Question About Uk Import Vat

[2airtoon20]

Recently bought a Nakaya from Classic Fountain Pens (US) and paid around 150 pounds in VAT. However, i was disappointed with the pen and want to return it and exchange it for a different pen (Visconti Northern Lights). Would this be exempt from import VAT or would I have to pay the VAT again? 20% on a pen this expensive is just too much for me and I wouldn't be willing to do it again ... Tell me what you guys think about this. Thanks!

 

Sung

[northlodge]

in my experience if customs pick up on anything being shipped in they will want their pound of flesh. trying to then claim that charge back is near impossible.

 

Imports are not always picked up, but packages from the US or Canada are rarely overlooked.

 

The best you could do would be to get the supplier to send the second item at negligible value, on the basis it is an exchange rather than a purchase. They may or may not agreee

[barriep]

You will have to pay the VAT on the new import. There is a form you can fill in to reclaim the vat on the returned pen.

[Chrissy]

I'm not so sure that Import VAT will have to be paid again. One thing is for certain: the buyer will not be liable for VAT on two pens when he has paid the correct amount on the pen 1 then returned it to the sender and had a replacement. If he ends up with one pen (pen 2) then one pen (pen 2) is what VAT needs to be paid on.

 

Here are the facts as I understand them: The buyer has paid £X plus VAT to import a pen. If he returns that pen, for any reason, and the seller substitutes it for a different pen that costs no more than £X, and sends that to the buyer as a "free replacement for his returned pen" then VAT has been paid on that pen value and the buyer still has one pen that has had VAT paid on, so he doesn't owe any more VAT.

 

If the replacement pen (pen 2) costs more than £X then the seller has to show the difference on the Customs form. Import VAT would therefore apply on that difference.

 

Option two will be that the buyer reclaims the VAT paid on pen 1 when he returns it to the seller, then he will pay VAT on pen 2 when it comes into the UK. No way is that impossible.

 

One more technicality is that C&E charge import VAT on the shipping cost as well as the item cost. Buyer will definitely be due a refund on one of those amounts if he ends up paying VAT on two shipping costs.

 

I once bought a Coach bag from the US and had to return it when the stitching came undone. Coach sent me a brand new bag. C&E tried to charge me VAT on the replacement bag, but they didn't get it when I appealed against it.

[ralfstc]

I've had decent luck with noting on the customs form something like "Replacement pen- No cost to recipient" or "Repaired pen being returned" when that is the case.

 

Of course UK customs are the most aggressive in the world, in my experience!

 

Ralf

[northlodge]

the other hefty charge can be the carrier charge. Royal Mail and others charge for "advising of and collecting the vat/customs fee". Last time I paid this it was about £10, but I recall one carrier once charging £22.

I suspect this is none recoverable.

[Chrissy]

I've never had any extra carrier charge added by either DHL or FedEx. I have no idea if or what Parcel Farce charge.

 

I also suspect that extra charge paid to Royal Mail would be non-recoverable though.

 

I bet that "free replacement for damaged return" on the Customs Form would get through.

 

"Repaired pen being returned to owner" would only get through if the repair was free, or cost less than £18.

[Goudy]

As barriep mentioned, HMRC have a form (BOR 286) for claiming a refund of duty on returned goods: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/581510/bor286.pdf

 

You have to provide evidence of the return.

 

You may have to write to Royal Mail separately to get a refund of the handling charge. I did this once when I was charged import duty incorrectly. I used HMRC's confirmation of the error as proof, and Royal Mail refunded me.

[dapprman]

Recently bought a Nakaya from Classic Fountain Pens (US) and paid around 150 pounds in VAT. However, i was disappointed with the pen and want to return it and exchange it for a different pen (Visconti Northern Lights). Would this be exempt from import VAT or would I have to pay the VAT again? 20% on a pen this expensive is just too much for me and I wouldn't be willing to do it again ... Tell me what you guys think about this. Thanks!

 

Sung

 

You would as it's a new import. BTW if you're after a Nakaya - there are several European based shops that resell them - I got mine from Sakura Fountain Pen Gallery in Belgium. Also means no automatic fiddling (read screwing up) of the already expertly tuned nib.