Author Topic: Tax, everyones enemy (Read 5303 times)

apmaman · « **on:** January 12, 2007, 04:59:30 PM »

well as the title goes TAX!

heres my question. Any of you know te added costs that are to be added when importing a said guitar. is it the 17.5% and 3% for VAT and import duties or are there more? need reply ASAP!

anyother Tax related rants are welcome here also! :P :lol:

Antag · « **Reply #1 on:** January 12, 2007, 05:19:18 PM »

There might be a small admin charge (IIRC UPS add around £10), also a fee for the currency conversion on your credit card.

But no, there shouldn't be anything else substantial. Bear in mind that VAT goes ON TOP OF import duty & is a percentage of the cost INCLUDING the shipping fee.

Example:

guitar $2000
+ UPS $200
Convert $2200 to £ = 1144 (assuming 0.52 exchange rate)
+2.7% duty = 1174.89
+17.5% VAT = 1380.49
+UPS admin fee (say £10) = 1390.49

So you'd have to give the UPS man a cheque for £246.46

apmaman · « **Reply #2 on:** January 12, 2007, 05:37:10 PM »

ahhh thats not good...

i was thinking the tax was from the guitar only, not the shipping ontop of that...

Guitar $999 + $250 shipping = £638.19
then gay tax £130
making a total of £768... not bad a saving from a £850 UK retail

the way i thought it was would of saved me just over £190.

Thanks for the reply though!

Dakine · « **Reply #3 on:** January 12, 2007, 05:48:33 PM »

that does NOT seem like much of a saving when buying from US.
What is the guitar? Can't it be found cheaper in US to save more?

I am buying another from US v.soon but mainly cos it's a Custom Shop model thats been discontinued. The savings there (compared to UK) are MASSIVE, aka over £600! Although will probably get it sent to US house in Texas and p/u when next there to save Tax/Shipping/Duty. Still, I figured 30% is normish on top of cost to bring to UK.
So, for guitar/shipping that costs £1,000 = £300 extra.

Anyway, thought a bigger saving should be made is all. I know alot of stores in US and 'may' be able to point out a cheaper place to buy from, or maybe not.

FELINEGUITARS · « **Reply #4 on:** January 12, 2007, 06:53:31 PM »

Of course you dont have to pay VAT or duty on stuff coming in from Europe (as long as they are members of the European Union)

38thBeatle · « **Reply #5 on:** January 12, 2007, 07:19:35 PM »

I just love the way they add the VAT to the cost of the guitar plus the duty so that you pay tax on duty. I am looking to buy some stuff when I am in the USA in April-maybe not a guitar but possibly some other bits and bobs but if I can get away without paying tax or duty I will.

apmaman · « **Reply #6 on:** January 12, 2007, 07:32:20 PM »

Its an Ibanez RG 20th anniv model, and there was only 20 in the UK so i tried 2 get on here but no one was taking deposits but American stores are. I want mines in DY!!!! so i bit the bullet.

Edit:
its not a huge saving i know, but poor student means every penny is a prisoner!!

JamesHealey · « **Reply #7 on:** January 12, 2007, 08:26:00 PM »

that means when my splawn arrives i'll have to pay the UPS man according to your calculations

amp $1350
+ UPS $250
Convert $1600 to £ = 816.960 (current exchange rate on xe.com)
+2.7% duty = 839.01792
+17.5% VAT = 985.846
+UPS admin fee (say £10) = 995.846

So I have to give the UPS man a cheque for £168.88

see I was thinking it was going to be more like £230, so if thats the case i'll be extremely happy and be able to afford the bus for the rest of the month and to be able to eat, that'd be nice..

Antag · « **Reply #8 on:** January 12, 2007, 10:15:31 PM »

I'm not aware that there's been a big hike in import duty, it was certainly 2.7% when last imported a Jackson but that was around 2003.

Can't have gone up by much though, as I only had to pay UPS £149 for my last Warmoth order. IIRC that was $1260 which was around £670-680 at the time

((670 x 1.027) x 1.175) - 670 = 138.51

So the numbers roughly add up. Unless import duty on amps is a LOT more than guitars (like around 9%) I don't see how it can be as much as £230. Best check HMRC website if you want to be sure.

LazyNinja · « **Reply #9 on:** January 12, 2007, 11:32:35 PM »

it's worth noting that you don't need to pay VAT on private sales.
But the stuff you guys are talking about are obviously new, so too bad I guess.

headtheball · « **Reply #10 on:** January 13, 2007, 02:25:59 AM »

If you feel like taking a chance, Address the package to yourself, but but some kind of church's name above your address (as in, Joe Soap, c/o The Church of Blablabla, Number mystreet, mytown, county Aye right XY1 23Z)

I heard customs are somewhat loath to levy taxes on religious materials, and I do know one guy who got away with it (although, to be fair, it wasn't a guitar or amp)...

Would it be any cheaper to import via the Republic of Ireland, say through someone on here, then it could be passed to the likes of me in the north, then shunted over (cos it wouldn't be an "Import" then)?

Kilby · « **Reply #11 on:** January 13, 2007, 03:13:56 AM »

Quote from: headtheball

Would it be any cheaper to import via the Republic of Ireland, say through someone on here, then it could be passed to the likes of me in the north, then shunted over (cos it wouldn't be an "Import" then)?

Apparently you do get hit becasue you are importing into the EU (I was looking an importing idea, from US to Eastern Europe to UK)

Dakine · « **Reply #12 on:** January 14, 2007, 12:18:36 AM »

HAHA
dunno if have patience to wait till go back to Texas by having it sent there.

But what about this (NO am sure will not work as WAY complicated for postie to handle).

Postman turns up on UK doorstep with guitar, hands bill of X amount, I show my US Green Card showing am US resident and state I am only visiting my mother (which kinda tech. I am as having to split time in both countries) then can he charge me tax/duty? :)

Too much for a postie to handle though me thinks.

And I like James's calculation as that is LESS than I thought (the guitar is about same price as his Splawn) and would be well HAPPY with that!

hunter · « **Reply #13 on:** January 14, 2007, 05:50:37 AM »

Quote from: headtheball

Would it be any cheaper to import via the Republic of Ireland, say through someone on here, then it could be passed to the likes of me in the north, then shunted over (cos it wouldn't be an "Import" then)?

It would be cheaper if you'd ship to a country with lower VAT than your home country. Customs is same EU wide.

38thBeatle · « **Reply #14 on:** January 14, 2007, 11:14:49 AM »

Nick, I can't see it working- the drummer in my band is a postie and I think he needs training to do up his shoelaces. other than that, getting it to another EU country with lower VAT would seem the best option provided you know someone there-just wait til the EU get around to "harmonising" tax across the "empire"-I suspect they will harmonise downwards won't they-cos they are fair minded people....aren't they?