Evading VAT and Import Duty

I recently responded to a post that mentioned avoiding VAT and import duty on goods ordered from China by saying HMRC are tightening up on this.

I've been contacted to tell me that HMRC aren't just looking at Chinese companies, they are actively soliciting reports of any instances of people in the UK who are trying to avoid these taxes.

There is a value limit above which these taxes are payable and finding ways to avoid paying them is apparently tax evasion not tax avoidance and therefore illegal.

www.gov.uk/goods-sent-from-abroad/tax-and-duty

Clearly we can't be seen to be promoting such action so in future please do NOT make postings recommending trying to do this and be aware that it is increasingly likely that high value goods from China will come with a bill for the tax plus an administrative surcharge.

In line with our T&Cs any future posts doing this will be deleted without warning.

Thanks for understanding the situation.

Neil

Perhaps you could send ' them ' a copy of The Paradise Papers, incognito of course.

Putting a billion pounds in overseas investments is avoidance, getting a false value on you parcel to save £50 is evasion... it isn't me who sets the rules!

Neil

VAT is a EU tax, when the UK has left the EU it should no longer apply to UK citizens. Niko.

Rubbish. Most countries around the world have added value tax or similar names. It used to be called purchase tax until it was renamed vat. If we stopped charging vat, we'd have to take it somewhere else. More magical thinking!

Murray

I've just noticed that Neil's link lands on the second page 'Tax and duty'

May I just mention that the 'Overview' page is essential reading: **LINK**

https://www.gov.uk/goods-sent-from-abroad

.

For most of us: This might turn-out to be the 'catch' ...

[edited quote]

You must also check that the sender:

• declares goods correctly if they’re sent from outside the EU

Your goods may be seized if you don’t follow the rules. You may also be fined or prosecuted.

[/quote]

Yes folks ... 'You' and 'Your' in that statement really do mean You the customer, and Your imported goods.

The one small comfort is that little phrase 'You may'

Be really afraid when they update it to read 'You will' or 'You shall'

MichaelG.

If you have to pay VAT on any imported goods over 15 squids in value as it says in the link, it's pretty hard to argue most ME related purchases of any substance are worth less than that. Seems silly to even try.

Guess we are lucky here in Oz. Anything up to $1,000 comes in tax and duty free. They were going to change it and add the 10 per cent sales tax but worked out the cost of administering it all would be more than the revenue raised. How it could cost more than $100 to send someone a bill for $100 and then receive their money is something only the government could work out. I'm certainly not complaining!

So if we have our goods broken down into £15 lots we aren't liable for VAT and it won't be tax evasion!

I am VAT registered so it is galling when our dear post office charge me £8 to charge me the VAT which I will be reclaiming.

I got a shipment of 20 boxes a few years back which somehow or other got picked up by Parcel force. They did 20 invoices so they could charge me 20 x £10 for collecting the VAT. I was not amused.

Some punter in the US of A sent me a £7.50 repair and valued it at £200. The post office rubbed their hands in glee and zapped me for duty and tax as well as their little bonus. I refused it so they had to send it all the way back for nothing.

As for shopping in the UK it is amazing how many people claim to be VAT registered but can't seem to send me a VAT receipt. I have a little list for next time I get VAT inspected

.

True ... provided they are genuine individual purchases.

Incidentally; it's worth mentioning that the threshold is on the Purchase Price [as converted to UK£ by HMRC at the instant of importation], but the VAT is also applied to the shipping costs.

I know this to my great chagrin, having been hit for substantial charges on an item that at at the time of ordering was just under £15 ... but the US$ exchange rate changed whilst it was in transit and on arrival it was 'worth' just over £15

MichaelG.

What if you've swapped a milling machine with a worthless digital token?

Martin.

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Here's some bedtime reading for you: **LINK**

https://www.gov.uk/government/publications/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies/revenue-and-customs-brief-9-2014-bitcoin-and-other-cryptocurrencies

MichaelG.

I don't see mention of Nectar points there.

Martin.

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I know you'e kidding, but: Even if you manage to purchase with Nectar points, or you pay nothing at all; the seller/donor still needs to declare a value on the Customs form and, as I noted above, HMRC considers it your responsibility to ensure that the stated value is accurate. ...

HMRC works in GB£ and will determine the exchange rate at the moment of entry.

MichaelG.

So when someone in Brazil asks me to value it at US$10 and declare it as sporting goods on the CN22 that is okay because it is his responsibility? I like it.

.

Robin,

So far as I am aware this thread is exclusively about importing goods into the UK

... I'm quite sure you understand the regulations about exporting.

MichaelG.

Edited By Michael Gilligan on 10/12/2017 09:39:00

I can dream about bending the rules but it's all pie in the sky. The goblins in my head insist I keep to the straight and narrow if I want to sleep at night

Can we make a counter claim for extortion when we are charged £8 by Royal Mail for collecting less than £10 of VAT? I say extortion because given the time to read the declaration, enter the value into a computer, print the tax demand sticker and affix it to the item is less then 20 seconds, equating to £1440 per hour of revenue, or £3m per annum for one operative.

If a vendor correctly declares the value on the parcel and no one charges for it at the time is there a time limit beyond which an invoice for VAT and duty cannot be raised?