Will I have to pay import tax on software I bought over the net?

[ashleymoran]

I'm not trying to make you feel guilty.

Don't think I can't tell you're a HMRC sympathiser really

Point is whatever happens it's no big deal. I used to import quite a lot of stuff from various places. Sometimes I had to pay when I didn't think I should. Sometimes I didn't. From a commercial impact it was an absolute irrelevance.

You're probably right there. I had feared the cost of importing it would be much higher. I have bad memories from a good few years back, but thinking about it that was UPS. I swear I paid more when that book got here than I did when I ordered it over the net.

I've already asked them to send it marked printed papers, so I'll just see what happens when it turns up.

Cheers
Ashley

[ASB]

And your attempt to make me feel guilty about not donating money to HMRC is futile

I'm not trying to make you feel guilty.

Worst case: they decide you pay vat on the product (about 50 quid) which you reclaim anyway. You pay perhaps 15 quid in handling charges which you offset.

Likely case: They accept the docs are not worth more than 18 quid. You pay nothing.

Point is whatever happens it's no big deal. I used to import quite a lot of stuff from various places. Sometimes I had to pay when I didn't think I should. Sometimes I didn't. From a commercial impact it was an absolute irrelevance.

ultimately the maximum impact was the 8 quid handling fee from Post office or the bit more than that charge by the couriers

[PAH]

Just download everything and print out the PDF/docs yourself. A ream of paper and an ink cartridge are peanuts.

Then there's no additional tax to worry about.

[ashleymoran]

Obviously they have system which cause them to pick certain things for further inspection. Importing a kilo brick of coke marked "printed papers no commercial value" is not likely to be a long term successful career.

Ha, no, but I did used to know a guy that had brown paper packets delivered from south america on a regular basis. They were labelled "coffee", but I think the espresso machine he had delivered was just a cover.

If you are trying to import something under the limit fine, if you are trying to import something over the limit and hoping to get away with it then that's your conscience. HMRC are hardly likely to publish a guide to help you though.

Well I genuinely do think it isn't worth much, since I already have the software and PDF manual... I'm using it right now. Certainly, I've bought many computer books worth less than £18.

And your attempt to make me feel guilty about not donating money to HMRC is futile

[ASB]

Hmm, actually - seeing as books are not subject to VAT, and I could argue they were free anyway, could I just ask them to mark them "Printed papers"? As long as the value is under £18, they get straight through then, don't they?

Whether they are subject to vat or not depends on HMRC view when they clear it. If the books are not a unique product then whether there is vat or not is dependant upon the composite product.

If whoever is clearing it sees the doc saying "printed papers NCV", or "printed papers 30$" or whatever they will either think to themselves "This is papers can't be worth a lot" and let it go through- or they might think, hm wonder what this really is - lets have a look see.

Obviously they have system which cause them to pick certain things for further inspection. Importing a kilo brick of coke marked "printed papers no commercial value" is not likely to be a long term successful career.

If you are trying to import something under the limit fine, if you are trying to import something over the limit and hoping to get away with it then that's your conscience. HMRC are hardly likely to publish a guide to help you though.

[ashleymoran]

Hmm, actually - seeing as books are not subject to VAT, and I could argue they were free anyway, could I just ask them to mark them "Printed papers"? As long as the value is under £18, they get straight through then, don't they?

[ashleymoran]

Thanks for the suggestions, I'll ask if they can send the manuals marked "sample of no commercial value".

[ASB]

It will cost me nothing extra to get the printed manual sent to me. I guess I could take the chance. Do you think it makes a difference how the item gets labelled (I guess they have to make a customs declaration)?

What do you mean by out of pocket, though? Why would I be out of pocket if I ignored the Post Office note and stuck to reading the PDFs?

There might be 5% import duty as well as the VAT. It depends on exactly how HMCR classify it. The only way to find out is to ring up. You might think it is accounting software, HMRC often have a slightly different view.

Depending on who sends it the extra charges will differ. If it comes FedEx then they simply pay whatever it is assessed at and send you a bill. This includes their handling charge of about 15 quid.

If it comes by mail (i.e. handled this end by the post office) they have a standard handling charge for anything assessed with any duty. This is £8. http://www.postoffice.co.uk/portal/p...diaId=19100260

As mentioned "sample no commercial value" will often get through, however it is still down to whether customs decide to inspect and whether they decide it is worth more than the de minimus limit of £18.

[Gonzo]

It will cost me nothing extra to get the printed manual sent to me. I guess I could take the chance. Do you think it makes a difference how the item gets labelled (I guess they have to make a customs declaration)?

What do you mean by out of pocket, though? Why would I be out of pocket if I ignored the Post Office note and stuck to reading the PDFs?

I meant that you would be out of pocket if you had paid extra to have the manual posted and then abandon it at the post office.

I am no expert on Post Offices, but where I live, they will send you a demand for money, but I don't think that you have any obligation to go and pay it providing you can live with not picking the item up.

[Sockpuppet]

You could get them to mark it "SAMPLE OF NO COMMERCIAL VALUE" or Warranty Replacement.

As you are an IT consultant they will have no commercial value as they are "samples".

[ashleymoran]

How much do you have to pay to get the printed manual sent to you?

I would be tempted to order it anyway and if the note from the Post Office turns up demanding more money you are not obliged to go and pay it. You can ignore it and make do with the pdfs so long as you are not too much out of pocket.

It will cost me nothing extra to get the printed manual sent to me. I guess I could take the chance. Do you think it makes a difference how the item gets labelled (I guess they have to make a customs declaration)?

What do you mean by out of pocket, though? Why would I be out of pocket if I ignored the Post Office note and stuck to reading the PDFs?

[Gonzo]

Just to clarify, I've paid for and received the digital download of the software and PDF manual. But they offer to send a physical copy as well if you request it. So the manual is effectively worth nothing...

But I'm worried if they send the manual it will be considered part of a £300 software package and be subject to import duty.

WDYT is the best strategy? I'd like a printed manual because the PDF is huge, but I'm not paying import tax on the value of the software for it!

How much do you have to pay to get the printed manual sent to you?

I would be tempted to order it anyway and if the note from the Post Office turns up demanding more money you are not obliged to go and pay it. You can ignore it and make do with the pdfs so long as you are not too much out of pocket.

[ashleymoran]

Now, you might be lucky and the item will arrive without customs getting suspicious.

If the customs people pick your item and decide that you should pay then you will get a note from the Post Office saying that you have to pay them the duty plus their extortionate handling fee before you can collect the item.

EDIT - Just re-read your post, if it is just the manual that is being sent via the post, is that going to be worth more than £18?

Just to clarify, I've paid for and received the digital download of the software and PDF manual. But they offer to send a physical copy as well if you request it. So the manual is effectively worth nothing...

But I'm worried if they send the manual it will be considered part of a £300 software package and be subject to import duty.

WDYT is the best strategy? I'd like a printed manual because the PDF is huge, but I'm not paying import tax on the value of the software for it!

[Gonzo]

Hi

I just bought some accounting software from New Zealand, for around £300. They offer shipping a physical product, manual and/or CD. If I get them to send the manual, will I have to pay any tax when it reaches me?

I suppose if it's just VAT I can reclaim it later. Anything else and I will stick to the download only version

Thanks
Ashley

I don't know what the commercial rules are (and they are probably different) but if you personally order anything from overseas that costs more than £18 then import duty should be paid - and I think that it is more than the VAT.

The rates should be on the HMRC website but I had a quick look and it seems most of the site is down for maintenance.

Now, you might be lucky and the item will arrive without customs getting suspicious.

If the customs people pick your item and decide that you should pay then you will get a note from the Post Office saying that you have to pay them the duty plus their extortionate handling fee before you can collect the item.

EDIT - Just re-read your post, if it is just the manual that is being sent via the post, is that going to be worth more than £18?

[ashleymoran]

Hi

I just bought some accounting software from New Zealand, for around £300. They offer shipping a physical product, manual and/or CD. If I get them to send the manual, will I have to pay any tax when it reaches me?

I suppose if it's just VAT I can reclaim it later. Anything else and I will stick to the download only version

Thanks
Ashley