Hi All Glad I found this site as its got some valuable info for a newbie like me. Anyhow, at present I am trying to get myself up and running doing some online trading. I have done endless searching for suppliers of a specific product (ipods) which I know will sell well. Most suppliers are US or Asian based who work on a MOQ and FOB basis. Their price per unit is reasonable but when I do my calcs for duty (2%), VAT (17.5%) and shipping I would basically be making pennies on each item which is nothing if I risk 2-3K up front. My first Q: is Duty & VAT calculated on the cost price of the item or RRP Is there any circumstances where either are not applicable How are other UK sellers doing it if all these charges apply as it seems impossible. I have looked down the other route of drop shipping but with delivery times and the risk of Duty and VAT theres no way I could survive. Any comments would be appreciated as Im running out steam with the endless stream of scammers offering units at too good to be true prices using western union payments. Regards
If you want any definitive answers on duty I would suggest going to Customs & Excise, while members may try to help you, only by going to C&E can you be sure of knowing exactly where you stand as regards import costs/duty. There are many people on Ebay who sell products which are based in the far East and the buyer is liable for import duty of which many are still unaware of. If you want to import and then sell you need to check with customs for clarification.
I have checked HM Customs website. It says you must declare goods over a value of £145 I think, but its say an item you bought for 100 equivalent GBP but has a RRP of 200 GBP, then I think all is ok. Im wondering if the same applies to individuals receiving items from abroad. Guess I'll call tomorrow to clear it up.