Results 1 to 11 of 11

Thread: avoiding VAT

  1. #1
    Registered User
    Join Date
    Apr 2004
    Location
    Bristol
    Posts
    3,166
    Rep Power
    11

    avoiding VAT

    with VAT at 20 % its worth considering:

    if you order on line something costing less than £18 from companies in Guernsey there is no VAT, This is completely legal

    If you order something from tax free Honk Kong you are liable to pay VAT but it seems it is rarely collected on small items

  2. #2
    Registered User
    Join Date
    Sep 2006
    Location
    South
    Posts
    5,424
    Blog Entries
    22
    Rep Power
    11

    Re: avoiding VAT

    Except that's not entirely accurate.

    AFAICT, imports from the channel islands are subject to Low Value Consignment Relief (LVCR) because, legally the channel islands are not part of the EU.
    LVCR is an EU thing which applies to all imports into the EU from outside the EU up to a maximum value of £18. Therefore the same rules apply to Hong Kong.

  3. #3
    Commercial Operator
    Join Date
    Feb 2005
    Posts
    1,544
    Rep Power
    10

    Re: avoiding VAT

    Quote Originally Posted by Gav View Post
    Except that's not entirely accurate.

    AFAICT, imports from the channel islands are subject to Low Value Consignment Relief (LVCR) because, legally the channel islands are not part of the EU.
    LVCR is an EU thing which applies to all imports into the EU from outside the EU up to a maximum value of £18. Therefore the same rules apply to Hong Kong.
    Correct - there are a large number of people who import DVDs & Blu Rays from the USA (mainly to get things early) who discuss this regularly on forums - the £18 limit does not include postage. If you stray over the £18 you MAY be liable to VAT & duty on the cost.
    I've bought stuff from the states in the past over the £18 limit due to either lack of availability in the EU or the fact that it's cheaper even when paying the duty. I got away without paying the duty on a number of occasions (not through any subterfuge I hasten to add).
    Buying software to download from the US can also avoid the VAT if the seller isn't up to speed on these things - The big boys know about these things and collect the VAT but we recently got some software at the US price

  4. #4
    Registered User FirstMove's Avatar
    Join Date
    Jun 2004
    Location
    r=1-sin(wt)
    Posts
    1,301
    Rep Power
    10

    Re: avoiding VAT

    Quote Originally Posted by clevedonboy View Post
    I've bought stuff from the states in the past over the £18 limit due to either lack of availability in the EU or the fact that it's cheaper even when paying the duty. I got away without paying the duty on a number of occasions (not through any subterfuge I hasten to add).
    A common misconception is that the value given on the customs declaration attached to the envelope/package is the one that HMRC are interested in. As they can't easily prosecute overseas companies, it is solely the importer's responsibility to declare to HMRC if insufficient VAT or duty has been paid. The only way you can "get away with it" is to make a declaration and use Jedi mind tricks to stop them cashing the cheque. Or gamble on them not noticing for 6 years and invoke the Statute of Limitations.

  5. #5
    Registered User
    Join Date
    Aug 2009
    Posts
    290
    Rep Power
    8

    Re: avoiding VAT

    The most efficient way of avoiding VAT is bartering.

    Sadly it doesn't really happen anymore as so few people grow anything, keep animals or produce anything that other people might want.

  6. #6
    Registered User
    Join Date
    Sep 2006
    Location
    South
    Posts
    5,424
    Blog Entries
    22
    Rep Power
    11

    Re: avoiding VAT

    I ordered something from Hong Kong a couple of years ago, I can't even remember what it was now, but definitely worth more than £18.
    It arrived and I used it or gave it as a pressie and forgot about it. About a month later, I got a letter from DHL saying that they'd paid the duty on it and now I owe them £30ish and an admin fee of £15!
    I was so incensed by it that there was no way I was going to accept it easily, so I just ignored it. For about a year they kept sending threatening letters, but eventually they just stopped.

  7. #7
    Registered User
    Join Date
    Apr 2004
    Location
    Bristol
    Posts
    3,166
    Rep Power
    11

    Re: avoiding VAT

    Quote Originally Posted by Bubble View Post
    The most efficient way of avoiding VAT is bartering.

    .
    Bartering is still subject to VAT

    and yes the Vat does keep his beady eye open

  8. #8
    Registered User
    Join Date
    Apr 2004
    Location
    Bristol
    Posts
    3,166
    Rep Power
    11

    Re: avoiding VAT

    according to the register it looks like some loop holes might be closed in the coming budget
    Last edited by philsmove; 3rd-March-2011 at 07:11 PM.

  9. #9
    Registered User
    Join Date
    Aug 2009
    Posts
    290
    Rep Power
    8

    Re: avoiding VAT

    Quote Originally Posted by philsmove View Post
    Bartering is still subject to VAT

    and yes the Vat does keep his beady eye open
    Wow! It's really true! What a bunch of miseries Her Majesties Robbers and Crooks (HMRC) are.

    Anyway, looks like it only applies to VAT registered individuals. And even it it applied to everyone, somehow I don't think they'd catch up with an allotment owner who barters with a chicken coup owner.

    Besides, couldn't you decide amongst yourselves that the goods you are bartering are worth 0.000000001p, or do HMRC step in and give you hell? Anyway, I think there are much better targets for tax evasion measures, but unfortunately HMRC doesn't want to do anything.

    A few years ago one of my friends worked in an airport food outlet selling bakery products. Him and his co-workers used to barter muffins and cookies for cheeseburgers and fries with the guys across the concourse who worked in Mc Donalds. That's a whole lot of VAT totally lost from the system that the taxman never saw.

  10. #10
    Registered User
    Join Date
    Sep 2006
    Location
    South
    Posts
    5,424
    Blog Entries
    22
    Rep Power
    11

    Re: avoiding VAT

    Quote Originally Posted by Bubble View Post
    even it it applied to everyone, somehow I don't think they'd catch up with an allotment owner who barters with a chicken coup owner.
    and what would they have to pay?
    2 carrots? or a chicken leg?

  11. #11
    Registered User
    Join Date
    Apr 2004
    Location
    Bristol
    Posts
    3,166
    Rep Power
    11

    Re: avoiding VAT

    Quote Originally Posted by Bubble View Post
    , or do HMRC step in and give you hell? :
    Not in my experience

    During an inspection they discovered a "barter" between my self and another vat registered company, as we were both vat registration they simply decided to ignore it. I think they just want us to know, they are very through in their inspections


    I had a long "battle" with the vat man regarding overpaid vat, they were very pleasant and we when to court. I won, they paid me all the money back, plus interest, plus my costs

    They did then change the law, so I had to charge vat from then on, but they were very profession through out

    The people who had given me hell are planners, they are the scum of the earth

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Replies: 4
    Last Post: 1st-July-2005, 05:58 PM
  2. Avoiding pain.
    By johnthehappyguy in forum Intermediate Corner
    Replies: 63
    Last Post: 30th-March-2005, 01:55 PM
  3. Handling / avoiding rejection
    By DianaS in forum Let's talk about dance
    Replies: 1
    Last Post: 10th-July-2004, 11:00 AM

Tags for this Thread

Bookmarks

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •