If I ordered some software from the US because it's cheaper, do I still have to pay VAT? Are you supposed to declare it when you receive it? How does anybody know? The software costs about 200.
- posted
20 years ago
If I ordered some software from the US because it's cheaper, do I still have to pay VAT? Are you supposed to declare it when you receive it? How does anybody know? The software costs about 200.
How are you getting the software? Are you dowloading it? Or are you buying boxed software which is being sent by post? And, are you VAT registered?
Downloaded software: The supplier should be registered for VAT in the EU, and should charge you UK VAT.
Boxed software: You'll have to pay VAT and duty when the goods arrive in the UK.
"BT" wrote
Doesn't it depend on which country in the EU the supplier is registered in? Eg US company registers in Ireland, charges Irish VAT to a UK downloader - not *UK* VAT??
I was going to order boxed software from a company in Florida. They claim no tax for orders outside Florida. When it arrives at my door what do I do next? What happens if I dont do anything?
"Alfi" wrote
DHL will, a few weeks/months later, send you a bill for the VAT which they paid on your behalf, plus their "admin fee", plus ...
You could ask the supplier to put a sticker on the outside of the packaging saying somthing like: Goods not worth more than 15. It's a lie but they might fall for it!
Duty + VAT + admin fee. You'll avoid the Florida Sales tax.
I don't recall DHL doing an admin fee, but if they do it is much lower than the Royal Mail one. DHL will invoice you, while Royal Mail expect you to pay on collection.
They'll know to charge the fee by the invoice details on the package.
Thom
registered in?
downloader -
Only if they have an establishment there. For most downloads the rate of VAT that applies is likely to be that for the country in which the customer belongs.
If you are a US company and you register under the scheme, your VAT return will have at least 15 boxes on it, one for each country's VAT.
They claim
what do I do
If the courier, who could be the Post Office, DHL, UPS, etc., doesn't ask for any payment for duty and VAT, you don't need to do anything. If the value of the item is not more than 18, there'll be no duty or VAT. Over that, and there should be, but you may get lucky...
"BT" wrote
Interesting. Recently, my Antivrus software subscription came close to running out; it kindly reminded me and logged onto the software companies website to renew subscription. After ensuring I was in the "English, UK" section, I was surprised to see that the rate of VAT was 20+%!! Apparently, they were adding Irish VAT for UK customers....
How is that enforced for a supplier outside the EU?
The IR/Customs whatever can make it difficult for a major company to operate over here, ie the likes of Hotmail (Microsoft) or AMazon. For a minor company with no presence here, they probably cant. For downloads, probably best not to have a UK address, then they wont charge you VAT. For delivered software, depends how lucky you are if they spot it or not. They do seem to be getting better at spotting it.
The reason for my interest was that I live outside the EU and tried to purchase some downloadable software using a UK credit card. The supplier wanted to know the address registered with the card company, which was a UK address. They tried to add VAT even though I was resident and ordering from outside the EU. I couldn't find any way around that one without using a different card.
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