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Duty and Taxation
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Overview
Taxation

Buyandship established a network of self-operating (US and JP) and dedicated (KR, CN, TW, AU, TH and ID) warehouses for users to enjoy fast and efficient delivery services. When it comes to shopping online overseas, we know one of the top concerns is getting taxed by the U.K. customs, HM Revenue & Customs (HMRC).

To get a better understanding of the general rules, you can find the brief introduction of the U.K. taxation below. The information provided below is subject to change depending on government policies. If there are any discrepancies or differences among the information of tax and duty, the information provided by HMRC, or other U.K. government authorities shall prevail.

Depending on logistic routes and the decisions of HMRC, the final tax and duty fees collected may vary. Please note that there may be additional import tax for shipments to Northern Ireland. i.e. The customs clearance for shipments to Northern Ireland may take place in the Netherlands (EU's port), instead of the U.K.

Prices listed on our website are in the U.K. Dollar (GBP / £).

Custom Duty
According to the U.K. government, there are taxes and customs for most of the goods which are imported to the U.K. by online shopping. When you have imported an overseas goods valued over £135 (or an excise goods of any value), you usually have to pay the Custom duty which is calculated based on the price of the goods, the cost of delivery service, packaging and insurance.
VAT

VAT usually occurs for all goods valued over £39, except excise goods and gifts worth £39 or less. In general, the standard rate of VAT is 20% of the total value of most of the goods and services. The cost, insurance and freight (CIF) plus other chargeable costs and the duty payable will be included in the calculation of VAT. However, you may also need to pay other import duty charges which are imposed by the HMRC if necessary.

CIF refers to the cost of the imported goods, the cost of insurance, and the cost of freight. In general, most of the import duties and taxes payable are calculated on the sum of the CIF and the landing charges.

Calculation of VAT

In general, the VAT of the shipment is calculated based on CIF, which consists of the cost of the shipment value, the freight insurance and the freight.

VAT charged formula = 20 % x (Declared goods value + freight charges + VAT value adjustment £6.25)


Example
Declared value of your goods in an order: £20
Freight weight: 2 lb
Freight charge: £10 for first 2 lb; £4.5 for additional 1 lb
VAT value adjustment: £6.25

VAT charged = 20% x (20 + 10 + 6.25) = £7.25

Additional Information
Q: How is the value of the goods counted when I consolidate multiple shipments into an order?

A: The value of “the goods” is counted based on the total value of a shipment order containing multiple shipments, instead of the single shipment of the consolidated shipment order.

If you ship two goods in a single order and the declared values of the goods are £10 and £20, the shipment order will be counted as a total value of £30.

Q: How do I pay the tax and custom duty?
A: Our courier partners will help collect the taxes, custom fees or any other duty fees if any. Please note that there will be a handling fee charged by the courier while any tax fees occur. Once you have received an email or SMS notification from the courier, please follow the bill instruction provided and settle the fees. The delivery of your shipment will be continued afterwards.
Q: Do all shipments sent to the U.K. follow the same taxation rules?

No, it depends on the logistic routes. For example, there may be additional import tax for shipments to Northern Ireland as the customs clearance for the shipments may take place in the Netherlands (EU's port), instead of the U.K.

Q: Want to know more about VAT and Custom duty?
A: Please refer to the information provided by the U.K. Government. You may also check the reference below.