Buying from EU (Italy)

[Brian45]

Hi guys, hope one and all are all well. Just wondered if anyone can offer me some advice, as since Brexit I haven’t brought anything major directly from the EU..

looking to buy a audio interface with some software from Italy. It’s currently on offer at €350. Am i right in thinking it will be subject to import Vat (20%) plus import duty and then the courier handling fee?
Trying to work out what the final cost maybe, to see if it’s such a good deal? Many thanks 

 

[BigRedX]

The rule of thumb is to add 25% to the price of the item plus shipping cost and then an additional £15 to cover import duty handling fees. If you are still making a significant saving (or it is an item you can’t get in the UK) then it is worth it. 

[Brian45]

Many thanks Big Red 👍

[warwickhunt]

Yes, 25% is a good ball park.  I've just had the very same discussion re a simple 'swap' of basses with a guy in Europe.  I pointed out that we'd both have to pay for shipping and budget to pay our respective governments approx 25%, despite the items being used, with tax paid when new and neither of us actually 'selling' an item for money.  

[Woodwind]

As an extra word of (perhaps unnecessary) caution, it may also be worth investigating what the customs and timescale implications are if you ever need to send something back for warranty etc

 

 

[Velarian]

If you’re buying from an Italian retailer make sure they’re not charging local VAT in their price otherwise you effectively pay VAT twice (including UK VAT on the Italian VAT!). As they’re exporting the item no local VAT should be payable.

 

Mrs V got caught out with this buying something from Germany. Brexit aware retailers (like Thomann) have arrangements to pay UK VAT etc., and the price you see on their website is exactly what you pay in GBP. 

[BigRedX]

There shouldn't be any customs implications for a warranty return, although there is a load of additional paperwork, and you may have to pay VAT and duties upfront and then claim them back. That's why in my previous post I said it's only worth it if there a substantial savings over buying the same item from a proper UK source or if it is something you can't get without importing.

[warwickhunt]

14 minutes ago, Velarian said:

If you’re buying from an Italian retailer make sure they’re not charging local VAT in their price otherwise you effectively pay VAT twice (including UK VAT on the Italian VAT!). As they’re exporting the item no local VAT should be payable.

 

Mrs V got caught out with this buying something from Germany. Brexit aware retailers (like Thomann) have arrangements to pay UK VAT etc., and the price you see on their website is exactly what you pay in GBP. 

 

Which raises an interesting point... if a EU person buys an item, they pay their VAT (or equivalent), if they then sell that to the UK (who will charge VAT on a used/2nd hand item), can the original owner claim local/EU VAT back?  

[Velarian]

2 minutes ago, warwickhunt said:

 

Which raises an interesting point... if a EU person buys an item, they pay their VAT (or equivalent), if they then sell that to the UK (who will charge VAT on a used/2nd hand item), can the original owner claim local/EU VAT back?  

A very good point which illustrates how ridiculous it is to pay VAT on secondhand goods, especially when buyer and seller are not businesses registered for VAT. 

[Guest]

Basically most things seem to require taxation. Just about everything purchased new is taxable. We can’t be charged tax again when selling privately in the same country (although businesses pay tax on the profit), but if it goes to another country, they haven’t yet charged anyone for it, so they do. Same applies with capital gains tax and inheritance tax, just another way to get income when money changes hands. Death and taxes, and all that…