Can anyone help with TAX if buying from USA - I live in the UK.

[FearlessSmile]

Ok the item is $3,980.88 and I believe i need to pay 20% tax.

Do I pay 20% of GBP amount or USD? Thanks

 

[OoohShiny]

GBP or USD - 20% is 20%


USD 3980.88 / 1.3 (USD:GBP exchange rate) = GBP 3062.22

£3062.22 * 1.2 (VAT) = £3674.66

 

[Maisie]

I thought it was 22%. VAT + Import Duty.

 

[OoohShiny]

I thought it was 22%. VAT + Import Duty.

AFAIK there is no Import Duty on loose diamonds coming into the UK - one only needs to add the VAT, which is currently 20%

If a stone is set into a ring, it becomes jewellery, which IIRC has 2.5% Import Tax added to it, but I don't think I've yet found whether that's in parallel with the VAT and therefore on the import value stated, or iterative, so added to the (import value + VAT) figure

It will be on the HMRC website somewhere but I failed to find it last time I looked... lol

 

[Snowdrop13]

And there are other small fees to account for too- my bank takes a little for converting the currency and there’s usually a handling charge from the carrier.

Don’t let it put you off though, most things are still considerably cheaper than if you buy from a shop in the U.K., and there’s hardly anywhere that will get you quality and choice the likes of Whiteflash etc.

 

[MaisOuiMadame]

And there are other small fees to account for too- my bank takes a little for converting the currency and there’s usually a handling charge from the carrier.

Don’t let it put you off though, most things are still considerably cheaper than if you buy from a shop in the U.K., and there’s hardly anywhere that will get you quality and choice the likes of Whiteflash etc.

This!!

 

[lissyflo]

Logically, I assume they convert to sterling and then apply tax rates - I assume a UK government would tax a sterling amount.

But OoohShiny is right - 20% is 20% regardless of whether you multiply by 0.2 and then divide to convert to sterling, or vice versa (except for a tiny rounding difference in the pennies, possibly) - BODMAS if you have kids!

When I’ve bought from the US I haven’t been quite right in the tax I was expecting, but not massively off. I’m not sure what exchange rate they use and assumed that’s what was causing the difference. I think they may set it in advance for a fairly long period?

And I completely agree with comments above re the quality and choice of what’s available being worth the hassle.

 

[OoohShiny]

When I’ve bought from the US I haven’t been quite right in the tax I was expecting, but not massively off. I’m not sure what exchange rate they use and assumed that’s what was causing the difference. I think they may set it in advance for a fairly long period?

If you're doing a wire / bank transfer, your bank can advise the exchange rate they are applying and the (annoyingly high for what is a simple few button presses ) fees for the electronic transfer.

If you are paying by credit card, the Visa and MasterCard websites do have pages that show what the exchange rate is at that moment in time (but they are a bit of a faff to find IIRC).

 

[lissyflo]

If you're doing a wire / bank transfer, your bank can advise the exchange rate they are applying and the (annoyingly high for what is a simple few button presses ) fees for the electronic transfer.

If you are paying by credit card, the Visa and MasterCard websites do have pages that show what the exchange rate is at that moment in time (but they are a bit of a faff to find IIRC).

I meant the rate HMRC use to convert the $ amount on accompanying invoice into sterling for tax purposes. It’s not the same as the rate credit card or bank uses to convert your $ charge into £, I think because they don’t change daily like banks do. I suspect it’s set for quite a long period based on what I was charged. I did try to find the info on their website, but I’m more likely to go mad trying than to be able to make head or tail of how they provide information! The difference from what i was expecting was small, but confusing none the less.

 

[lissyflo]

I should add that it is something that could potentially catch you out if you’re doing a significant custom job (and therefore pay a hefty upfront percentage) then have a lead time of a few months. It would only be an issue I guess at times of significant exchange rate fluctuations, where what you pay as a deposit may convert into a very different £ amount for tax a few months later.

So kind of like what might happen to a currency if a country were stupid enough to vote out of, say, the EU and then stand around for two years with their fingers up their ***** organising nothing...

Rant over, carry on as you were!

 

[Maisie]

Could it be an option to buy a Crafted by Infinity diamond and deal with their Antwerp office? I think that might save you the import duty as we are still (so far) part of the EU.

 

[cflutist]

Could it be an option to buy a Crafted by Infinity diamond and deal with their Antwerp office? I think that might save you the import duty as we are still (so far) part of the EU.

Crafted by Infinity has two dealers in the UK.

 

[FearlessSmile]

Thank you I’ve ordered from Whiteflash it worked out £3124.72, so it would be roughly 22.5% on top of this? Thanks

 

[OoohShiny]

Thank you I’ve ordered from Whiteflash it worked out £3124.72, so it would be roughly 22.5% on top of this? Thanks

If you have ordered a complete ring, I believe that is the case.

As above, you will likely also have to pay some 'handling charges' to the courier/shipping company but it should not be too much.

Please do let us know the costs when you find out, so we can confirm the costs in the future!