Ebay And Import Charges. Useful Tip

[Tai-pan]

Just came across this piece of information on Ebay's website. Thought it might be useful to remember.  

 

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

 

Don't be afraid to buy from overseas ....

Confused by the rules and regulations - worried whether or not you will get charged VAT on overseas purchases?  Here is simplified explanation - hope it helps!

Provided your purchases are NOT Excise goods, such as cigarettes, tobacco, alcohol etc. then you are allowed to purchase items to the value of UK £36.00 to import into the UK provided the seller ticks the "gift" box on the customs form when they post it .... (as at October 2007) this means your items can come to a total of about: 

51.54 Euros

$73.00 US Dollars

$81.87 Austrailian Dollars

8591.00 Japanese Yen

for other currencies or working out other amounts go to eBay's handy currency converterhttps://pages.ebay.co.uk/services/buyandsell/currencyconverter.html

If the seller ticks the 'merchandise' box then you are only allowed UK £18 before incurring the interest of the VAT man before you will get charged VAT. 

Be warned - Parcel Force also levy a handling charge for having to collect the Customs Duty -  for example, say the VAT charge is UK £20.00, they will charge another £13.50 on top!

Edited March 29, 2014 by Tai-Pan

[Dobber]

so does that mean anything over £36 will be subject to vat/import charge...and handling fees..etc...

 

and is that from all states in the usa?

 

i had a record arrive last week from the usa,i paid $150,and it arrived quickly,and there were no extra charges of any kind?

[Steve G]

All depends what the seller puts on the export slip (the green part)…..charges are based on the value declared on that form…..

[Dobber]

is it illegal for a seller NOT to declare the true amount?

 

will most sellers declare a lower amount so to avoid the buyer incurring costs?

 

or is it just down to chance whether the record arrives, or arrives with a big bloody bill?

[Gogger]

is it illegal for a seller NOT to declare the true amount?

 

will most sellers declare a lower amount so to avoid the buyer incurring costs?

 

or is it just down to chance whether the record arrives, or arrives with a big bloody bill?

hi dobber , i would think it is illegal not to declare the true value, the bloke i used to buy off never put the true amount , but there where never any big value items so i was prepared to take that risk , it is down to chance  imo , got stung with the charges 5 times but must admit they have all been in the last 18 months  2 years , i always ask the seller if he will put lower value on the ticket , most have so far, hope this helps , john

[Dobber]

hi dobber , i would think it is illegal not to declare the true value, the bloke i used to buy off never put the true amount , but there where never any big value items so i was prepared to take that risk , it is down to chance  imo , got stung with the charges 5 times but must admit they have all been in the last 18 months  2 years , i always ask the seller if he will put lower value on the ticket , most have so far, hope this helps , john

i suppose on the lesser value items its not the end of the world,but then again we can all usually get most of the lower end items here in the uk,so im not sure its worth buying them from the states!

 

also i think on the higher value and rarer items its worth sending the seller a message before bidding that you would appriciate it if the customs was kept out of it?

 

but in the end,it puts me off buying from the states,its getting to expensive and it aint worth the 2 weeks wait for the record anymore for me.

[Chalky]

Just came across this piece of information on Ebay's website. Thought it might be useful to remember.  

 

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

 

Don't be afraid to buy from overseas ....

Confused by the rules and regulations - worried whether or not you will get charged VAT on overseas purchases?  Here is simplified explanation - hope it helps!

Provided your purchases are NOT Excise goods, such as cigarettes, tobacco, alcohol etc. then you are allowed to purchase items to the value of UK £36.00 to import into the UK provided the seller ticks the "gift" box on the customs form when they post it .... (as at October 2007) this means your items can come to a total of about: 

51.54 Euros

$73.00 US Dollars

$81.87 Austrailian Dollars

8591.00 Japanese Yen

for other currencies or working out other amounts go to eBay's handy currency converterhttps://pages.ebay.co.uk/services/buyandsell/currencyconverter.html

If the seller ticks the 'merchandise' box then you are only allowed UK £18 before incurring the interest of the VAT man before you will get charged VAT. 

Be warned - Parcel Force also levy a handling charge for having to collect the Customs Duty -  for example, say the VAT charge is UK £20.00, they will charge another £13.50 on top!

 

 

Don't forget postage is included when customs work out the value.  

[Tiberius]

https://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageTravel_ShowContent&id=HMCE_CL_000014&propertyType=document

 

From the above link  - "Gift - Goods of a non-commercial character sent by a private person to another private person without payment of any kind and intended for personal use only."

[Quinvy]

How can the authorities value a second hand record? Any "normal" person thinks these things are worthless. It's only what's in the grooves that makes us pay stupid money for them.

 

If the sellers put a low value on a big money record, who the hell would know except one of "us"?

[Tai-pan]

How can the authorities value a second hand record? Any "normal" person thinks these things are worthless. It's only what's in the grooves that makes us pay stupid money for them.

 

If the sellers put a low value on a big money record, who the hell would know except one of "us"?

 

Exactly my point. If a seller wont add value at nominal amount ($10). Then I would say unless its a super expensive piece, its often not bothering with ebay anymore. For example on a $40 record..... postage extra $13 makes $53, customs UK reads $53 as £53, like they always do, Parcel force pay the import duty £20 and add their fee on top at £14.

 

So, for a record you won on ebay for about £28 ($40)....

 

Ebay, takes £2

Paypal takes £1

US Postal service takes £8

UK Taxman takes £11

Parcelforce takes £14

 

In summary,

 

A £28 record costs you £61 !

The seller get £25

Parasites get £55 !

 

Where's the fairness in that!! 

Edited March 30, 2014 by Tai-Pan

[Hammersoul]

_{Should also point out that the £36.00 allowance is including postage and insurance,}

_{Any purchase from the States over $38 + $13 postage can be liable depending how the seller declares it.} 

 

I don`t get how customs can charge you for a service , i`.e postage wtf  .  I just been stung £32 for a order from the u.s,shipper declared $27. First and  last time cos looks like buying from the u.s might be a thing of the pass if this carries on.

[John Reed]

Theres another thing you have to take into account that I found in HMRC documentation. Even if its marked as a gift, but they believe it was a commercial transaction rather than a "true gift" you can still get hit with duty payments. I got hit when a package had gift and was under the cost threshold. To get the money back you have to prove that no payment was made by you or anyone on your behalf.

So if the seller puts on some form of stamp stating their trading name that could give the game away

Edited March 30, 2014 by John Reed

[Soulstu]

Crap! I wish I'd read this earlier. Just bought and waiting for Deon Jackson from Florida - looks like it's gonna end up costing double what I saw it for on here the other day if those extra charges are applied.

Note to self - search closer to home and buy from your Soul Source mates!

[Mike Lofthouse]

Theres another thing you have to take into account that I found in HMRC documentation. Even if its marked as a gift, but they believe it was a commercial transaction rather than a "true gift" you can still get hit with duty payments. I got hit when a package had gift and was under the cost threshold. To get the money back you have to prove that no payment was made by you or anyone on your behalf.

So if the seller puts on some form of stamp stating their trading name that could give the game away

How can you prove you didn't make a payment? Bizarre!

[Dobber]

Exactly my point. If a seller wont add value at nominal amount ($10). Then I would say unless its a super expensive piece, its often not bothering with ebay anymore. For example on a $40 record..... postage extra $13 makes $53, customs UK reads $53 as £53, like they always do, Parcel force pay the import duty £20 and add their fee on top at £14.

 

So, for a record you won on ebay for about £28 ($40)....

 

Ebay, takes £2

Paypal takes £1

US Postal service takes £8

UK Taxman takes £11

Parcelforce takes £14

 

In summary,

 

A £28 record costs you £61 !

The seller get £25

Parasites get £55 !

 

Where's the fairness in that!! 

i was bidding on a record the other night,the bids were up to $700,then i noticed the import charges section that read there may be a import charge on the final price,i then bailed out cos i didnt want a big unwanted surprize at the end...but this pointer is great advice...thanks andy.

[Guest Noggin]

I don't know about other countries but here in Norway, a single 45, well packaged, can be sent as a letter. As such, there is no customs form and no value registered. 

If this is the case in other countries, then sending records individually might well be cheaper than several together.

 

on a side note, I don't sell very often but have just received payment for a record and Paypal are witholding the funds for 21 days, even though I have 100% ebay feedback. What a rip off! They are clearly earning huge amounts by holding mine and others money.

[Labeat]

Taking into account all the above posts, what, as a breakdown can i expect to pay for a $250 record from a private dealer in America and what should we be telling that dealer in order to keep total costs to a minimum!

 

Also, as an example say, i buy a $75 record from Craig Moerer and CM writes on the green label...'used record' under the detailed description of contents with $5 being the value... this record then gets damaged in transit, do you produce evidence of having paid $75 or will it become a problem the fact it has a $5 content signed & stamped?

[Guest john s]

Taking into account all the above posts, what, as a breakdown can i expect to pay for a $250 record from a private dealer in America and what should we be telling that dealer in order to keep total costs to a minimum!

 

Also, as an example say, i buy a $75 record from Craig Moerer and CM writes on the green label...'used record' under the detailed description of contents with $5 being the value... this record then gets damaged in transit, do you produce evidence of having paid $75 or will it become a problem the fact it has a $5 content signed & stamped?

Won't be a problem with Moerer, he'll refund you if the record is damaged. Not sure how anything sent by him could get damaged though, with the packaging he uses!

[Labeat]

Won't be a problem with Moerer, he'll refund you if the record is damaged. Not sure how anything sent by him could get damaged though, with the packaging he uses!

John, i said "damaged in transit" ie; at a uk distribution centre!

Thanks

[John Reed]

Also, as an example say, i buy a $75 record from Craig Moerer and CM writes on the green label...'used record' under the detailed description of contents with $5 being the value... this record then gets damaged in transit, do you produce evidence of having paid $75 or will it become a problem the fact it has a $5 content signed & stamped?

Its not your fault if its damaged in transit, so if you paid via paypal or a Visa, you put in a claim for $75 + postal costs to the sender.  Its then the senders responsibility to them claim the value of the damaged goods back from the postal service, which is why some sellers don't like putting a low value on the docket, as this is the amount they can claim if something goes wrong. 

Edited March 2, 2015 by John Reed

[Guest john s]

John, i said "damaged in transit" ie; at a uk distribution centre!

Thanks

Yes I know.

[Guest Russell H]

If you've bought it, it isn't a gift, it's a purchase. If that's official eBay information then they're telling people to commit customs fraud.

 

I've posted about this in another thread:

 

 

Former FedEx employee here, had to deal with this on a daily basis for about eight years. Here's how it works:

 

If you're importing goods into the UK with a courier service, like FedEx, they have to be processed through UK Customs. If the items are eligible for VAT and/or duty, as the recipient (who is usually the buyer) is liable to pay those charges. Because the charges are usually (relatively) small, the courier processes the items though Customs for you and takes on the charges. They then pass those charges on to you for repayment, along with their fee for clearing the items for you rather than them being held by customs, contacting you and then you having to arrange the customs clearance yourself, possibly with an expensive broker.

 

To make it worse, the tax isn't calculated just on the value of the item, but the value of the item plus the cost of shipping, as that's what it has cost. (Bear in mind that there's no such thing as "Free shipping" - someone has paid to send it, even if it's not you). On top of that, if the sender doesn't declare the cost of shipping on their paperwork, Customs then calculate based on their own standard shipping rates, which are often higher than what was actually paid.

 

There are ways around this, but they all have issues:

 

Using the US postal service instead of an international courier means that it will probably take longer, be delivered by the Royal Mail (and their customs clearance process is governed by a completely different set of rules) and not necessarily be trackable.

 

The sender can declare the items as having no value, but this will mean that it's not covered for loss or damage en route. It will also almost certainly be stopped by UK Customs who will ask for a value (as, apart from documents, all imports need a declared value). If they ask for a value, they will also ask for proof of that value.

 

They can be declared as gifts, which are not taxable, but for customs to treat them as gifts they have to fit three criteria:

 

- Declared as gifts by sender on all paperwork

- Valued at under the gift threshold (was £35 per person, may have changed)

- Sent from an individual at a residential address to an individual at a residential address. They can't put their address as Jim-Bob's Record Shack, you can't get it delivered to you at work.

 

You can claim that the sender didn't make you aware of the charges. This works once, but after that your details are on record, including any invoices that have been written off in the past. If the invoice is for a relatively low amount (and you don't argue with or shout at the agent when you call up), they may be willing to write it off for you anyway. Or not, that's their call.

 

The only sure-fire way to 100% guarantee not being charged tax on imports is to not import things into the UK from outside the EU. Is that fair? Of course not. But as far as UK Customs are concerned, you're spending money in a foreign economy instead of ours so you need to pay them something to make up for it. Customs also don't care if they're used items or brand-new - entering the UK for the first time means they're taxable.

 

That's how it works for imports by courier. Royal Mail is different, but I've never had to use them.

[Guest Russell H]

Its not your fault if its damaged in transit, so if you paid via paypal or a Visa, you put in a claim for $75 + postal costs to the sender.  Its then the senders responsibility to them claim the value of the damaged goods back from the postal service, which is why some sellers don't like putting a low value on the docket, as this is the amount they can claim if something goes wrong. 

 

Exactly. Declare it as worth $5, you can only claim $5 back from the courier service.

 

I had a call once from someone sending over a box of financial documents. For customs purposes they were worthless, but if lost they would cost thousands of pounds worth of man-hours to replace. The only way to get them covered for the full value is to declare the full value.

[Mellorful]

It isn't just the tax that hurts, its the £8 the post office charge for administering the collection of the tax.

Just had to pay £22 for delivery, £14 is tax and £8 post office charge, the tax collection charge is disproportionate. 

Is there a way I can register with HMRC that avoids the need to pay the post office as well as the tax?

[Labeat]

Record collecting? Everyone wants a slice of the pie

[Guest Garry Huxley]

Record collecting? Everyone wants a slice of the pie

already got that, no longer on wants list

[Guest Russell H]

It isn't just the tax that hurts, its the £8 the post office charge for administering the collection of the tax.

Just had to pay £22 for delivery, £14 is tax and £8 post office charge, the tax collection charge is disproportionate. 

Is there a way I can register with HMRC that avoids the need to pay the post office as well as the tax?

 

It's not just a fee for collecting the tax, it's also a charge for brokerage - the whole process of customs clearance. You can avoid having to pay the post office/courier firm by employing your own customs broker to clear the package through for you, which means incurring their charges instead of the post office/couriers.

 

It's worse in Ireland, where the clearance charge is also taxable...

[Labeat]

It's not just a fee for collecting the tax, it's also a charge for brokerage - the whole process of customs clearance. You can avoid having to pay the post office/courier firm by employing your own customs broker to clear the package through for you, which means incurring their charges instead of the post office/couriers.

 

It's worse in Ireland, where the clearance charge is also taxable...

Russell, which, therefore, would work out cost effective to us... po/courier or hiring someone private? it all seems to get more complicated this thread.... useful reading still. Do you advise we just buy records within the uk/eu?

[Guest Russell H]

Unless you're importing a couple of £50+ records a week, it'll probably be cheaper in the long term to stick with couriers/post office.

 

Or take up a cheaper hobby, like buying mansions.

[Mellorful]

Unless you're importing a couple of £50+ records a week, it'll probably be cheaper in the long term to stick with couriers/post office.

 

Or take up a cheaper hobby, like buying mansions.

I bought 8 records last month from the USA which cost over £50 fortunately 6 of the sellers were decent and treated the record as a $5 item but had to pay 2 bills to the post office. I assume the authorities are clamping down on the value aspect, can you recommend a broker and advise how the broker process works; I want to be ready to engage their services when needed.

[John Reed]

can you recommend a broker and advise how the broker process works; I want to be ready to engage their services when needed.

I think its also known as smuggling.

[Mellorful]

I think its also known as smuggling.

I have no issue with paying the tax (see#28) it is the post office admin fee that pisses me off, I didnt ask the sellers to treat the sale as a $5 item to avoid tax and some of the US sellers add tax to the purchase price and avoids the nonesense with the post office. 

Atb

[Guest Russell H]

I bought 8 records last month from the USA which cost over £50 fortunately 6 of the sellers were decent and treated the record as a $5 item but had to pay 2 bills to the post office. I assume the authorities are clamping down on the value aspect, can you recommend a broker and advise how the broker process works; I want to be ready to engage their services when needed.

 

I never really dealt with that side of things, sorry.