[Whitehackle]

I wonder if UK members can fill me in on the tax laws in the UK as they apply to the sale of used spey/salmon rods sold to America via mail order by shops in the UK.

I've dealt with two well-known outfits; one deducts the 17% value added tax from the listed price and then charges me actual shipping cost. The other maintains that the VAT doesn't apply to used goods and charges the full list price plus a rather hefty (by comparison to vendor A) shipping & handling fee.

Can anyone break this down for me and others who buy used tackle?

 

[Gardener]

I don't know the answer, so don't take this as anything more than guesswork, but since nobody else has responded I shall. VAT is complicated and is the bane of many small businesses' lives! As you probably know, VATable goods are normally sold with the tax included and with personal exports it is the buyer who obtains a refund at their point of exit from the country. The seller provides all the evidence needed of the sale but does not, I think, need to get involved in the processing of the refund.

I think that sellers can sell ex-VAT for export provided they meet a number of criteria, but a certain amount of form-filling and proof that the sale qualifies as a zero-rated transaction is required. The paperwork needs to be kept for six years after the sale for inspection, and if there is a problem the seller would be liable for the VAT.

I suspect the second retailer you describe may have taken the view that it simply isn't worth going through all the necessary hoops, since the number and value of sales to places outside the EU isn't likely to be great (there is no refund of VAT available for exports within the EU) and the hassle outweighs the benefit. To be honest, I wouldn't blame them!

If you really want to know more, visit HM Customs and Excise website and have a look round. I think 'Notice 703' is a good place to start. Not exactly light reading, though!

http://www.hmce.gov.uk/

 

[DGC]

I too have had the VAT removed, which paid for the expensive shipping. Still had a great buy on the merchandise.
DGC