Field Notes

Everything I've Learned About United Kingdom Import VAT Tax and Duties

As RSVLTS continues to grow globally, there been lots of discussion related to our pricing for United Kingdom customers. 

These customers see a reasonable price for RSVLTS products but when the items are added to cart, various fees are tacked on.

While I am no tax professional, I have been doing a deep dive to understand how import VAT tax and duties work in key international markets. 

Every country is different but here is what I've learned about UK specifically related to our RSVLTS products.

For all UK orders, regardless of price:

There is a standard 20% VAT tax accessed by HMRC that is due on all RSVLTS orders regardless of amount. 

TL/DR, when you place an order, regardless of the amount, a 20% VAT is added.

Example order: As you'll see below there was a 20% VAT added to this order. 

For all UK orders over £135 GBP:

This is where it sucks.  The standard 20% VAT tax is due... and an additional Duty tax will be added on. Ouch!  So that means as soon as your shopping cart goes from £134 GBP to £135 GBP you must pay an additional duty fee.  

TL/DR, when you place an order that is over £135 GBP, you must pay the duty fee plus 20% VAT fee.  

Example order: As you'll see below there was the duty fee + 20% VAT added to this order. 

So, where does that leave us?

First, I want to reiterate that we have no say over this. It is a rule imposed by HMRC and we must comply. Here are some additional thoughts...

Keep your orders under £135 GBP.  As you see above you can save money by not paying the duties fee.  Yes, there is a double shipping fee but in most cases the shipping fee will be less than the duties. 

Although RSVLTS Insiders UK is smaller than the United States version of the group, it is growing quickly and the community is awesome.  With this in mind we are introducing a RSVLTS Buy, Sell, Trade UK group so our friends across the pond can take care of each other. More to come on that soon.

There are third party shipping services that some people have recommended. We have not vetted these or know much about them so please research carefully. 

Customs duties and taxes in the United Kingdom are under the purview of Her Majesty's Revenue and Customs (HMRC). Please contact your representatives if you think this tax structure is unfair and deserves to be changed. 

 

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