Importing costs

[Scuddy]

Evenin all

Can anyone sort out a conflict of information I've been given.

Its to do with import duty and VAT on vehicles brought into UK

1st school of knowledge says the import duty (10%) is added onto (FOB charge+shipping costs+insurance) and then VAT is added onto the sum of this lot.
2nd says import duty and VAT are both charged on FOB price only.

(obviously option 2 is preferable)

Over to the floor

Cheers
Scuddy

[InfraRed]

Not sure what the situation is with second hand cars but with anything else with a value greater than £18, import duty is charged on purchace price + shipping cost then VAT is charged on the arrived at total. Insurance could well be assessed as part of the shipping cost. And yes you are being taxed on tax sick isn't it.

[andy]

Option one is correct.

[ukviha]

Hi the first one is correct as you pay on shipping and insurance as well.
HOWEVER
The tax and duty is only payable on the value on the invoice ( which somehow always manages to be a lot less than you thought )
Dont go mad but you can easily knock a third off.

[Scuddy]

Thanks for that
Who 'massages the invoice'? Is it the importing agent for the price of a good curry or a bottle of Scotch?
And yes getting taxed on tax is sickening....I come from Yorkshire! By 'eck

[andy]

Hi the first one is correct as you pay on shipping and insurance as well.
HOWEVER
The tax and duty is only payable on the value on the invoice ( which somehow always manages to be a lot less than you thought )
Dont go mad but you can easily knock a third off.

The only problem with that is the customs are now asking for a copy of the bank statement from which the invoice was paid.

[ukviha]

Never had a problem doing it myself, and no bank statements have been asked for in 18 months.However it could always be paid in 2 installments.
The importer or the company purchased off would have to send 2 invoices one for the tax man and one for you!!!!!!

[andy]

Never had a problem doing it myself, and no bank statements have been asked for in 18 months.However it could always be paid in 2 installments.
The importer or the company purchased off would have to send 2 invoices one for the tax man and one for you!!!!!!

I think it all depends on the clearance agent that you use, the one that I use in Soton has asked the last couple of times, as I say they asked but didn't get it anyway.

We should have a meet up some time and have a chat.