Why have I been charged 20% VAT on an item I have bought from Hong kong? I have never paid VAT befor

[davidrobertwarren]

I have been charged 20 % Vat on a model kit I have bought from Hong kong. I have bought dozens of figures over the years and never had to pay VAT before. The sellers says Ebay are putting the charge on. Why is this happening?

[billlaser · Accepted solution]

VAT is charged on imports valued over £15. If you've bought things over that price from HK before and not been charged, you've been lucky.

[plpmr · Accepted solution]

VAT is charged on any value, even under £135.

[rusticrye · Accepted solution]

There is no longer a £15 threshold. VAT is payable on the full amount (item and shipping).

@billlaser

@davidrobertwarren 

[treetopsminicottages · Accepted solution]

This rule came into force from 1st January 2021 and applies to any items brought from abroad including the EU.

[treetopsminicottages]

EBay is collecting the VAT of 20% on behalf of HMRC. It is payable on all imports since the 1st January 2021 not just goods from the EU. There is no lower limit now.

[davidrobertwarren]

I am not disputing the fact I now have to pay vat. Fair enough. However the seller sent me an invoice which said total price to pay £15.odd which I accepted, only once committed to pay, I was presented with a total to pay nearer £20. The seller says he didn't add vat, ebay did. Well, surely the seller should have said that his price was plus vat? I now notice the seller is saying all his prices now include vat but is refusing to accept or even understand my issue .



Sent from my Galaxy

[billlaser]

plpmr and pixiesen2012 are correct, things changed on 1st Jan including removal of low value consignment relief. Details here: https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk#goods-that-a...

[rusticrye]

It's happening because VAT on imports of less than £135 (goods plus shipping) now has to be collected by Ebay and all other platforms at Point of Sale, rather than by the carrier when the goods enter the country.  It's a very good thing, as there will now be no carrier's admin fee to pay (for them collecting the tax on the government's behalf), and that was always a killer on low value items.

If you've never had to pay VAT on imports before, you've been lucky.  Either that, or  your purchases (item and shipping) were always under £15, which was the UK import threshold up until the 1st January 2021.  There is now no import threshold of any kind - VAT is now payable on the full amount.

@davidrobertwarren 

[plpmr]

no matter what the value you are now charged 20% VAT, read this -

https://www.ebay.co.uk/help/buying/paying-items/paying-tax-ebay-purchases?id=4771&st=12&pos=1&query=...

[pixiesen2012]

the government have changed the rules and are making ebay collect the VAT on overseas purchases to ensure they get paid