There appears to be some confusion over various matters.
To summarise, assuming the import is into the UK:
1 All imports of goods are subject to Customs Duty and VAT. The chargeable rates applicable vary according to what the goods are.
This is the case whether the import is purchased from a business or a private individual, or received as a gift.
2 Model railways are classified under Commodity Code 9503003000 : ‘Electric trains, including tracks, signals and other accessories therefor; reduced-size (scale) model assembly kits.’. Customs Duty is at 0% (the same for imports into the EU) and VAT is due at 20%.
3 The value on which the VAT is chargeable is the landed price, being the purchase price plus the cost of shipping to the UK.
4 A gift package, containing 1 or more items, with a total landed value of £39 or less is free of Customs Duty and VAT. Any gift package worth more than £39 is subject to Customs Duty and VAT as appropriate. A handling fee will doubtless be charged by the carrier.
5 The previous Low Value Consignment Relief for goods valued £15 or less has been abolished
Example 1: Buying directly from a non-UK business, landed value of total consignment £135 or less.
Non-UK business should be registered for UK VAT and charge it. It should show its VAT number on the Customs declaration on the package, and Royal Mail or the carrier should just deliver it with no handling fee. If the non-UK supplier does not declare a valid UK VAT number, the VAT charge will be assessed, the carrier will normally require payment of the VAT charge before delivery, and will charge a handling fee.
Example 2: Buying from a non-UK business via an Online Marketplace (OMP), such as eBay, landed value of total consignment £135 or less.
The OMP will charge and account for UK VAT.
Example 3: Buying from a non-UK business, landed value more than £135.
The VAT charge will be assessed, the carrier will normally require payment of the VAT charge before delivery, and will charge a handling fee.
Example 4: Buying from a non-UK private individual, of any value.
The VAT charge will be assessed, the carrier will normally require payment of the VAT charge before delivery, and will charge a handling fee.
Low value items bought from a non-UK business that has not registered for VAT, or from a non-UK private individual, will still suffer the usual Royal Mail sting for £8. Any modeller buying low value items from the US already knows the pain of that.
Second-hand goods sold UK to UK: A business seller can choose to use a VAT margin scheme, but is not obliged to do so.
Alistair