Are Magic singles VAT exempt?

[Dan Barrett]

Just got stung with a whopping £16 customs charge for 4 cards from the US, quite pissed off as i've never had this happen before.

Does someone versed in the law (maybe Jason Savage or Ben Twitchen?) know what the deal is here, and if there are any loopholes one can use in future?

[Ben Titmarsh]

anything over £30 that isn't classed as a gift gets taxed I believe. Also had this a few times when ordering cards from America

[Michael Duke]

Hell no.. sucks balls.. the amount i fucking pay HMRC is REDICULOUS. Importing goods, items classed as purchased merchandise is exempt under £16 and a gift under £32. If its valued more, you get charge 17.5% on the purchased cost then you get charged the ((cost*17.5)+postage cost)*3.2% or something like that, basically, just multiply the total amount by 21% and it'll give u a rough idea.

But no.. far from exempt

[David Lyford-Smith]

Basically, if you're importing goods that would be VATable under UK law, then you may be liable for VAT on those purchases.

Normally VAT is collected by the seller when you buy something, and just added in to the sales price. But when you're buying from outside the EU, you have to charge yourself VAT instead.

For small items / gifts, this is usually not enforced as the cost of doing so exceeds the potential revenue.

The only way to get your VAT back on something you've purchased is to register as a supplier of VATable supplies, charge VAT on your sales, and reclaim your input VAT on your VAT return.

[Amar Dattani]

so basically when your ordering items from abroad do it through mike... :)

that is a little dishonest though ;) and im sure mike would want you to buy it from him instead - so he would have to, of course (!), handover the VAT on the sale of the cards to you to the HMRC...

David Lyford-Smith said:

Basically, if you're importing goods that would be VATable under UK law, then you may be liable for VAT on those purchases.

Normally VAT is collected by the seller when you buy something, and just added in to the sales price. But when you're buying from outside the EU, you have to charge yourself VAT instead.

For small items / gifts, this is usually not enforced as the cost of doing so exceeds the potential revenue.

The only way to get your VAT back on something you've purchased is to register as a supplier of VATable supplies, charge VAT on your sales, and reclaim your input VAT on your VAT return.

[Dan Barrett]

In short, screw the HMRC.

*shakes fist*

[Daniel Royde]

The first case I bought for drafting was for a really good price in the US. But yes, customs sucks so it's hard for things to be cheaper-> Mike ftw.

[Alan Harper]

you also need to be aware of the admin charge the PO extracts for dealing with customs fees on your behalf - its something crazy like 6-8.00 - so even if the vat payable is only 50p you can get heavily stung. Some US dealers state the full purchase price on the customs declaration and for these if its over 16 - you are likely to get billed. Swings and roundabouts...

[Jason Savage]

Hi guys,

I only just saw this thread. I suppose I should answer as I am VAT Consultant! Lol.

Cards are never exempt for VAT.

The amount for goods imported into the UK from outside the EU not subject to UK VAT is not £16, it is £18.

The amount for goods imported and sent as a gift into the UK from outside the EU not subject to UK VAT is not £32, it is now £40 and this only changed recently.

HMRC is hotting up on imported goods into the UK as they are trying to maximise the VAT collected. In short buy from Mike!!

[Dan Barrett]

I would have done, but Mike was a bit too savvy to pre-order Vengevines at £10/each!

[Gary Lynch]

Still look on the bright side, your vengvines still only cost you £14 each

Dan Barrett said:

I would have done, but Mike was a bit too savvy to pre-order Vengevines at £10/each!