Customs charges from Europe?

[blessedrelease]

I'm trying to buy a gift for my boyfriend who lives in Wales. I will be paying with his HSBC card, but the company I'm buying from seems to be located in Italy. The price they've given is "VAT excluded" and but when I go to checkout it says I.V.A. 4

Comments

[austengirl]

As long as it's staying within the EU, I don't believe it's subject to the same customs duty that items sent from the US to the UK are. However, if it were sent to you in the states (I'm presuming that's where you are) then you sent it to him in Wales, then it's likely to incur a customs charge. You're best of having a look around the government's customs and revenue site to be sure though.

Is there not a UK source for the item you're buying? And if you're concerned about VAT being included, I'd email the company before completing the purchase.

[lil_shepherd]

There are no customs charges between EU countries.

The rules have changed recently, but I believe that if you pay VAT in the country of export within the EU, you don't have to pay it again elsewhere. On the surface it would seem that if you pay the Italian VAT, you won't have to pay UK VAT.

However, as you are yourself outside the EC, the matter might be a bit more complicated. HMRC have this really good website which you might want to check.

To add: from your point of view it is much preferable to pay the Italian VAT (apparently at 4%) than UK VAT at 17.5%. However, if this present is a book, for instance, then this is zero rated in the UK. Best check.

http://www.hmrc.gov.uk/customs/tax-and-duty.htm#3

[_nicolai_]

If the goods are sent from one EU country to another, value added or sales tax is payable at the rate prevailing in the sending country. Once paid, the goods are in free circulation in the EU so no further taxes or duties are payable on the items (there are a few exceptions to do with some items from new entrants to the EU, but between Italy and the UK this is not an issue). For payment purposes, the purchase will be considered to be in the UK because that is where the card is registered.

Not every country in the world requires honesty of its retailers, so you the Italians may have shown you a price excluding a tax you cannot avoid paying. 4% VAT is quite low by European standards!

[eofs]

The 4% must be their low-level tax due to the nature of the product. The EU stipulates a minimum 15% VAT.

[belle_marmotte]

Nothing really useful to add, except that I find it funny you're buying him a gift using his card to pay for it!!!

Way to go girl!