UK VAT deduction on items bought in the UK and shipped to the EU

[Michanglais]

I was wondering how common a practice this is.

 

icn pointed out that Rails seem to deduct VAT on items bought through their site (tho maybe not via ebay...). I believe Hattons do the same but I wondered if it covers pre-owned items.

 

I've got my eye on a pre-owned loco Hattons have got for sale that would definitely be worth buying if UK VAT was deducted, even with French VAT added back on (but not a bargain if both 'VAT's have to be paid). I've tried putting it through the check-out but the UK VAT is still applied.

 

Does anyone know if there are different rules for pre-owned items? I've messaged Hattons twice but have yet to get a response.

 

[ngtrains.com]

Yes, there are different rules. 2nd hand items are sold on a VAT margin scheme. The principal of that is that VAT was paid when the item was first sold so VAT is only due on the difference between what they paid for it and what they sell it at. It’s a right faff and an accountants nightmare.

 

What it means for your enquiry is there is no VAT to remove

[Michanglais]

10 hours ago, ngtrains.com said:

Yes, there are different rules. 2nd hand items are sold on a VAT margin scheme. The principal of that is that VAT was paid when the item was first sold so VAT is only due on the difference between what they paid for it and what they sell it at. It’s a right faff and an accountants nightmare.

 

What it means for your enquiry is there is no VAT to remove

 

As it happens, I bought an item from Rails of Sheffield last week and was charged French VAT at the point of purchase by ebay. I thought that would be the matter solved. However, I have just received a notification from the French Post Office that French VAT is due.

 

I'm wondering whether Rails did not indicate that the VAT had already been collected by ebay as I am being charged French VAT on the total, including the VAT already paid to ebay. I have contacted Rails to see if they will either send me proof that the VAT has already been collected by ebay or, if I refuse the parcel, will they reimburse me the full amount including postage and VAT charged.

 

And yes, it was a second hand item, just to further complicate matters...

 

Last time I buy anything from the UK - I'm lucky to be in the EU where, fortunately, there are lots of Swiss railway enthusiasts in Germany and Austria and I don't have to pay import duties (of course, it's another matter if I want to buy directly from Switzerland, but that's always been the case and, mysteriously, a lot of Swiss sellers seem to offer delivery from Germany and payment into a German bank account, thus avoiding French import duties - I can only assume they carry items across the border in their luggage...!).

 

 

[Andy Hayter]

It may be Ebay that you need to confront regarding the VAT since it is they who have charged you this and not Rails - but it is a complicated situation that you should not be put in.

[Michanglais]

10 minutes ago, Andy Hayter said:

It may be Ebay that you need to confront regarding the VAT since it is they who have charged you this and not Rails - but it is a complicated situation that you should not be put in.

 

Indeed. But in fact, I paid the total sum ('ebay' VAT) included to Rails. From what I can gather on ebay's site, it is up to the vendor to sort out the VAT side of things. Also, the French VAT includes the entire payment - loco, postage, ebay VAT collected, customs fees - a neat total of €52...

 

I feel sorry for Continental enthusiasts in the UK who want to make purchases from the EU!

 

[Michanglais]

After much further investigation on ebay, I have to pay the VAT twice and then request a reimbursement from ebay (with a document from the delivery company indicating the VAT charged and my own proof of payment, which means a trip to the oh-so-efficient French post office). Of course this particular double-VAT rule only applies to France and Monaco, not other EU states... Also, for other EU countries VAT only appears to be added for items over €150 (tho I may have misunderstood that because it seems very generous). Anyway, for France it is definitely for any amount, no matter how small.

 

Naturally, customs also adds €20 for simply looking at the box. That bit is not reimbursed. 

 

Lesson learned - definitely no more purchases from ebay.co.uk and 'buy with caution' elsewhere because of the non-refundable €20 customs fee... Sheesh. And there was I thinking I was getting a bargain!

 

[irishmail]

1 hour ago, Michanglais said:

After much further investigation on ebay, I have to pay the VAT twice and then request a reimbursement from ebay (with a document from the delivery company indicating the VAT charged and my own proof of payment, which means a trip to the oh-so-efficient French post office). Of course this particular double-VAT rule only applies to France and Monaco, not other EU states... Also, for other EU countries VAT only appears to be added for items over €150 (tho I may have misunderstood that because it seems very generous). Anyway, for France it is definitely for any amount, no matter how small.

 

Naturally, customs also adds €20 for simply looking at the box. That bit is not reimbursed. 

 

Lesson learned - definitely no more purchases from ebay.co.uk and 'buy with caution' elsewhere because of the non-refundable €20 customs fee... Sheesh. And there was I thinking I was getting a bargain!

 

Hi,  A lot of discussion and information in this thread regards buying to/from EU. 

Regards,  John.

 

[jjb1970]

We seem to have ended in a bizzaro situation whereby it is easier to buy and sell between the UK and countries on the other side of the world than it is between UK and EU. I have zero problems, in fact delivery from the UK is almost as quick as internal UK delivery. VAT is removed at source and for many items the international delivery cost to Singapore is a lot less than the VAT deduction. I find it crazy that I, in Singapore, seem to have far fewer issues buying from UK sellers than people in the EU, or from EU sellers than people in the UK. Bonkers.

[Fishoutofwater]

1 hour ago, jjb1970 said:

We seem to have ended in a bizzaro situation whereby it is easier to buy and sell between the UK and countries on the other side of the world than it is between UK and EU. I have zero problems, in fact delivery from the UK is almost as quick as internal UK delivery. VAT is removed at source and for many items the international delivery cost to Singapore is a lot less than the VAT deduction. I find it crazy that I, in Singapore, seem to have far fewer issues buying from UK sellers than people in the EU, or from EU sellers than people in the UK. Bonkers.

Long standing tried and tested arrangements created with an eye to expediency will work well. On the other hand new concepts with added officious indifference and downright bloody-mindedness.......................