VAT loophole??

[Mike]

Looks like they are thinking of scrapping the "Low Value Consignment Relief" on imported stuff.

At present set at £18.

http://www.bbc.co.uk/news/business-12323347

This will be the end of many single lower priced badge purchases from overseas, because the Royal Mail's vat collection fee is £8, so if you buy a badge from Canada/ US or downunder for say £5 you have 20% vat and £8 to pay, making that £5 badge £14.

That fair isn't it?

[Mike]

They can't possibly scrap this completely? what if you import something worth £1 or less ...you pay £9.20? that would be bonkers wouldn't it?

[2747andy]

Originally Posted by Mike

They can't possibly scrap this completely? what if you import something worth £1 or less ...you pay £9.20? that would be bonkers wouldn't it?

Any Forum Members in the Channel Islands could prove useful friends??

Andy

[paj1]

Its about right for the uk what with the vat increase, cost of fuel ect
pretty soon knowone will have any money left to spend on badges or
anythink else what a shame
paj1

[Mike]

Originally Posted by paj1

Its about right for the uk what with the vat increase, cost of fuel ect
pretty soon knowone will have any money left to spend on badges or
anythink else what a shame
paj1

Well I'm getting a sense of foreboding about it all. Every time you watch the TV news or open a paper it's public sector cuts or tax hikes.

[Jibba Jabba]

Mike,

There are some Canadian and Australian dealers who ship as 'gift', with out invoice enclosed (you have an electronic copy sent to you) on low value badges.

Their opinion is that UK Customs wont chase them on the other side of the world for the sake of a 18 pound badge. Dealers have friends just like anyone else, so who is to say that they are not gifting badges to their friends? Try and prove that one!

There are of course other dealers in Canada and Australia who dig their heals in. I simply cannot afford to buy from them if I am have to pay twice the price listed on their web site. They are obviously not going to give me 50 percent discount because I am British!

Laws are being passed by people who do not understand the implications. Why we are paying Import VAT on antique items, that on the most part you cannot buy in the UK? I can understand it with something like DVDs where you would be forced to turn to UK high street retailers but "one-off" antiques?

[Old Smelly]

I have been caught a few times but only on high value items, I got the impression that they let lower value items through but maybe they are tightening their belts. There is also the import duty on items originating or manufactured outside the EU. I did query this charge as the item I purchased was made in UK, sent to Canada, then sent back again, but they would have none of it. Just assume that everything you earn will be taxed, when you spend it, taxed again, and what you have left in the end.....you guessed it taxed.
Lee