VAT and overseas buyers - quick question

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Kerfuffle
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VAT and overseas buyers - quick question

Post by Kerfuffle »

Hi all

Does anyone know whether VAT would be applied to a watch bought by me say (in Australia) as a gift for someone in the UK where you specify the UK address for shipping. Or, would you have to have it delivered to Australia first and then send it to the UK.

Hope this makes sense. I am asking because I put a friend onto the site for a present for his nephew's 18th birthday but my friend lives here in Australia and his nephew is in the UK.
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DBR!
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Re: VAT and overseas buyers - quick question

Post by DBR! »

My first post here may help. Call in the order and they will remove the VAT. It will show on your bill but they will credit you back.
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Re: VAT and overseas buyers - quick question

Post by downer »

No way. If the ship-to address is in the UK, and you cannot provide the export documentation, the VAT will be charged.

Can you imagine the size of the loophole, if this was not the case? :)


If you ship first to Australia and then back to UK, theoretically the VAT will be charged when the goods re-enter UK. Of course, this is less likely, but the cost of the UK-AUS-UK postage would have to be considered.
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VAT and overseas buyers - quick question

Post by Nealgar »

Downer is correct, the goods must travel outside the EEC to get vat relief, if you ship to the uk you are making a uk sale and vat is due! Many companies will charge you the vat until they receive the proof of export and only then refund the money to you as a lot of people fail to export the goods correctly!
Hope that helps
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Kerfuffle
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Re: VAT and overseas buyers - quick question

Post by Kerfuffle »

Thanks guys, it is what I expected. However, it may still be worthwhile shipping to Aus and then back to the UK because the removal of VAT is probably going to be more than the cost of postage anyway.
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Re: VAT and overseas buyers - quick question

Post by DBR! »

DBR! wrote:My first post here may help. Call in the order and they will remove the VAT. It will show on your bill but they will credit you back.
I was assuming you would ship to AUS and then ship back to the UK.
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Re: VAT and overseas buyers - quick question

Post by downer »

Kerfuffle wrote:Thanks guys, it is what I expected. However, it may still be worthwhile shipping to Aus and then back to the UK because the removal of VAT is probably going to be more than the cost of postage anyway.
The risk is that you end up paying the VAT when the goods re-enter the UK. If it is declared/inspected, you will pay. It is hit and miss, but it is a risk.
Richard