Les Paul it would make you irresistibly attractive.

Why do you keep characterising VAT as a scam or rip off? Do you understand what it is and why it applies to the item you've purchased?

Gift doesnt always work, I find the best to use is warrentee return no cash value