UK Import Fees Confusion

[Minted]

Morning all,

Think I may have made a rookie error with EU to UK import fees but am doubting my understanding of them now. 

Early Jan I bought a collectable silver coin from EMK in Germany.  Value around £60 inc postage.  Came through customs no problem.  Last week, I ordered a few similar collectable silver coins from the same place to make the delivery cost more effective, overall total around £180.  Being held at customs.  I've been asked to pay import VAT around £8 (plus a £12 admin fee) before they'll deliver them.  

Now, I can't work out what's going on here.  £8 isn't the 20% VAT that I'd expect if VAT was totally missed by the sender.  I thought perhaps it was due to the total amount being over £135, triggering duty at ~3.4% iirc (which I had forgotten about when ordering) however it's listed on the letter as import VAT, not duty.  

Is there something obvious I'm missing here?  Would I have been better off splitting into 2 deliveries as a second postage would be cheaper than the charges I'm having to pay?  Any insight welcome so that I don't make the same mistake again.

Thanks

[BullionBuyerUK]

If your buying from EMK coins, they are based in Germany, they don't charge UK VAT on any of their purchases, so customs will pick that up if you have bought silver. Obviously the odd few slip through the net. Gold you wouldn't pay any import VAT on

[ZigZag]

12 minutes ago, BullionBuyerUK said:

If your buying from EMK coins, they are based in Germany, they don't charge UK VAT on any of their purchases, so customs will pick that up if you have bought silver. Obviously the odd few slip through the net. Gold you wouldn't pay any import VAT on

Last year I made a couple of gold purchases from EMK. The first was exactly as you describe, the second had VAT added, whilst I then had a bit of chore trying to claim back. You can’t argue with customs or you don’t get delivery, so you have to pay the charge, even if wrongly added on; then try claiming back.

I’d bought 2 x 1/10 gold Kooks, unfortunately EMK didn’t make it obvious from memory what the consignment was, so hence, import VAT was charged by customs.  Just a warning for others using EMK. They offer a good service but this was a pain.

[Pete]

All goods purchased from the EU are no longer in free circulation since Brexit.
They are subject to 20% VAT plus a processing fee determined by the courier or Royal Mail.
What you also need to look out for is double taxation.
A seller in Germany for example may already have included German VAT so your invoice is coin plus local VAT.
UK customs then charges UK VAT on the full declared value so in effect you could be paying up to around 40% in tax.
If you are purchasing from the EU then you need to insist the seller ships VAT free but some won't do this because it involves extra paperwork.

[ZigZag]

2 minutes ago, Pete said:

All goods purchased from the EU are no longer in free circulation since Brexit.
They are subject to 20% VAT plus a processing fee determined by the courier or Royal Mail.
What you also need to look out for is double taxation.
A seller in Germany for example may already have included German VAT so your invoice is coin plus local VAT.
UK customs then charges UK VAT on the full declared value so in effect you could be paying up to around 40% in tax.
If you are purchasing from the EU then you need to insist the seller ships VAT free but some won't do this because it involves extra paperwork.

Here is what I found just to show, VAT wasn’t added but the customs documents either through paperwork hassle as you said or just missed lapses, left me high and dry with customs having to pay and then try claiming back.

Unfortunately, no U.K dealer was selling Gold Kook 1/10’s, EMK were the cheapest option and readily stocked; their service was otherwise fine.

[Minted]

25 minutes ago, BullionBuyerUK said:

If your buying from EMK coins, they are based in Germany, they don't charge UK VAT on any of their purchases, so customs will pick that up if you have bought silver. Obviously the odd few slip through the net. Gold you wouldn't pay any import VAT on

Thanks for that.  I'm still confused by the amount though, £8 isn't anywhere near 20% of £180?  

 

[SiCole]

11 minutes ago, ZigZag said:

Here is what I found just to show, VAT wasn’t added but the customs documents either through paperwork hassle as you said or just missed lapses, left me high and dry with customs having to pay and then try claiming back.

Unfortunately, no U.K dealer was selling Gold Kook 1/10’s, EMK were the cheapest option and readily stocked; their service was otherwise fine.

How much did you end up paying with import fees please bud? Looking at doing the same with the 2023 ones.

[Minted]

21 minutes ago, ZigZag said:

Last year I made a couple of gold purchases from EMK. The first was exactly as you describe, the second had VAT added, whilst I then had a bit of chore trying to claim back. You can’t argue with customs or you don’t get delivery, so you have to pay the charge, even if wrongly added on; then try claiming back.

I’d bought 2 x 1/10 gold Kooks, unfortunately EMK didn’t make it obvious from memory what the consignment was, so hence, import VAT was charged by customs.  Just a warning for others using EMK. They offer a good service but this was a pain.

I bought a 1/10 gold Kook from the USA myself.  Assumed it would be VAT free...but then got an email from Royal Mail saying 'there might be charges to pay'.  Thought I'd messed up that one and just waited to see what happened.  Took ages to clear customs, but then arrived without any problem or any extra fees being requested.  Fortunately it was clearly stated on the packaging what was inside.  I've no idea why it took so long to get through customs though.

Must admit I'll be more cautious of EMK in future after this.  As you say, the service is great, quick dispatch, very well packaged, online delivery tracking all the way through.  But the extra hassle and delay in delivery is a pain.

[Minted]

27 minutes ago, Pete said:

All goods purchased from the EU are no longer in free circulation since Brexit.
They are subject to 20% VAT plus a processing fee determined by the courier or Royal Mail.
What you also need to look out for is double taxation.
A seller in Germany for example may already have included German VAT so your invoice is coin plus local VAT.
UK customs then charges UK VAT on the full declared value so in effect you could be paying up to around 40% in tax.
If you are purchasing from the EU then you need to insist the seller ships VAT free but some won't do this because it involves extra paperwork.

Thanks Pete.  Were the rules different for this before Brexit?  I've only been collecting PM's within the last couple of years.  Will check more carefully whether VAT is included from international sellers in future.

[ZigZag]

29 minutes ago, SiCole said:

How much did you end up paying with import fees please bud? Looking at doing the same with the 2023 ones.

Sorry, can’t help you with that, never kept the receipts, that’s why I can’t recall what form or where I tried to claim from, just remember it being added hassle.

 

25 minutes ago, Minted said:

I bought a 1/10 gold Kook from the USA myself.  Assumed it would be VAT free...but then got an email from Royal Mail saying 'there might be charges to pay'.  Thought I'd messed up that one and just waited to see what happened.  Took ages to clear customs, but then arrived without any problem or any extra fees being requested.  Fortunately it was clearly stated on the packaging what was inside.  I've no idea why it took so long to get through customs though.

Must admit I'll be more cautious of EMK in future after this.  As you say, the service is great, quick dispatch, very well packaged, online delivery tracking all the way through.  But the extra hassle and delay in delivery is a pain.

Yeah, I’d bought a couple of things from the states and also seemed an age. That’s why I went for EMK first time, I bought direct from their online shop, as they were cheaper and had no hassle; this was definitely only a couple of months earlier. Second time I bought through their eBay shop which was about a tenner more each coin but seem to remember some offer linked with nectar, made them slightly cheaper; again can’t remember and just been trying to spot it but haven’t got the reason documenting it.

There was logic to doing it that way, maybe though that caused the import hassle second time, just guessing really.

edit: should add, you can see from my order date and despatch due date, there was no real delay with EMK, just paying customs charge prior to delivery by Royal Mail I think it was, in the U.K.

Edited January 29, 2023 by ZigZag

[daca]

You are paying 5% VAT on the second delivery. Probably EMK put on the label the code for collectible/ numismatic, that is good for you - lower VAT.

Edited January 29, 2023 by daca

[Fadeingstar]

I would agree that it looks like they have been coded a Subheading 970531 - Collections and collectors' pieces of numismatic interest https://www.trade-tariff.service.gov.uk/subheadings/9705310000-10