.....
Now, the calico has cost me relatively little from a Japanese auction site.
Will they charge me vat on what I actually paid for it or on what they perceive to be the actual value of the item?
Import charges can consist of the following :
1) Import VAT
This equals the VAT rate at 20% it used to be just on the item value but now also takes into account postage charges. This is because Hong Kong and Chinese sellers have had a habit of declaring value at $0.01 and then all costs in the postage (that wasn’t purely fraud on the
declaration but to bring their item
to the top of searches as the ‘cheapest’, to minimise eBay fees etc
2) import duty - depending on the item category (This should not currently apply to a RIF import)
3) handling fees. Your package sits in a carriers bonded warehouse waiting, most of the time it isn’t even touched by customs but the authorised carriers at point of entry handle clearance, tax & duty
They are not necessarily the carrier paid by the sender
Royal Mail and Parcel Force don’t operate overseas so have not been paid to driver incoming parcels - that is covered by reciperical arrangements for international deliveries
The extra handling when things get held up is picked up in the blanket handling fees
Charges are based on :
1) the declared value
2) any paperwork that contradicts the customs declaration
3) Customs may disregard declared / documented values and reassess a UK market price
Import VAT and import duty are financial measures to protect the UK market
There are minimum thresholds, so if below the threshold value then there are no import VAT or fees to pay