Christmas Holiday Shopping Online
Money Matters; Internet Shopping Can Cost More Than You Bargained

IT'S hard to believe that we're now into November, but the shops are certainly doing a good job of reminding us that Christmas is just around the corner.
It might still be too early yet for some of us to even start thinking about Christmas shopping. However, if you plan to buy your presents over the internet, you'll need to start soon so that the presents arrive before the turkey is eaten!
You need to be careful, though, in case you end up paying more than you expect for your internet purchases.
HM Revenue & Customs (HMRC) warned in a recent news release of the extra costs that many online shoppers face from import duties and VAT on purchases that are delivered from abroad.
Many people often don't realise that they might have to pay charges on purchases delivered from overseas.
HMRC states that it is important that UK and foreign internet companies can trade on a level playing field. Therefore, tax on purchases needs to be applied fairly to all.
In recent years, HMRC have seen a huge rise in the number of packages and parcels on which Customs duty and import VAT is due. This reflects increasing levels of internet shopping, particularly from suppliers in the United States - not surprising, given the high demand here for the latest new PlayStations (PSPs) that seem to be like gold dust!
Customs duty is due if the amount of duty is pounds 7 and over. Note, however, that Customs duty is not payable on goods bought from countries within the EU.
VAT is due if the value of the goods is pounds 18 and over. The duties and VAT, when applicable, must be paid whether:
You purchase the goods or receive them as a gift
The goods are new or used or
The goods are for your private use or for sale.
The Customs Duty charges are raised at the Customs Postal Depot where the goods are imported and the Customs charge levied will depend on the type of goods imported.
However, VAT may be payable either in the EU country of purchase, or in the UK if the EU supplier is UK VAT registered. In addition, special rules apply to excise goods such as cigarettes, tobacco and alcohol.
Unfortunately, the duty-free allowances for travellers arriving from outside the EU do not apply to postal importations.
In addition, most people are unaware that although the foreign sender may have completed the customs declaration form on the parcel, it is the customer who is regarded as the importer of the goods.
If anyone purchases goods over the internet and the declaration is found to be false or misleading, then the customer may be liable to financial penalties or criminal prosecution.
Furthermore, the goods themselves will be liable to forfeiture.
Source: The News Letter



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