Importing from Europe

[J69]

I want to buy a new exhaust for my Motorbike. Cheapest I can find it is roughly £1300 from Italy

I've got 2 queries though

1 - If I buy this after January 1st is there going to be any difference in import charges etc. due to Brexit?
2 - Do I have to pay VAT on the full £1300? Plus import charges? It's going to cost me an extra £300 +

Is there anything I can do to drop this outside of declaring a lower value?

 

[Fantazia2]

Depends what trade agreement is in place which I dont think anyone knows what its going to be yet.

If we are in a position where they are charging import charges from the EU, then it will be VAT on top of the item cost and postage, and also any duty which is based on the item classification, not sure for vehicle parts what that is.

So essentially

(Item Cost + Postage + Duty) * VAT

Plus whatever the couriers charge on top to pay the customs fees for you.

But If we are trading on those rules the item may end up being cheaper as they should essentially be sold to you VAT free depending on their local export rules. i.e. if you buy something currently from the EU you are not getting it VAT free but the VAT is included in the price and goes to that country, at least thats how I believe it works anyway.

 

[TWB]

no one can answer question 1 yet.

You’ll have to pay V.A.T at some point, if there’s no deal it will be calculated as above and you shouldn’t be paying V.A.T at point of sale.

If you were to buy before January 1 then any V.A.T will be paid at point of sale so there would be no additional charges.

 

[TWB]

BTW V.A.T is currently 22% in Italy and was due to rise to 25% from January 1 2021, but I believe the rise as been postponed due to COVID

 

[Fantazia2]

A quick Google has found exhaust systems have 4.5% duty, so probably going to be cheaper to buy it while we are still trading with the EU, but your only talking about anb extra £50 if they take the full 22% Italian VAT off the item price and postage.

£1300 minus 22% vat = 1065.58

Duty at 4.5% = 47.95

Vat at 20% = 222.71

Total = 1336.24 + Couriers Custom Clearance Fee which can be up to £12.

 

[J69]

Thanks for the answers

So if the VAT has already been paid in Italy I won't be hit with a 20% charge in the UK? But may be hit with a 4.5% duty charge?

I've found it for £1211 from Italy. Cheapest I can find it in the UK is £1450 so probably worth buying it abroad

 

[TWB]

you won’t get charged with U.K V.A.T only if you purchase before January 1 2021 assuming no deal is done, because you will pay it in Italy.
TWB2020-12-05 20:49:40

 

[chubsta]

might be cheaper to ride your bike to Italy and get it fitted while you re out there and ride back - no duty then as they wouldn't know!

 

[TWB]

might be cheaper to ride your bike to Italy and get it fitted while you re out there and ride back - no duty then as they wouldn't know!

This 100% avoids any duties and you get a road trip

 

[bbz149]

You must have a Ducati?