Discussions on Tax, Grey Imports and other assorted topics

[Admin #1]

There will be a sticky coming soon that will cover all aspects of:
Importing generally
Grey imports
Tax and Duty Implications
Your responsibilities as an importer

Any and all discussions on the above topics will be contained in the one thread. It will NOT be acceptable to drag EVERY thread on buying from non-eu countries into the same discussions.

 

[Admin #1]

This sticky is meant as information only.

FAQ
I want to buy a lens but I need to save some money, but what is Grey Import?
A grey import is a purchase made from a retailer who isn’t part of the official supply chain for your country or region. This retailer often sells the product at a cheaper rate than the local distributers, making an eye-catching deal for the money conscious buyer.

What are the Disadvantages of buying Grey?
Grey Imports often come from far outside the region that the buyer lives in. This can often mean that the purchase isn’t covered by local warranty or extended warranty, which could mean a very expensive repair bill should anything go wrong
the item may not come with region specific power supply
some countries take out some of things we expect to find and sell them separately, such as manuals, software etc
the item may not have VAT included in the price, which could mean a big bill at the time of arrival
the item could get lost in transit from its place of origin
items may not have been stored in the right way
items change hands a few times before they reach the retailer

I dont mind buying Grey, what about the VAT that I will take out of the hands of the squandering Quangos at local and national government level?
it is the legal responsibility of the importing person(or the buyer for the simple minded folk)to declare the import and pay whatever duty is due on the purchase

Why is my delivery marked as 'Toys' or 'Samples'
this is frowned upon by the inland revenue, its actually an offence under the Customs and Excise Management Act and any import listed in this way should be reported.

Will fluffy kittens be offed on YouTube if I don't declare the import?
no, but the importer is technically avoiding tax, which is a criminal offence.

Some companies claim that they prepay the VAT on your purchase, so none is payable. There is something in place between Hong Kong and UK called Memorandum of Understanding, this covers exports from Hong Kong to the UK, retailers in HK can apply for this and will be issued a unique number that they must put on the parcels, along with the words ‘Import VAT Prepaid’ Ask to see this number BEFORE purchasing to avoid getting an unwelcome surprise on import, as Ignorance is no defence.

Sometimes the vendors promise to pay any duty of charges. If you wish to buy from Grey resellers, declare your import and claim it back!

More info from the tax office:

4 Prepayment of import VAT on goods purchased over the internet or by mail order

HMRC has special arrangements that allow some overseas traders to charge, collect and pay over to us the import VAT for goods purchased by mail order, that would normally be chargeable at the time the goods are imported. These arrangements operate under Memoranda of Understanding (MoU) signed with certain overseas customs and postal authorities. The countries that have a MoU with HMRC are - the Channel Islands, Hong Kong, Singapore and New Zealand. Overseas traders wanting to use this procedure must be authorised to do so by their authorities.

Once authorised, foreign businesses are issued with a unique authorisation number, which they must show on the customs declaration or packaging. They will include the statement 'Import VAT Prepaid'.

Where these arrangements are used you will not be charged a Royal Mail handling fee when you receive your package.

If you are a VAT registered business and purchase goods for use in your business you should keep the outer wrapper and invoice from the supplier to support your claim to input tax.

The taxman says

If you buy goods online from outside the EU for delivery to the UK, you'll have to pay Customs Duty and Import VAT on top of the purchase price if the goods are above a certain value - though Customs Duty is waived if the amount of duty payable is £9 or less.

Some Internet sellers outside the EU have arrangements with the UK whereby you pay them the VAT that's due on the goods you're ordering. They then pay the VAT to their postal authority - which in turn pays it to HM Revenue & Customs. Note that these sellers must be authorised to do this. They'll have a special number that will be on the Customs Declaration. The declaration should also carry a message saying 'Import VAT pre-paid'. When this arrangement is used you won't be charged any import VAT or a Royal Mail handling fee when you get your parcel. Note that if the above procedures aren't followed properly you could end up losing the goods

http://www.dutycalculator.com/count...taxes-when-importing-into-the-United-Kingdom/

If you buy your new lens or camera body, or accessory in the UK, you are helping UK business and putting money in the inland revenue. Every little helps.