Diamond Taxes to the UK

[rockrookie]

I've started looking for a diamond for my girlfriends engagement ring and I have to tell you guys that I am having a whale of a time! I had no idea that looking for a diamond could be so interesting or that there were so many things to consider! I think she may have to wait a while for me to pop the question, cos I'm so caught up looking for THE diamond!

I'm probably looking to buy A Cut Above H&A diamond of around 1/2 carat, no less than G in colour, no less than SI1 clarity. I've looked on whiteflash and I've seen a stone that i'm interested in, at a price that I like!

My question is (I've searched the forum archives etc, and I can't find any references to this topic):

Does anyone know what kind of tax overheads there are on buying a stone from the USA and shipping it to Bonnie Scotland (thats the UK btw )? Would the tax overheads be any less if I buy a stone from the EU or Australia maybe? Thanks and keep up the good work...

 

[FionaH]

Hi Rockrookie

Customs will tell you the following: loose stones are subject to a 17.5% VAT levy. If the ring is shipped already set you could be taxed a further 10% import tax.

If you have the stone courriered they get it through customs for you, and you pay the tax when they deliver it.

A friend of mine recently bought a rock from the US and had it sent to them registered mail (you must ensure that the sender has adequate insurance cover for this). They were not charged any VAT when they collected the item from the post office. The same thing happened when they had a different stone sent in the mail from Israel.

My view is that the US is cheaper than Europe for diamonds, even if you do have to pay the tax.

Hope this helps

 

[rockrookie]

Many thanks!

Thats been really helpful.

So I guess there are a couple of overheads that I need to consider on top of the price of my chosen rock:

1) Credit card = 2.5%. I think that my CC insurance covers me for purchases over the net etc - must check to see if theres a limit!

2) Additional cost of registered mailing from the US, to include appropriate insurance (any idea how much this was?)

I also need to consider whether I really have the nerve to order 'blind' from a US supplier and have them send a 1k item by registered mail!!

I think the best thing would be to contact the supplier direct and ask their advice - I'm sure they must have experience of sending goods to the UK!

Any idea where your friend purchased their stones from in US/Israel?? Would they consider doing it again??!

 

[pricescope]

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On 5/10/2002 4:33:23 AM

I've started looking for a diamond for my girlfriends engagement ring and I have to tell you guys that I am having a whale of a time! I had no idea that looking for a diamond could be so interesting or that there were so many things to consider!
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Welcome to the club, Rockrookie

 

[LesleyH]

Rockrookie:

Pleased to see you are looking to buy an A CUT ABOVE from Whiteflash.com! We have sold to many UK customers and the process is very smooth.

The good news is that any purchase under $2,000 sails right through customs in the UK with NO IMPORT taxes

BTW, we do not accept credit cards from customers outside the USA and Canada, but we do give you a 2% discount for your bank wire.

Please feel free to give us a call anytime.

LesleyH
www.whiteflash.com
(832-252-6770 from the UK)

 

[rockrookie]

I've now managed to check the official line for HM Customs and Excise in the UK (aka The Taxman ) and this is what they say..

"Diamonds always attract 17.5% VAT on importation.
Loose diamonds cut or uncut attract no Duty.

If you need any more information call 0845 010 9000 (uk). That's the National Advice Service. VAT and Customs."

This means that I will have to add 17.5% VAT (aka sales tax) onto the price of any purchase from the USA.

I'm not sure how rigidly this is enforced though - I can but hope!

Still looking....!!