ebay bike from Italy - Customs & VAT?

[Revolution]

Hi, I have read various threads but - has anyone recently bought a second hand bike from EU ? I am trying without success to calculate the possible cost in Duty and tax - its a minefield

[Jdsk]

Bought from a dealer or an individual?

Thanks

Jonathan

[Revolution]

Its a shop (VAT registered)

[Revolution]

Bought from a dealer or an individual?

Its a shop (VAT registered)

[rogerzilla]

Purchase price? eBay covers it all for you below £135. Over that, it's normal rules plus admin charges. The 20% VAT is usually the biggest part

[Revolution]

Purchase price? eBay covers it all for you below £135. Over that, it's normal rules plus admin charges. The 20% VAT is usually the biggest part

Yes - its a bike - so a little more than £135.

it seems that the Gov't import duty calculator gives 2 options -
a. Third-country duty where they add 14% and then 20% VAT on that
or b. Tariff preference - European Union where they just charge 20% VAT

in order to get option b "A tariff preference is the rate available if a free trade agreement or another arrangement is in place between the UK and an overseas country. Goods will need to comply with the rules of origin to benefit from this rate and you will need to provide evidence of compliance with your shipment."
and that depends on how much of the bike was made in different countries !!!!!! how you would be able to work that out i have no idea.
As for the VAT - I think as it will have been charged by the seller, I should be able to claim back any that is charged by the courier for HMRC but that again seems to require a whole lot of documentation. If anyone has any recent experience I would be grateful of some insight

[PH]

As for the VAT - I think as it will have been charged by the seller, I should be able to claim back any that is charged by the courier for HMRC but that again seems to require a whole lot of documentation.

There is a form for reclaiming EU VAT, I've looked at it but haven't used it, it seemed to be aimed at consumers who had bought over the counter while in the EU and were importing into the UK (Though there may be other forms for other things). Better would be for the seller not to charge it, there's no reason they should, I've only ever done UK VAT returns, but I expect they're all similar, it's simple enough to include sales exported without VAT.
Also note, that although bikes are 14%, bike parts are lower (I think 4.7%) so depending on the value, it might be cheaper to send two packages of parts, rather than a complete bike.

[st599_uk]

Purchase price? eBay covers it all for you below £135. Over that, it's normal rules plus admin charges. The 20% VAT is usually the biggest part

Yes - its a bike - so a little more than £135.

it seems that the Gov't import duty calculator gives 2 options -
a. Third-country duty where they add 14% and then 20% VAT on that
or b. Tariff preference - European Union where they just charge 20% VAT

in order to get option b "A tariff preference is the rate available if a free trade agreement or another arrangement is in place between the UK and an overseas country. Goods will need to comply with the rules of origin to benefit from this rate and you will need to provide evidence of compliance with your shipment."
and that depends on how much of the bike was made in different countries !!!!!! how you would be able to work that out i have no idea.
As for the VAT - I think as it will have been charged by the seller, I should be able to claim back any that is charged by the courier for HMRC but that again seems to require a whole lot of documentation. If anyone has any recent experience I would be grateful of some insight

You need to get the seller to sell it without VAT for immediate export, then whoever is delivering it to the UK (DHL, DPD, TNT etc.) will work out if there's a tariff due, then add that and VAT (on the price and the shipping) and charge you a fee for calculating it.

The rules of origin are a pain - to work it out you need a list of all the parts on the bike and where they were made - the seller will need to supply this. (That's the same now for taking work equipment to the EU - you get used to it).

[simonhill]

Your MP appears to be Liam Fox, arch supporter of brexit. Why not email him and ask for advice (while you continue to seek more rational advice). It's time these b******s saw the hassle that normal folk have thanks to them.

[rogerzilla]

Most bikes I buy are under £135

[sukuinage]

Your MP appears to be Liam Fox, arch supporter of brexit. Why not email him and ask for advice (while you continue to seek more rational advice). It's time these b******s saw the hassle that normal folk have thanks to them.

The rules governing VAT, i.e. that they should now be charged in the country of the purchaser, rather than that of the supplier, were changed by the EU and have nothing to do with Brexit. Coincidently they were due to be changed at the same time as the UK left, but were postponed for 6 months within the EU; this hassle is all down to the EU itself.

[PH]

Your MP appears to be Liam Fox, arch supporter of brexit. Why not email him and ask for advice (while you continue to seek more rational advice). It's time these b******s saw the hassle that normal folk have thanks to them.

The rules governing VAT, i.e. that they should now be charged in the country of the purchaser, rather than that of the supplier, were changed by the EU and have nothing to do with Brexit. Coincidently they were due to be changed at the same time as the UK left, but were postponed for 6 months within the EU; this hassle is all down to the EU itself.

While this is basically correct regarding VAT, there is a single process for all EU retailers when supplying all EU consumers and a different process for the UK. The principals of the new regulations, that the consumer pays the VAT at their local rate, is the same, but the process is completely different. The EU One Stop Shop (OSS) still has the retailer collect the VAT, though now at the rate applied at the destination rather than their own. The UK process is that VAT on consignments over £135 has to be paid in the UK after import.
Plus the question is also about Import Duty and this isn't applied in an EU to EU situation.
However you look at it, there is more hassle than there would be if we were a member of the EU.

OT - UK retailers can also join part of the EU OSS system, though it only applies to consignments under 150 Euro.

[simonhill]

Thank you PH.

The bottom line is if we were still in the EU, then the purchase would be seamless. Pay, get, no hassle.

[sukuinage]

Your MP appears to be Liam Fox, arch supporter of brexit. Why not email him and ask for advice (while you continue to seek more rational advice). It's time these b******s saw the hassle that normal folk have thanks to them.

The rules governing VAT, i.e. that they should now be charged in the country of the purchaser, rather than that of the supplier, were changed by the EU and have nothing to do with Brexit. Coincidently they were due to be changed at the same time as the UK left, but were postponed for 6 months within the EU; this hassle is all down to the EU itself.

While this is basically correct regarding VAT, there is a single process for all EU retailers when supplying all EU consumers and a different process for the UK. The principals of the new regulations, that the consumer pays the VAT at their local rate, is the same, but the process is completely different. The EU One Stop Shop (OSS) still has the retailer collect the VAT, though now at the rate applied at the destination rather than their own. The UK process is that VAT on consignments over £135 has to be paid in the UK after import.
Plus the question is also about Import Duty and this isn't applied in an EU to EU situation.
However you look at it, there is more hassle than there would be if we were a member of the EU.

OT - UK retailers can also join part of the EU OSS system, though it only applies to consignments under 150 Euro.

This is correct. I was just saying that part of the hassle regarding purchasing from the EU was caused by the EU changing the rules on VAT and this change had nothing to do with Brexit.
I didn't mention import duty as that is a hassle caused by Brexit.
I'm not sure whether distributors selling outside of the EU can now remove VAT from those sales?
Maybe, at some point, the UK will abolish VAT as that was an EU (or maybe EEC at the time) requirement?

[st599_uk]

The requirement for a 3rd country purchase to have VAT and import duty applied on import and the amount owed being related to rules of origin is directly and solely caused by Brexit.