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Ebay Oversea Purchase Import Duty VAT
5 Answers
I'm thinking of buying a computer item on Ebay from Hong Kong value approx. 49 dollars but I'm unsure if there is import duty or VAT added to the item once it reaches the UK. How do I find this out?
Has anyone had experience purchasing items from Hong Kong?
Has anyone had experience purchasing items from Hong Kong?
Answers
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It's not clear whether the price quoted is in US dollars or Hong Kong dollars. It makes a difference, as I'll try to explain:
Import duty varies greatly between different electronic items. For instance, there's no duty on computers, 4.9% duty on webcams and up to 14% duty on camcorders. However, import duty is almost certainly irrelevant in your case anyway, because the duty is waived if it comes to less than �7. US$49 is about �26. HK$49 is about �3.35. In either case, even the highest rates of duty won't bring the amount up to �7, so there's no duty to pay.
The next thing to consider is VAT (at 17.5%). VAT is only charged if the value of the goods is over �18. So, if the value is HK$49, there will be no VAT to pay but if the value is US$49 then VAT will be charged at 17.5% of (about) �26. This is approximately �4.50.
Lastly, there is a fee, payable to Royal Mail, for carrying out the customs examination of the package. This fee is waived if there is no duty or VAT to pay. Otherwise it's �8.
So, if the value is HK$49, the sums add up as follows:
Duty = �0. VAT = �0. Fee = �0. Total = �0
If, however, the value is US$49, the sums become these:
Duty = �0. VAT = Approx �4.50. Fee = �8. Total = Approx �12.50.
Any item which doesn't carry a CN22 customs delaration, or where HMRC believe that the information on the declaration has been falsified, is liable to seizure by HMRC.
Chris
Import duty varies greatly between different electronic items. For instance, there's no duty on computers, 4.9% duty on webcams and up to 14% duty on camcorders. However, import duty is almost certainly irrelevant in your case anyway, because the duty is waived if it comes to less than �7. US$49 is about �26. HK$49 is about �3.35. In either case, even the highest rates of duty won't bring the amount up to �7, so there's no duty to pay.
The next thing to consider is VAT (at 17.5%). VAT is only charged if the value of the goods is over �18. So, if the value is HK$49, there will be no VAT to pay but if the value is US$49 then VAT will be charged at 17.5% of (about) �26. This is approximately �4.50.
Lastly, there is a fee, payable to Royal Mail, for carrying out the customs examination of the package. This fee is waived if there is no duty or VAT to pay. Otherwise it's �8.
So, if the value is HK$49, the sums add up as follows:
Duty = �0. VAT = �0. Fee = �0. Total = �0
If, however, the value is US$49, the sums become these:
Duty = �0. VAT = Approx �4.50. Fee = �8. Total = Approx �12.50.
Any item which doesn't carry a CN22 customs delaration, or where HMRC believe that the information on the declaration has been falsified, is liable to seizure by HMRC.
Chris
On imports into the UK duty, etc, is payable where appropriate regardless of whether it's a gift or not.
If you are sending TO an overseas country then it varies - some have a gift allowance in excess of the commercial goods allowance, some do not.
'Gift' is never a magical way of getting out of paying duty, despite the fond beliefs of many.
If you are sending TO an overseas country then it varies - some have a gift allowance in excess of the commercial goods allowance, some do not.
'Gift' is never a magical way of getting out of paying duty, despite the fond beliefs of many.
Having looked at the HMCE website a little more closely there is a slightly higher exemption limit for gifts coming into the UK than commercial goods
http://customs.hmrc.gov.uk/channelsPortalWebAp p/channelsPortalWebApp.portal?_nfpb=true&_page Label=pageVAT_FAQs&propertyType=document&colum ns=1&id=HMCE_PROD_008566#P18_1844
has the details
http://customs.hmrc.gov.uk/channelsPortalWebAp p/channelsPortalWebApp.portal?_nfpb=true&_page Label=pageVAT_FAQs&propertyType=document&colum ns=1&id=HMCE_PROD_008566#P18_1844
has the details
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