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Import duty on PC hardware for US - UK?

Started by October 14, 2007 04:01 PM
2 comments, last by hplus0603 16 years, 11 months ago
I'm shopping around for a new pc, and Vigor seem to be getting good reviews. And with the exchange rate currently buying one from the US is looking like a good idea. But I have no idea about import tax or the like, am I going to get hit by an unexpected extra charge?
According to this document, laptop and desktop PCs are not subject to import duty, but you will have to pay VAT at 17.5%.
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Yup That's right but you should be able to claim the equivalent of VAT back on the US side.

Also it's worth noting that most retailers over there (!) generally only ship to US addresses so either you will need to go there to pick it up or you need to have the goods sent to someone who is coming to Europe who can bring it with them.

There are ways to make the most of the £1:$2 at the moment but it's quite a hassle!

Good luck.
Quote: you should be able to claim the equivalent of VAT back on the US side


In the US, a seller will only charge sales tax (it's a transaction tax, not a value-added tax) if shipping to a state in which the seller has a place of business. This is because a state cannot tax out-of-state transactions, because of the federal/state separation of powers. It's also a loophole big enough to drive a cargo ship through, these days...

If you purchase goods from out of state, you (as a private person) are supposed to self-report the goods purchased on your tax return, and pay import tax (equal to sales tax) on your state tax return. I've heard it said that there was once a person who actually did that, but those rumors have so far been unsubstantiated :-)

If you are a business using the purchased items as raw materials in producing other products (almost never the case with computers), you need to file a sales tax exemption certificate with the seller before the transaction -- there is not generally any way to claim back taxes you already paid, like with VAT in Europe.

Also, in the US, all prices (including at the grocery store, restaurant, etc) are listed excluding tax. The final payment will almost always be higher than the price marked on the menu/shelf/price tag. (This confuses a lot of tourists from Europe, where prices are typically marked price-inclusive)

Unfortunately for me, I live in California, where most of the best companies (NewEgg, buydig.com, etc) all have places of business, so I end up paying sales tax anyway. Luckily, ground shipping usually only takes two days because of that :-)
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