Richard_H said:
I have a contact now at the commodity codes office - after Border Force were next to useless. I've asked them that and many other questions.
For example, imagine that Iain Sanderson (
) sent me a MOC valued at £1000+ for free and as a gift. Do I pay 20% VAT on it? What about if he wants to send me a cheque for £1000?
The gift limit is £34. Any more than this and you're charged duty and VAT in the normal way.
There is no charge or currency, I believe, but you could be subject to tax for unearned income if the circumstances dictated (frequency and size of gift).
Apologies if already linked but the full guide is here:
https://www.gov.uk/government/publications/notice-143-a-guide-for-international-post-users/notice-143-a-guide-for-international-post-users
And an edited summary of what to expect (assuming the commodity code disappears):
3. Charges
3.1 How are import charges calculated?
Customs Duty - becomes payable if the goods are over £135 in value but is waived if the amount, when calculated is less than £7.
The amount of Customs Duty charged will depend on the type of goods imported and the value stated on the customs declaration CN22/CN23 (converted to £sterling using the rates of exchange for the month of importation as shown on the HMRC website).
The percentage varies depending on the type of goods and their country of origin. Duty is charged on:
the price paid for the goods
+
any local sales taxes
+
postage, packing and insurance
However, the cost of postage is excluded from the calculation for Customs Duty on gifts
except where the sender has used the Express Mail Service (EMS) as opposed to a standard mail service.
Where the value of gifts is below £630 per consignment, a flat rate of duty of 2.5% will be applied, but only if it is to your advantage (this is DUTY, not VAT, which is still applied at the usual 20%)
Excise Duty - Booze, fags and perfume so doesn't apply to SW....
Value Added Tax (VAT) -Imported goods over £15 in value, and on gifts that are over £34 in value. The value of the goods for import VAT is based on the:
basic value of goods
+
postage, packing and insurance
+
any import (Customs or Excise) duties charged
NOTICE THE SUBTLE DIFFERENCE: For Excise duty it's "price paid for the goods" whereas for VAT it's "basic value of goods". I'm trying to think how this could be argued in out favour, but can't think. Could you argue that the Trilogo YAk with his £1.59 sticker is only valued at that?
I somehow doubt it...
As with Customs Duty, the cost of postage is excluded from the calculation for VAT on gifts
except where the sender has used the Express Mail Service (EMS) as opposed to a standard mail service.
