Question about VAT on orders from UK

[sjmin209]

I recently placed an order from a UK retailer for a pair of shoes. Every time I've ordered from the UK before, retailers have automatically taken the VAT charge off, but when i got the email confirmation from the store, there was no mention of VAT. When I asked about this, they said that they "do not have a facility in place with the VAT office to refund VAT on web orders." They also suggested that the 35 pound delivery charge was less than it cost them to ship the shoes, and that this would offset the VAT.

Is this BS, or are UK retailers allowed to charge VAT for goods shipped to the US?

 

[Flambeur]

I've ordered online from UK a couple times, and each time VAT was deducted.

 

[thekunk07]

have never had to pay vat

 

[spreadcollar]

It's BS. I've encountered this once before. I'm assuming that they just pocket it and hope customers from whom they don't have to collect don't notice.

Originally Posted by thekunk07

have never had to pay vat

 

[DrZRM]

£35 doesn't even sound low for shipping on 1 pair of shoes, I would fight them on this (ask to talk to the owner/manager), and perhaps cancel the order.

 

[VKK3450]

Retailers are not legally obliged to remove VAT from international orders. See, according to the govt its the retailers responsibility to collect VAT and pass it on to the tax man. If there is a VAT exempt sale, then the onus is on the retailer or they are stuck for the amount. A smaller retailer with a simple accounting / finance dept may only do the occasional overseas order and for them it may not be worth filing / taking the risk on VAT exemption.

K

 

[sjmin209]

Yes, I replied to their email by pointing out that £35 is already about £10-15 more than I've paid to have shoes shipped in the past. I also included a link to the UK Revenues & Customs page that discusses overseas shipments. I haven't heard back from them yet.

 

[VKK3450]

Ohh, and yes some retailers ust pocket the VAT. Another rationale I have heard is that there are greater costs / time / risks involved in shipping overseas (customs, fraud, etc) and that a retailer may consider keeping that as compensation.

Ultimately its irrelevant how they are accounting on the back end though. Your decision should be based upon your final purchase price...

K

 

[sjmin209]

Yes--I originally ordered the shoes because the price was good, factoring in the VAT discount. The price is OK without it--nothing stellar--but I hate this kind of back-handedness, & I'd rather give my $ to someone who's honest. We'll see if they come through.

 

[VKK3450]

Originally Posted by sjmin209

Yes--I originally ordered the shoes because the price was good, factoring in the VAT discount. The price is OK without it--nothing stellar--but I hate this kind of back-handedness, & I'd rather give my $ to someone who's honest. We'll see if they come through.

Yea, If I was the retailer I would figure that the sales w/out VAT is better than no sale.

Keep in mind that its not necessarily backhandedness. For some small retailers its ust not practical to deal with VAT exemptions. I would say its more a situation of bad transparancy / communication.

That said, I dont know the retailer in question.

K

 

[Xericx]

how much is customs usually? How do you pay it? Website says that I'm responsible for customs charges.....

 

[sjmin209]

Customs charges and VAT are two separate things. VAT is the Value Added Tax--a surcharge added by the British government to the sale of almost all goods within the UK. Customs charges are fees that the US government collects when the goods come into the country. You are responsible for paying customs fees on anything that you import. The issue here is whether you are also responsible for paying the British tax.

 

[earthdragon]

Sounds like BS. I was just in London and made a purchase at C&J requesting shipment to CA.
They deduct the VAT - which basically works out at 15% and charge £30 for Shipping.