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EU taxes

Discussion in 'Off-Topic Discussion' started by pete, Aug 25, 2021.

  1. pete

    pete Growing a bit of this and a bit of that....

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    This came to mind when @CanadianLori mentioned she could claim back taxes when buying stuff in the US.

    My plate that goes on the turntable of my microwave shattered when the oven was in use.
    Cut a long story short, but still trying to get it replaced under warranty.

    Any way got fed up waiting so bought one from the Panasonic site
    It arrived today, it has £4.39 vat on it and for some reason it was sent from Germany.

    As we are no longer in the EU can I claim back the tax?

    I know visitors to the UK could usually claim back taxes that they paid while visiting.
    So what is the difference now.
     
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      Last edited: Aug 25, 2021
    • CanadianLori

      CanadianLori Total Gardener

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      @pete that is curious. I don't get charged tax on items shpped from the states unless the customs person assesses it for Canuck tax.

      Why woukd the EU be keeping that money?
       
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      • Black Dog

        Black Dog Gardener of useful things

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        *looks over to Brexit*

        It's complicated...
         
      • pete

        pete Growing a bit of this and a bit of that....

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        I bet it is, I'm still not sure we have left.;)
         
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        • NigelJ

          NigelJ Total Gardener

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          You mean like "Hotel California"
           
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          • pete

            pete Growing a bit of this and a bit of that....

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            In reality the tax called VAT should be replaced with some thing like Purchase Tax as it used to be known.
            I know it will be still the same, and we will still pay it, but the name VAT suggests its still an EU tax.
             
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            • gks

              gks Total Gardener

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              No, you will not be able to claim back the tax, just the same as if you had purchased it over here. Visitors can only claim back on what the allowance is of the goods you are bringing back to your home country. The UK has an allowance of £390 on goods for personal use or as a gift, where you can claim back the tax (vat) in the country you have visited, normally at the airport.

              In Thailand we have been asked if we would like a receipt on goods like souvenirs, clothes or a handbag that we have purchased as gifts for my family in the past. As sales tax, VAT is 7% in Thailand and the UK has an allowance of £390, I can't be bothered keeping hold of receipts just to claim back £30 at most.
               
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              • pete

                pete Growing a bit of this and a bit of that....

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                So if the VAT rate is different over here than it is in Germany which rate would I pay?

                I recently bought goods from India and I'm finding, since Brexit, I dont pay import duty anymore.
                 
              • gks

                gks Total Gardener

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                My understanding of it, which is like most other people, vague. For goods now purchased from the EU then it is the UK rate of 20% must be charged. It won't be just the goods where VAT at 20% is charged but also for shipping costs. As for import duty, I think that depends on the value of the goods, I would of thought there is a threshold before customs duty kicks in. I pay import duty on certain items and nothing on others, it depends on the product, not valuation, but that is for business not personal use.
                 
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                • noisette47

                  noisette47 Total Gardener

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                  Because the UK became a 'rest of the world' country when it withdrew from the EU. It relinquished it's preferential trade agreements with the EU. It works both ways. Europeans ordering anything from the UK now will pay excise duty on the goods. So we don't :biggrin:
                   
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                  • pete

                    pete Growing a bit of this and a bit of that....

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                    No, you have got what I'm saying wrong.
                    Excise duty is not being charged from Europe its VAT, just the same as it was when we were in the EU.
                    If they were charging excise duty I could understand it.

                    Anyway, I didn't order the item from Europe, I ordered it from Panasonic in the UK, it was sent from Germany.
                     
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                    • pete

                      pete Growing a bit of this and a bit of that....

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                      OK a theoretical question.
                      If I bought something from a non EU country, do I still pay VAT/
                      If I do, where does the VAT part go, does the UK government get it.

                      I assume if buying from a non EU country I wont be paying the local tax on that product.
                       
                    • gks

                      gks Total Gardener

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                      VAT is charged and due at the imported country and goes to HMRC, you should not pay a local tax at point of origin. The only time you are unlikely to pay VAT will depend on the goods, children's clothes and footwear are zero rated in the UK, so I would not expect to be charged VAT if I purchased them from abroad.

                      I have to pay VAT on imported goods to HMRC before they are cleared by customs, I do not pay at point of origin or pay a local tax. As it is for business and to sell on, then I claim the VAT back. Then when I sell the goods on to trade a customer they will get a VAT invoice which I collect and pay HMRC, that trade customer can then reclaim that VAT back. It is only when the general public make a purchase that HMRC get the monies.

                      So, basically, if your not VAT registered, you pay VAT. The only way the general public can claim back any VAT, is as a tourist.

                      So if my in-laws came to the UK they could claim back the 20% VAT they would pay on any goods up to the personal limit set by Thailand. The personal allowance for a Thai national is 10,000 Thai baht, which is roughly £220, that is the maximum amount they could claim back the VAT content, which is about £36, it would be claimed back before exiting the UK.
                       
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                        Last edited: Aug 26, 2021
                      • shiney

                        shiney President, Grumpy Old Men's Club Staff Member

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                        Agree.

                        VAT is not an EU tax, it is a UK tax (similar taxes in lots of countries) and you pay it on most things sold in this country. It didn't matter what country it came from as it was being sold to you by a business in the UK. Even if it was ordered directly from another country it would still carry VAT or Excise Duty - unless it was expressly classified as a gift worth £39 or less.

                        There is a slight complication. If not a gift then If it is worth over £39 but under £135 the VAT is chargeable at source (by the seller but, in theory, returnable to HMRC) and if worth over £135 is payable to the delivery company (either charged in advance or collected on delivery). If you send the goods back you can claim the VAT back.

                        Excise Duty is chargeable on goods over £135 but at different rates. :rolleyespink: £135 - £630 it is 2.5% and above that the rate depends on what it is.

                        Just a note:- if buying a few items from abroad that would total more than £39 it may be better to have it split into smaller packages (and labelled as a gift) with a value of under £39. You just need to balance the possible extra postage against the VAT. We buy some things from the U.S. that are £10 each (no p&p) and we buy 6 at a time. So we ask for it to be sent in two packages of 3. Saves us £12 VAT. Perfectly legal as you can order any number of small items you wish. :blue thumb:

                        If your item had been labelled as a gift it would not have carried VAT but it would have been lying as to what it was.

                        We send small things abroad and need to label the customs form with the correct wording for that country. Norway is our biggest problem as, sometimes, even if we label it correctly as a gift the Customs sometimes open it to check it. They then charge a fee for checking it even if it is correct!!! :wallbanging:
                         
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