Vat

[Woodsheal]

If a US person were to purchase a kilt from a UK dealer on Ebay, is it possible for that individual to get a refund of the VAT that is included in the sale price of said kilt? In this specific instance, the seller states that the VAT cannot be removed for a US buyer....

[Steve Ashton]

Many overseas sellers on EBay offer a non VAT price. I am not sure why your person does not. That sounds odd.

Most countries charge tax based on the destination of the item within their own country. Most countries also do not require taxes be collected on internet sales. (YET)

For example - Something sold from a Canadian shop to a customer within Canada would be charged the Govt. Sales Tax + the applicable Prov. Sales Tax.
That same item sold to a customer in the US would not be charged any tax.

But yes, you can apply for a VAT (Value Added Tax) refund. The paperwork alone is a nightmare.

If it were me I would find a seller willing to offer a non-VAT price.

[TRWXXA]

If it were me I would find a seller willing to offer a non-VAT price.

^^^This.^^^

Remember you could also be hit for import duty, depending on the value of the item. So you could be getting a double-whammy using a seller that refuses to remove the VAT for international buyers.

[Steve Ashton]

Please remember - The Value Added Tax in the UK is 20%. For example, if you buy something for £50.00 the VAT will be £10.00. That is the equivalent to $14.80 in US dollars.

Here is a quote from the UK Governmental website and includes the link.

"VAT is a tax on goods used in the EU, so if goods are exported outside the EU, VAT isn’t charged. You can zero-rate the sale, provided you get and keep evidence of the export, and comply with all other laws. You must also make sure the goods are exported, and you must get the evidence, within three months from the time of sale. This can be longer for goods that need processing before export and for thoroughbred racehorses.[

The time of sale is the earlier of:

• the day you send the goods to your customer
• the day you receive full payment for them

You mustn’t zero-rate sales if your customer asks for them to be delivered to a UK address. If the customer arranges to collect them from you, an indirect export, you may be able to zero-rate the sale as long as certain zero-rating conditions are met."

https://www.gov.uk/guidance/vat-expo...g-goods-abroad

[Peter Lowe]

If a US person were to purchase a kilt from a UK dealer on Ebay, is it possible for that individual to get a refund of the VAT that is included in the sale price of said kilt? In this specific instance, the seller states that the VAT cannot be removed for a US buyer....

As has been said on this thread the answer should be yes and the seller is incorrect.

However I suspect that what the seller means is that he/she does not normally do it.

If you really need to deal with this supplier I suggest that you draw his/her attention to the HMRC VAT Notice 703 paragraph 7.5 (Google - VAT Notice 703) where guidance on export by post is given.

But I strongly suspect that this will mean that you incur US Customs Duty, Sales Tax and a handling charge by the US Postal authorities. (If this is incorrect I apologise)

What ever happens good luck with getting hold of a kilt that I am sure you will wear with great distinction.

Peter

[Woodsheal]

Thanks, Gents! Valuable info and advice....

[Jock Scot]

Hello stranger! Nice to see you around.

[Pleater]

I'm a sole trader, legally, but not registered for VAT as my sales don't require or warrant it.

Perhaps the seller in this case has a turnover either too small or below the amount where registration is compulsory and so doesn't charge VAT - it is another lot of paperwork which can be expensive for a smallish firm to generate.

Anne the Pleater :ootd:

[Woodsheal]

Hello stranger! Nice to see you around.

Ahoy there, Jock!