Whats the deal with VAT and jackets into the US from abroad

[jhl1963]

Anything I've ever bought overseas (I'm in the US) has been shipped to me without VAT, what should I expect with the Jacket MFG? Seems to be otherwise? Thanks in advance.

 

[Jägernaut]

I believe vat is a European bane. We only have to pay duties here I think.

 

[Peacoat]

This has been a controversial topic on the Lounge in the past. Basically it appears the VAT is included in the price of the jacket. When the jacket is sold to a purchaser outside of the UK, the jacket price is not reduced. The reason for this non reduction of the VAT has been explained, but not always to the satisfaction of the forum members. This isn't a topic we need to revisit.

 

[Feraud]

This has been a much discussed topic in the past. I'm sure a search can yield answers to the question.

 

[jhl1963]

I had searched before posting but couldn't find anything. Based on the above I think I can read between the lines- thanks.

 

[Justhandguns]

It is really down to the companies themselves. Almost all prices listed on the UK websites include the current 20% VAT unless it is stated, which is slightly different from the usual practice in the US. Few popular UK companies DO NOT deduct the VAT when they ship overseas while offering discounts on their postage and packaging. I think Eastman is doing that. The best way is to phone them up or email them before you place your order.

 

[nick123]

Yes, are you sure you're not referring to customs duties? (what you pay when you receive it). The VAT is included in the price I think so that wouldn't be an unexpected charge.

 

[jon11]

j

 

[jon11]

just bought one from the US to UK we pay Customs duty and VAT on the total price the jacket is declared at plus what it costs to ship her will also be taken into account. So can be sizable depending on the price of the jacket. The US may be different the other way.

 

[Lord Flashheart]

As a matter of interest, when a UK manufacturer does not ship overseas duty free does the duty become pure profit on top of whatever Mark up they have on the item? Also, does the material the jacket is made of make any differance at the UK end when it comes to taxes charged?

Regards

Garry

 

[Mark Ricketts]

How the different manufacturers deal with VAT, which is not levied by the taxman if the order leaves the EU, separates the gentlemen from the businessmen.

 

[AdeeC]

Here in Australia we only pay customs duty, tax and customs fees only on value including shipping of over $AU1000. Which adds about $250 to something costing one dollar above $AU1000. Under a $1000 we pay no taxes or duties. If some of those manufacturers did not add the silent VAT it would place the landed value to well under $AU1000 on many jackets. It has certainly prevented me from buying several jackets I desire. In practice a jacket costing me $AU1001 means I will have to pay over $400 extra in VAT, local taxes, duties and fees.

 

[GHT]

As a matter of interest, when a UK manufacturer does not ship overseas duty free does the duty become pure profit on top of whatever Mark up they have on the item? Also, does the material the jacket is made of make any differance at the UK end when it comes to taxes charged?

Regards

Garry

Different materials make no difference, are you thinking in terms of an animal skin as opposed to a woven material garment? As for an invisible mark up, it depends: Check your invoice, if it the VAT is itemised, then the VAT will go into the UK exchequer, if it's not itemised, who knows?
For what it's worth, VAT should not be charged to countries outside the EU. It's usually charged to due ignorance on the part of the vendor who might be worried that he could fall foul of the taxman.

 

[Doctor Damage]

For what it's worth, VAT should not be charged to countries outside the EU. It's usually charged to due ignorance on the part of the vendor who might be worried that he could fall foul of the taxman.

In any case, if you have the paperwork and proof of payment and you are from outside the EU, then you should be able to get the VAT back later by applying to the appropriate authority. Who that is, I have no idea.

 

[GHT]

The UK government website gives the answer to VAT repayments for foreigners:
https://www.gov.uk/tax-on-shopping/taxfree-shopping
Don't get too excited, scroll down to the list the you can't claim VAT back on. First up:
Mail order goods, including internet sales

 

[Mark Ricketts]

Claiming VAT back is more a theory than an actuality. My favourite is when I was asked to provide original receipts, which were then promptly lost by the taxman, who then would not refund the VAT as I could not provide original receipts. The moral is always ask for receipts in triplicate if you are going to attempt a reclaim.

 

[Edward]

There is a desk at Heathrow where non-EU tourists can queue up with their shopping receipts to claim back the VAT on their UK purchases. Usually seems to be mostly Chinese tourists queued outside (though that may be just a conicidence based on the vast majority of my long haul flights being to and from Beijing, via the terminal where all the Chinese traffic goes). If you plan to do that, well worth allowing an extra couple of hours at the airport.

The issue of VAT on jackets being exported from the UK was kicked around extensively here a couple of years ago; I'm sure the thread is still there. The upshot is that some companies deduct the VAT amount from the prices shown on the site, while others do not. One company which came under criticism for the latter made its case that they charge one, internationally based price and effectively eat the profit-cut by not charging VAT on top to the (relatively small) proportion of their customer base which resides in the UK. Naturally, some posters accepted this argument, others objected. All comes down to personal preference in the end. It's a completely different set up than in the US here - I always get a bit thrown by the US system, where I absent mindedly think I know what I'm going to pay when I get to the counter, then it turns out to be a chunk more because sales tax (your equivalent of our Value Added Tax) is only added at the til, rather than an all-inclusive price on the shelf being the norm. Back in the 90s, in order to stimulate the growth of ecommerce, the US passed a law, as I recall, which eliminated sales tax on items bought across state lines via the internet. There's no equivalent of this in the UK (if anything, these days I think the argument here would be to tax online purchases more siginifcantly, as the web has put an awful lot of high street outlets, even big name chain stores, out of business).

Tax at point of entry will vary from state to state. In the UK, we pay no import taxes at all for any item which is sourced within the EU. Anything bought from outside that however, is a very different story. Over the minimum threshhold (which last I looked was still as low as GBP16 for mail order), you end up paying roughly 25% of the total declared value including what it cost to ship to the UK. Of course all import taxes are designed to protect the local economy, though it's rather frustrating nonetheless as 99% of the time the reason one orders from abroad is down to the lack of an equivalent item being available locally.

 

[Blackadder]

Import duties are different from the sales tax. Import duties protect the local sales from foreign competition whilst refusal to refund sales tax hurts your export sales. It does not show when the exchange rate was favourable but with the yen coming down, I am sure European manufacturers are losing international business to the Japanese. I for one have bought 3 leather jackets from European manufacturers 3 from American but none from Japanese in 2013 but in 2014 I bought 6 leather jackets from Japanese and none from the European or the American. I still buy other goods from America and Europe but those goods are tax free.

 

[Justhandguns]

There is a desk at Heathrow where non-EU tourists can queue up with their shopping receipts to claim back the VAT on their UK purchases. Usually seems to be mostly Chinese tourists queued outside (though that may be just a coincidence based on the vast majority of my long haul flights being to and from Beijing, via the terminal where all the Chinese traffic goes). If you plan to do that, well worth allowing an extra couple of hours at the airport.

Well, there is no coincidence, we all know that Chinese tourists are the lead spending power in the world right now, just surpassing the Americans in 2014.
Another piece of information for us Brits, even if you are an EU passport holder, and if so happen that you reside outside of the EU, and if you are not staying in EU for no longer than 3 months, congratulations! You are eligible to claim your VAT back by showing your return to home tickets.

Tax at point of entry will vary from state to state. In the UK, we pay no import taxes at all for any item which is sourced within the EU. Anything bought from outside that however, is a very different story. Over the minimum threshhold (which last I looked was still as low as GBP16 for mail order), you end up paying roughly 25% of the total declared value including what it cost to ship to the UK. Of course all import taxes are designed to protect the local economy, though it's rather frustrating nonetheless as 99% of the time the reason one orders from abroad is down to the lack of an equivalent item being available locally.

(Tough wood....) I have never been checked for item declarations at Heathrow nor at Gatwick. Maybe I do not look like the type who smuggle loads of expensive stuffs for sale back home.

I do not object the idea of charging for custom duty or VAT, since sales tax is still one of the fairer kind of tax forms where everybody pays their share no matter you are rich or poor. But setting a threshold of 16quids with 10quids of admin charge on top is just ridiculous. The "protected" local retailers are also not helping out over the years, over the years, how many times we see them just replacing the dollar sign with the pound sign on their products? The lack of competitions here in this country is scary, and there is no anti-monopoly law in place as well. I guess we can only blame the politicians then (they themselves are also businessmen unfortunately).

 

[tonypaj]

I agree with Edward here. To simplify things, if an EU based company sells to someone in a non-EU country, it is not required by law to add the VAT to the price of the product. If it sells to someone within the EU, the VAT of the country where the company is based is required to be added to the price, however not the VAT of the country of the recipient.

Customs fees etc. are for the buyer to pay.