Returns/exchanges from the US to the UK- question about VAT

[Logan Sapphire]

If I return an item to a UK-based company and I paid VAT when I purchased the ring, what happens if I return or exchange it? If I return it, does the VAT get refunded as well? If I exchange, do I pay VAT on the exchanged item?

 

[proto]

Re: Returns/exchanges from the US to the UK- question about

My first question is, if you are in the US, why did you pay VAT?

 

[dk168]

Re: Returns/exchanges from the US to the UK- question about

My first question is, if you are in the US, why did you pay VAT?

I was thinking the same, as the article was being exported out of UK, so it should be VAT exempt.

However, I could be wrong.

Can't help as I normally import from abroad, for the custom charges and handling fees to be added on top of what I paid.

I seldom return anything as it is just not worth the hassle, and would sell them via eBay etc...

I hope you'd get the information you required.

DK

 

[Logan Sapphire]

Re: Returns/exchanges from the US to the UK- question about

This is what the sales invoice shows and that amount matches what I paid to the company.

 

[chrono]

Re: Returns/exchanges from the US to the UK- question about

I am in the US and have made purchases from UK; items that are exported are exempted from VAT.

 

[Logan Sapphire]

Re: Returns/exchanges from the US to the UK- question about

I am in the US and have made purchases from UK; items that are exported are exempted from VAT.

Yeah, the more I've been reading about it, the more confused I am as to why I was charged VAT. the company isn't too timely in responding to my emails but I've asked.

 

[diamondgezer]

Re: Returns/exchanges from the US to the UK- question about

Very strange!!!

The copy invoice (section) raises more questions than it answers!!!

1) Exports from UK to a non EC country i.e. in this case US, should be zero rated i.e VAT at 0%
2) The UK has NO 7% VAT rate
3) The Telephone number on the invoice looks to be US number, and yet VAT, as I understand it, doesn't exist in the US, yet the invoice shows VAT as a heading. So what country did the invoice originate from??
4) Is the 23.80 VAT a GBP amount? (UK VAT amounts on foreign (currency) invoices MUST be shown in sterling)
5) What are the US rules on import duty?? and is there a federal or state sales tax on imports?? Did you pay these charges?

 

[Logan Sapphire]

Re: Returns/exchanges from the US to the UK- question about

Very strange!!!

The copy invoice (section) raises more questions than it answers!!!

1) Exports from UK to a non EC country i.e. in this case US, should be zero rated i.e VAT at 0%
2) The UK has NO 7% VAT rate
3) The Telephone number on the invoice looks to be US number, and yet VAT, as I understand it, doesn't exist in the US, yet the invoice shows VAT as a heading. So what country did the invoice originate from??
4) Is the 23.80 VAT a GBP amount? (UK VAT amounts on foreign (currency) invoices MUST be shown in sterling)
5) What are the US rules on import duty?? and is there a federal or state sales tax on imports?? Did you pay these charges?

Here are the answers, as far as I can tell...

The ring was purchased through Kodega, which apparently is an American storefront for Wedding Rings Direct out of Brighton. All prices shown are listed in US dollars. I checked my state's sales tax rate and it is 5%, not 7%. I'm currently looking up the rules on importing items into Virginia. It's not a lot of money, but...

 

[diamondgezer]

Re: Returns/exchanges from the US to the UK- question about

Very strange!!!

The copy invoice (section) raises more questions than it answers!!!

1) Exports from UK to a non EC country i.e. in this case US, should be zero rated i.e VAT at 0%
2) The UK has NO 7% VAT rate
3) The Telephone number on the invoice looks to be US number, and yet VAT, as I understand it, doesn't exist in the US, yet the invoice shows VAT as a heading. So what country did the invoice originate from??
4) Is the 23.80 VAT a GBP amount? (UK VAT amounts on foreign (currency) invoices MUST be shown in sterling)
5) What are the US rules on import duty?? and is there a federal or state sales tax on imports?? Did you pay these charges?

Here are the answers, as far as I can tell...

The ring was purchased through Kodega, which apparently is an American storefront for Wedding Rings Direct out of Brighton. All prices shown are listed in US dollars. I checked my state's sales tax rate and it is 5%, not 7%. I'm currently looking up the rules on importing items into Virginia. It's not a lot of money, but...

So who is the invoice from - wedding rings direct or kodega?? I assume kodega. If so does the invoice state if and where kodega is incorporated??

Disclaimer: I am not a UK VAT or US import tax/duty expert

I believe there should be no vat implication either way PROVIDED Wedding rings direct is operating in accordance with UK HMRC rules

So maybe the VAT description on the invoice is a misnomer and it's in fact some form of US Sales Tax charged by kodega??

I'm guessing here but is 7% the rate of sales tax in the state in which kodega is incorporated??

This may simply be a tax efficiency measure which is of benefit ultimately to you.

 

[MollyMalone]

Re: Returns/exchanges from the US to the UK- question about

I'm not certain from your OP... have you spoken with Kodega to find out their explanation of what the additional 7% represents?

 

[Logan Sapphire]

Re: Returns/exchanges from the US to the UK- question about

I'm not certain from your OP... have you spoken with Kodega to find out their explanation of what the additional 7% represents?

I've been trying. No one answers their US-based number. It does the double ring, which is a British telephone ring, but the number is a NYC area code. I also called the number listed in the invoice, which is an OR area code; it goes to what sounds like someone's home answering machine- I have the same one and it's just a generic voice that comes with the machine. I looked up both OR and NYC's sales taxes and neither is 7% (in fact, OR doesn't have a sales tax).

Their UK-based customer service rep hasn't responded to my email yet.

I did call VA's tax folks and they confirmed it is not a state tax. They said it's possible it could be a Federal customs duty.

The invoice reads:

Kodega (United States)
New England Street
Brighton
BN1 4GH
United Kingdom

 

[diamondgezer]

Re: Returns/exchanges from the US to the UK- question about

So most likely is it's as you said, kodega is merely a shopfront. The invoice has a UK origin and is zero rated for VAT,> The 7% is US federal import duty.

 

[proto]

Re: Returns/exchanges from the US to the UK- question about

Its 30 bucks. I would just forget about it - too much headache.

If you are on a mission on principle, I would call up HMRC http://www.hmrc.gov.uk/customs/post/buying.htm#5

I strongly suspect the chap in charge of invoicing made a ballsup and doesnt want to deal with it.

 

[Logan Sapphire]

Re: Returns/exchanges from the US to the UK- question about

Thanks, guys.

So what I was initially wondering was would I have to pay VAT on an exchange but I guess the answer would be no, since there was no VAT to begin with (perhaps mischaracterized on the invoice).

 

[proto]

Re: Returns/exchanges from the US to the UK- question about

technically the company should issue you a refund for the incorrectly charged VAT

the company then needs to make a VAT adjustment on their tax account to reflect the cancelled invoice relating to the VAT aspect.

If you do a return/exchange, you should get them to agree this with you and provide you with store credit or refund. This is asusming you manage to speak with anyone.