Chronos purchases from overseas

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Subject Author Date
Chronos purchases from overseas TMN 02-19-2008
Posted by TMN on February 19, 2008, 12:28 pm
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Hi

Just thought I would tell you guys about my mistake - a few months ago
my wife went to see her parents in the UK
(from South Africa) I seized the opportunity and ordered a load from
Chronos and other suppliers for her to bring back.

I calculated the price excluding VAT because I was paying from SA.
However when I checked my credit card statement a while later I found
that I had payed the VAT. Upon inquiring they all told me that they
were forced to
charge VAT as the delivery address was in the UK.

Moderately expensive lesson!!! I reckon the VAT was still a lot
cheaper than mail charges.
Caveat emptor !

Tim

Posted by Prepair Ltd on February 19, 2008, 12:39 pm
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>Hi
>
>Just thought I would tell you guys about my mistake - a few months ago
>my wife went to see her parents in the UK
>(from South Africa) I seized the opportunity and ordered a load from
>Chronos and other suppliers for her to bring back.
>
>I calculated the price excluding VAT because I was paying from SA.
>However when I checked my credit card statement a while later I found
>that I had payed the VAT. Upon inquiring they all told me that they
>were forced to
>charge VAT as the delivery address was in the UK.
>
>Moderately expensive lesson!!! I reckon the VAT was still a lot
>cheaper than mail charges.
>Caveat emptor !
>
>Tim

You can still get the VAT back, look on the HMRC website for the claim form.

As long as you are resident outside the UK and can prove the parts left these
shores, they will refund the VAT.

If your wife had said the parts were for SA, Chronos should have advised her
about the refund if they couldn't zero-rate it themselves.

We regularly get overseas people asking for spares, and as long as they can show
country of residence is outside the UK then we don't charge the VAT.

Peter
--
Peter A Forbes
Prepair Ltd, Rushden, UK
prepair@easynet.co.uk
http://www.prepair.co.uk
http://www.prepair.eu

Posted by Dave Baker on February 19, 2008, 1:16 pm
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>
> You can still get the VAT back, look on the HMRC website for the claim
> form.
>
> As long as you are resident outside the UK and can prove the parts left
> these
> shores, they will refund the VAT.

You then open up a paper trail which means you'll get charged VAT in the
receiving country or be asked to explain why the goods weren't declared as
imports by the person bringing them in. Best left well alone IMO.

>
> If your wife had said the parts were for SA, Chronos should have advised
> her
> about the refund if they couldn't zero-rate it themselves.
>
> We regularly get overseas people asking for spares, and as long as they
> can show
> country of residence is outside the UK then we don't charge the VAT.

You shouldn't be doing this unless you are shipping the goods yourselves and
could end up accounting to HM C&E for the uncharged VAT if the inspector
catches you.
--
Dave Baker
Puma Race Engines



Posted by Peter A Forbes on February 19, 2008, 3:03 pm
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>
>>
>> You can still get the VAT back, look on the HMRC website for the claim
>> form.
>>
>> As long as you are resident outside the UK and can prove the parts left
>> these
>> shores, they will refund the VAT.
>
>You then open up a paper trail which means you'll get charged VAT in the
>receiving country or be asked to explain why the goods weren't declared as
>imports by the person bringing them in. Best left well alone IMO.
>
>>
>> If your wife had said the parts were for SA, Chronos should have advised
>> her
>> about the refund if they couldn't zero-rate it themselves.
>>
>> We regularly get overseas people asking for spares, and as long as they
>> can show
>> country of residence is outside the UK then we don't charge the VAT.
>
>You shouldn't be doing this unless you are shipping the goods yourselves and
>could end up accounting to HM C&E for the uncharged VAT if the inspector
>catches you.

Dave:

It is a well-known process and not one that we have ever had any problems with.

We also have to keep track of Zero-Rated supplies to disabled people as well,
and for the few occasions that it crops up, it is very easily covered. Our VAT
inspections have never thrown up any queries from the VAT people over the years,
we always account for the sales properly.

See also Tony's post re reclamation of VAT for overseas visitors.

Peter


--
Peter & Rita Forbes
Email: diesel@easynet.co.uk
http://www.oldengine.org/members/diesel
http://www.stationary-engine.co.uk
http://www.oldengine.co.uk

Posted by Dave Baker on February 19, 2008, 1:13 pm
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> Hi
>
> Just thought I would tell you guys about my mistake - a few months ago
> my wife went to see her parents in the UK
> (from South Africa) I seized the opportunity and ordered a load from
> Chronos and other suppliers for her to bring back.
>
> I calculated the price excluding VAT because I was paying from SA.
> However when I checked my credit card statement a while later I found
> that I had payed the VAT. Upon inquiring they all told me that they
> were forced to
> charge VAT as the delivery address was in the UK.

They were quite correct to do so. Only if they were shipping the goods out
themselves could they treat them as zero rated. Where the payment is
originating from is not relevant.
--
Dave Baker
Puma Race Engines



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