VAT and Duty on importing secondhand goods?

Posted by: Paul Hutchings on 31 July 2005

If I purchased a used laptop from the US, am I liable for VAT?

If so, how do they apply it? I don't see they could apply it on the new price of the goods, and if the seller were to mark a ridiculously low price, or mark it as a gift, how are HMCE likely to prove otherwise?

OK this is a private sale but I've never got my head around how Uncle George who lives overseas can sent you a gift yet you as the "innocent" recipient have to pay for the privelege of being sent it?

Paul
Posted on: 31 July 2005 by Steve Bull
quote:
Originally posted by Paul Hutchings:
If I purchased a used laptop from the US, am I liable for VAT?

Yep, VAT and duty if applicable. Your local friendly (really!) HMCE office will be able to give you an idea of what the rate of duty is.

quote:
If so, how do they apply it? I don't see they could apply it on the new price of the goods, and if the seller were to mark a ridiculously low price, or mark it as a gift, how are HMCE likely to prove otherwise?

Well, they have the right to open the package, assess the value of the contents and the charge duty and VAT accordingly. They're not stupid so if something the size and weight of a laptop comes through with a value marked at £2.50 they may think something is amiss and investigate further. On the other hand, you may get away with it. NB: this is not an endorsement.

Steve.
Posted on: 31 July 2005 by Derek Wright
HM Revenue and Customs web site

and you may get taxed on the shipping cost as well

if it is a US laptop it will most likely have a US keyboard - no £ key - but that can be overcome <g>