Will I have to pay import tax on software I bought over the net?

[ashleymoran]

Hi

I just bought some accounting software from New Zealand, for around £300. They offer shipping a physical product, manual and/or CD. If I get them to send the manual, will I have to pay any tax when it reaches me?

I suppose if it's just VAT I can reclaim it later. Anything else and I will stick to the download only version

Thanks
Ashley

[Gonzo]

Hi

I just bought some accounting software from New Zealand, for around £300. They offer shipping a physical product, manual and/or CD. If I get them to send the manual, will I have to pay any tax when it reaches me?

I suppose if it's just VAT I can reclaim it later. Anything else and I will stick to the download only version

Thanks
Ashley

I don't know what the commercial rules are (and they are probably different) but if you personally order anything from overseas that costs more than £18 then import duty should be paid - and I think that it is more than the VAT.

The rates should be on the HMRC website but I had a quick look and it seems most of the site is down for maintenance.

Now, you might be lucky and the item will arrive without customs getting suspicious.

If the customs people pick your item and decide that you should pay then you will get a note from the Post Office saying that you have to pay them the duty plus their extortionate handling fee before you can collect the item.

EDIT - Just re-read your post, if it is just the manual that is being sent via the post, is that going to be worth more than £18?

[ashleymoran]

Now, you might be lucky and the item will arrive without customs getting suspicious.

If the customs people pick your item and decide that you should pay then you will get a note from the Post Office saying that you have to pay them the duty plus their extortionate handling fee before you can collect the item.

EDIT - Just re-read your post, if it is just the manual that is being sent via the post, is that going to be worth more than £18?

Just to clarify, I've paid for and received the digital download of the software and PDF manual. But they offer to send a physical copy as well if you request it. So the manual is effectively worth nothing...

But I'm worried if they send the manual it will be considered part of a £300 software package and be subject to import duty.

WDYT is the best strategy? I'd like a printed manual because the PDF is huge, but I'm not paying import tax on the value of the software for it!

[Gonzo]

Just to clarify, I've paid for and received the digital download of the software and PDF manual. But they offer to send a physical copy as well if you request it. So the manual is effectively worth nothing...

But I'm worried if they send the manual it will be considered part of a £300 software package and be subject to import duty.

WDYT is the best strategy? I'd like a printed manual because the PDF is huge, but I'm not paying import tax on the value of the software for it!

How much do you have to pay to get the printed manual sent to you?

I would be tempted to order it anyway and if the note from the Post Office turns up demanding more money you are not obliged to go and pay it. You can ignore it and make do with the pdfs so long as you are not too much out of pocket.

[ashleymoran]

How much do you have to pay to get the printed manual sent to you?

I would be tempted to order it anyway and if the note from the Post Office turns up demanding more money you are not obliged to go and pay it. You can ignore it and make do with the pdfs so long as you are not too much out of pocket.

It will cost me nothing extra to get the printed manual sent to me. I guess I could take the chance. Do you think it makes a difference how the item gets labelled (I guess they have to make a customs declaration)?

What do you mean by out of pocket, though? Why would I be out of pocket if I ignored the Post Office note and stuck to reading the PDFs?

[Sockpuppet]

You could get them to mark it "SAMPLE OF NO COMMERCIAL VALUE" or Warranty Replacement.

As you are an IT consultant they will have no commercial value as they are "samples".

[Gonzo]

It will cost me nothing extra to get the printed manual sent to me. I guess I could take the chance. Do you think it makes a difference how the item gets labelled (I guess they have to make a customs declaration)?

What do you mean by out of pocket, though? Why would I be out of pocket if I ignored the Post Office note and stuck to reading the PDFs?

I meant that you would be out of pocket if you had paid extra to have the manual posted and then abandon it at the post office.

I am no expert on Post Offices, but where I live, they will send you a demand for money, but I don't think that you have any obligation to go and pay it providing you can live with not picking the item up.

[ASB]

It will cost me nothing extra to get the printed manual sent to me. I guess I could take the chance. Do you think it makes a difference how the item gets labelled (I guess they have to make a customs declaration)?

What do you mean by out of pocket, though? Why would I be out of pocket if I ignored the Post Office note and stuck to reading the PDFs?

There might be 5% import duty as well as the VAT. It depends on exactly how HMCR classify it. The only way to find out is to ring up. You might think it is accounting software, HMRC often have a slightly different view.

Depending on who sends it the extra charges will differ. If it comes FedEx then they simply pay whatever it is assessed at and send you a bill. This includes their handling charge of about 15 quid.

If it comes by mail (i.e. handled this end by the post office) they have a standard handling charge for anything assessed with any duty. This is £8. http://www.postoffice.co.uk/portal/p...diaId=19100260

As mentioned "sample no commercial value" will often get through, however it is still down to whether customs decide to inspect and whether they decide it is worth more than the de minimus limit of £18.

[ashleymoran]

Thanks for the suggestions, I'll ask if they can send the manuals marked "sample of no commercial value".

[ashleymoran]

Hmm, actually - seeing as books are not subject to VAT, and I could argue they were free anyway, could I just ask them to mark them "Printed papers"? As long as the value is under £18, they get straight through then, don't they?