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Teddy Pardo - is Customs Duty and VAT payable?

M

marshanp

ellipsis addict
I am considering experimenting with a Teddy Pardo MiniTeddy 12V-2A linear power supply for my DSPeaker AntiMode 2.0 room correction device (which in my system does ADC/DAC conversions in the course of its work).

The MiniTeddy costs £300. Carriage (from Israel, as I understand it) is a not insignificant £62. I am guessing that Customs Duty (at some unknown rate - does anybody know?) and "Value Added" Tax* will be payable on top of this. If so, it begins to look like a rather expensive experiment...


*and how, precisely, is value added to an item simply by moving it from one country to another?
 
IIRC 3% Duty for anything over £125 + VAT

so, £300 + £9 Duty + £62 VAT (plus whatever the carrier charges to collect on behalf of HMRC ~£8 ) ~=£380
 
‘Value’ isn’t added to an item upon sale (imported or not); VAT is a sales tax levied according to value. And it is payable on carriage cost as well. Occasionally you get away with it, but if not Parcelforce, for example, charge £12 to collect it.
 
VAT and duty are payable on the total value of the purchase,including the carriage.
There is no lower limit/allowance for tax/duty, and has not been for a long while. I routinely pay VAT etc. on imports worth 30-40-50 quid or so.

marshanp said:
*and how, precisely, is value added to an item simply by moving it from one country to another?
Click to expand...

It isn't, but you do not pay VAT or the local equivalent in the sending country, assuming that anything is new. If second-hand, then obviously you'd not be paying it in country of purchase anyway.

If buying new, you can't import like that anyway, although you/it might get caught, you might not. Commercial sellers abroad have to collect UK VAT and duty before they ship it to you.

If s/h, your total bill is going to be in the region of 450-460 quid. If this is coming via EPay ISP, their charges cover everything.
 
Barrymagrec said:
Well, presumably the device is more valuable to you if it is in your possession than if it`s still in another country.
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That's what Customs duty is for. The intrinsic value of the item is unchanged.

One might wish that politicians and their minions were more honest and would describe "Value Added" tax as what it really is more often than not: Purchase Tax.
 
marshanp said:
That's what Customs duty is for. The intrinsic value of the item is unchanged.

One might wish that politicians and their minions were more honest and would describe "Value Added" tax as what it really is more often than not: Purchase Tax.
Click to expand...

It is a sales or purchase tax, the term "value added" refers to the way it is calculated.
 
I reckon it is going to be [£300 + £62 carriage] + 20% for VAT + £11 Customs duty + (say) £8 collection charge = £453.40

...which causes me to think twice about bothering, given that I'm not at all sure it will make any difference audible to me.
 
Barrymagrec said:
It is a sales or purchase tax, the term "value added" refers to the way it is calculated.
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If so, its name is deliberately obfuscatory and it should be called what it is. To quote Wikipedia: "...consider a production process... where products get successively more valuable at each stage of the process. Each VAT-registered company in the chain will charge VAT as a percentage of the selling price, and will reclaim the VAT paid to purchase relevant products and services; the effect is that net VAT is paid on the value added".

Nothing is added to the intrinsic value of a product by moving it from one place to another.
 
Nobody ever wants to pay any taxes, no matter what they are called. Maybe just call them tax A, B, C......................T............... if that makes people less unhappy.
Everybody wants the state to pamper them from cradle to grave with no direct charges.
The moon is made from green cheese.

FFS

Don't want to pay taxes, don't buy anything where they are payable. Simples.
 
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When I bought my power supply from Teddy I did not pay any customs duty.

I recall reading that there was some form of agreement between UK and Israel meaning customs duty would not apply. This could of course be a false memory, so cannot be trusted.

I guess a bit of research on the internet might reveal the truth….
 
HMRC info

In the existing UK-Israel Trade and Partnership Agreement, 94% of product lines of UK goods exports to Israel (covering 99% of the value) benefit from tariff-free access to the Israeli market and 93% of product lines on UK imports from Israel (covering 99% of the value) qualify for tariff-free access to the UK.
​
There’s a thing called an EORI but you don’t need to worry for Personal Goods Imports.
 
marshanp said:
If so, its name is deliberately obfuscatory and it should be called what it is. To quote Wikipedia: "...consider a production process... where products get successively more valuable at each stage of the process. Each VAT-registered company in the chain will charge VAT as a percentage of the selling price, and will reclaim the VAT paid to purchase relevant products and services; the effect is that net VAT is paid on the value added".

Nothing is added to the intrinsic value of a product by moving it from one place to another.
Click to expand...

The Tax people aren`t interested in intrinsic value, they`re interested in purchase and selling prices. The difference between the two is the "Value Added"
 
Amber Audio said:
HMRC info

In the existing UK-Israel Trade and Partnership Agreement, 94% of product lines of UK goods exports to Israel (covering 99% of the value) benefit from tariff-free access to the Israeli market and 93% of product lines on UK imports from Israel (covering 99% of the value) qualify for tariff-free access to the UK.
​
There’s a thing called an EORI but you don’t need to worry for Personal Goods Imports.
Click to expand...
So is a Teddy Pardo electronic product within the 93%??

I suppose I shall have to ask them... though you might think that their website would have something about this, given that it asks you to specify the currency to be used for payment.

What it boils down to is: £362 OK (just), £453 not OK.
 
Amber Audio said:
HMRC info

In the existing UK-Israel Trade and Partnership Agreement, 94% of product lines of UK goods exports to Israel (covering 99% of the value) benefit from tariff-free access to the Israeli market and 93% of product lines on UK imports from Israel (covering 99% of the value) qualify for tariff-free access to the UK.
​
There’s a thing called an EORI but you don’t need to worry for Personal Goods Imports.
Click to expand...

Hmmmmm

I have a shipment from Israel due in the next 2-3 weeks. I am not holding my breath...................... The very best of luck fighting with Customs on that one. Personally, I will take what comes......

I have neither the finances nor inclination to challenge Customs if they throw a wobbler - been there............... Very fortunately, the exporter bit the bullet and swallowed his losses.
 
Barrymagrec said:
The Tax people aren`t interested in intrinsic value, they`re interested in purchase and selling prices. The difference between the two is the "Value Added"
Click to expand...
If so they might reasonably expect me to pay VAT on the carriage cost, that being a service provided to me with an identifiable price.

What they need not expect is that I pay VAT on the price of a good manufactured in another country, since there is no identifiable value added to that good by its being sold to me.
 
Vinny said:
Nobody ever wants to pay any taxes, no matter what theyare called. Maybe just call them tax A, B, C......................T............... if that makes people less unhappy.
Everybody wants the state to pamper them from cradle to grave with no direct charges.
The moon is made from green cheese.

FFS

Don't want to pay taxes, don't buy anything where they are payable. Simples.
Click to expand...

Or get a party elected that falls in with your beliefs. Simples.

Good luck on that one, BTW.
 
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