1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Import Tax - Reclaim Tax From Origin Country?

Discussion in 'Clothing, Gadgets & Equipment' started by Ian, May 5, 2022.

  1. Hi,
    I’ve bought a pair of Termis from an Italian shop via eBay. I’m expecting to pay import tax before i get them. Fair enough.
    My first question is will the company in the origin country (Italy) have added their equivalent of VAT as part of the price I paid - and if so will it be reclaimable by me as they immediately got exported?
    Next question, If I can claim it back, does anyone have any ideas how I’d do it please?
    Thanks in advance,
    Ian.
     
  2. Which Italian eBay shop ? The listing should cover the payment (or not) of IVA. If the retailer does not have an agreement with HMRC to collect VAT on its behalf (for purchases over £135) you should not be charged IVA. That being the case, you will have to pay VAT in the UK, probably to the courier before they will deliver. There are 59 categories of motorcycle parts that attract import duty ranging from 0% to 25%. I have at the back of my mind that parts sourced and manufactured in the EU, do not attract import duty but it's a minefield. One thing, couriers are notorious for making up and adding their own charges to cover “admin” costs. Andy
     
    • Like Like x 1
  3. Most sellers now on Ebay remove the source VAT so that you are buying it net and then pay the UK VAT when it enters the country.

    I almost bought an exhaust a little while back from an Italian dealer on EBay and they said exactly this although their listing did not mention that the Italian VAT had already been removed thus making it look cheap until you add the UK VAT....
     
  4. It’s NORAC Racing Parts. I’ve had a look at their webpage and the exhausts are marketed at €2250 - significantly more than the £1550 I paid. I’m thinking that the Italian Tax is automatically removed by either themselves or eBay when it’s sold via eBay UK? Would this sound reasonable / plausible?
     
  5. Thats certainly what they should be doing so you pay UK VAT only.....
     
  6. I paid £1550, so if I end up paying 25% tax It’ll be £1937, which is about the same / slightly less than uk sourced ones. Assuming the courier doesn’t take the mick regarding charges I shouldn’t be any worse off, hopefully slightly better…. Time will tell!
     
  7. yep that’s the theory, the vat you would have paid in Italy should be pretty much the same as the UK. Then just depends on the handling charges
     
  8. Online facilitators like eBay and Amazon are now obliged to add UK Vat to any sale from abroad. That's regardless if the item is used l, the sale is private or via a dealer. Dealers are supposed to remove local Vat.
     
    • Like Like x 1
  9. I ordered my exhaust for my bike on April 26th. It’s been stuck in the Italian post since they posted it on 4th of May, and hasn’t yet even left Italy. The predicted delivery date was (and still is according to eBay) the 6th of May. Is it too early to start asking for my money back? I sent a message on Saturday asking for an update and have received no reply…
     
  10. I debated ordering some Arrow cans from an Italian seller on eBay as they were a little cheaper (once factored in UK vat) plus the guesstimate of what the courier charges would be?
    In the end I opted to buy from B&C on eBay, UK official importer, they have to order them from Italy but still, ordered last tues, they have left Italy, should be with B&C tomorrow/Wednesday and then with me by the end of the week.
     
  11. If they used their postal services the chances are its either with customs in never never land inbetween them and Parcelforce. It will only come through our Royalmail if they paid for a premium service.
     
  12. Further to what is said above, and for future reference, the following may help.
    The link below is to a UK Government document on UK/EU VAT arrangements after 1 Jan 21:
    https://www.gov.uk/government/publi...s-goods-sold-to-customers-from-1-january-2021 .
    If you wade through the government guidance on Vat and duty requirements for motorcycle parts, depending on what they are, they may be zero rated for duty - Commodity Code 8714109090 is zero duty - but the VAT should only be paid once and UK import Vat is 20%.
    It seems the following is the case for motorcycle parts brought through this route.
    Under the terms of “The EU–UK Trade and Cooperation Agreement (TCA)” arrangements, if the consignment value of the goods is less than £135 (€150), VAT is paid in EU (Italy) and there should be no additional customs duty or carrier charge for brokerage, unless they impose a handling charge, but that should be small.
    If the consignment value is greater than £135, VAT should not be charged in EU (Italy) and should be paid on the cost of goods, shipping charges, plus customs duty, at 20% import VAT with a carrier brokerage fee of between £8 - £12.
    The customs duty is not easy to calculate if needed, but the UK Government provide a commodity code look-up at:
    https://www.gov.uk/trade-tariff . If you search there is a Motorcycle commodity code that can be expanded depending on the precise parts: https://www.trade-tariff.service.gov.uk/headings/8714 .
    Importantly, customs charges should not be applied to products of EU origin, due to the ‘rules of origin’ agreement between the UK and the EU. This means that orders are customs duty exempt if products have been largely produced and manufactured in the EU, and the seller can help by making this declaration clearly on the invoice.
    https://www.gov.uk/guidance/general...your-products-for-trade-between-the-uk-and-eu .
    So, if you wish to buy from an EU supplier, who is prepared to export to the UK, and you know the necessary additional charges, goods may still be purchased from the EU countries. However, if the goods are over the £135/€150 limit, it is advisable to ask the supplier not to apply local VAT to the order, and to declare manufacture in the EU, to minimise total costs payable when the goods arrive in the UK.
    Another option, would be to separate the purchases into parts bought separately, if the consignment cost of each can be kept below the €150 limit.
    I'm sorry if this is long-winded, but it is not straightforward, and its easy to incur charges that should not be made if you exercise care. Also, the carrier charge estimates cannot always be relied on, and should always be checked before payment is made.
    This Which link is quite informative: https://www.which.co.uk/consumer-ri...ay-vat-import-and-handling-costs-ajPOC6A5brEA .
    If you know about this already, I apologise in advance for taking-up your time.
    However, if you decide to buy from an EU supplier, I hope this helps.
    My advice is to make sure that the supplier clearly states the currency, removes the local VAT from the invoice, states the origin of the goods, and the carrier uses the correct UK VAT and duty charges; which is not always the case, so be prepared to check and challenge.
    Good luck.
    Tom.
     
    #13 RTD, May 17, 2022
    Last edited: May 17, 2022
    • Thanks Thanks x 1
  13. No, you will be shafted & either pay the import duty & postage costs on top of whatever you've already paid. Or the item will be returned if not done by a certain date, it's personal responsibility too pay the queen & ultra-rich more money because you want foreign stuffage.
     
  14. If the bloody exhaust doesn’t arrive sharpish it’s going back regardless. I’ve got my bike sat in a garage in bits waiting for the exhaust. Apparently I can return it until the 20th May. That says to me (it was meant to be here by the 6th) I’ve got every right to return it. How I can ‘return’ an item I’ve not actually received I don’t know - equally I don’t know how to start this action through eBay. They’ve got until tomorrow - and I’m expecting a fight over this. Shame really, I still want the exhaust. I’ll be getting one via UK suppliers I’d guess.
     
  15. If the estimated delivery date has passed then you should be able to select ‘I didn’t receive it’ next to the item, and from there you can ask for a refund. I think eBay give the seller a few days to respond before you can then ask them to step in. Worked for me recently when I tried to purchase something from a UK seller who provided a tracking number but nothing else.

    edit to add: in this scenario, where the seller has presumably actually sent the exhaust, then they should be able to instruct the delivery company to return directly to them, rather than attempting delivery - that is if the same company (eg UPS) is handling the parcel end to end. If one company is handling the parcel while it is in the EU and another while it is in the UK then that might not be possible.
     
    #16 Jamessd, May 18, 2022
    Last edited: May 18, 2022
  16. Don’t want to rub salt in the wound but mine arrived today. Italy > Lincolnshire > Dorset in 8 days, pretty good that.

    What I can’t believe is if you ordered from a company rather than an individual, why would they use standard snail mail and not an international courier, unless that was an option to you and you chose the cheapest?
     
Do Not Sell My Personal Information