UK tax

[minicat]

Hi,

Does anyone know anything about UK tax when it come to buying a diamond from the US?

Thanks

 

[Maisie]

When I bought my diamond ring from the US I had to pay 17.5% VAT and 2.5% import tax.

I think that you only pay the VAT if you buy an unset diamond.

 

[minicat]

Thanks. I thought i did....just read somewhere it was tax free.....sounded too good to be true!!!

 

[Maisie]

I wish it was!

 

[Lord Summerisle]

but it is true....

when you buy an unset diamond - you only pay VAT (plus a fee to the shipping company for paying it for you) you can then have the diamond set locally by a jeweller.

if you buy a diamond and have it set in the US, on its entry to the EU you pay 2.5% import then 17.5% VAT on top (+shipping co. handling)

Still big savings over buying in the UK.

Lets put it this way - on the savings, diamond spec for diamond spec - you could fly to New Jersey, visit Good old Gold in NY and buy a 1ct F/G VS (not paying local taxs because your hotel is in a different state) and stay a day or two and fly home and declare your purchase to customs on the way in, and still have change over what it would have cost to by a 1ct F/G VS diamond in the uk in someplaces (like Hatton Gardens).

or buy from Whiteflash or Wink Jones, have it sent to Old Miner in Philidelphia - visit his shop for the appraisal... again not paying local taxes and Wink and WF are different states


lots of options.

 

[Maisie]

But VAT is tax. Value Added Tax.

 

[Lord Summerisle]

potatoe ... potartoe

 

[Maisie]

 

[minicat]

Praise the LORD!!!!!! Thanks...i didnt even see that option admist the confusion of buying!!!

I assume, like most US retail prices (atleast when i was last there) the majority of prices i see listed are without any US tax? Making that the price i would pay (plus the VAT when im back in UK) if i stay in an adjacent state to the one i buy in?

 

[Lord Summerisle]

Date: 11/27/2007 12:12:19 PM
Author: minicat
Praise the LORD!!!!!! Thanks...i didnt even see that option admist the confusion of buying!!!


I assume, like most US retail prices (atleast when i was last there) the majority of prices i see listed are without any US tax? Making that the price i would pay (plus the VAT when im back in UK) if i stay in an adjacent state to the one i buy in?

Correct - i think, but i''d seek clarification from our more knowledgeable US residents.

handy eh?

 

[stebbo]

Date: 11/27/2007 12:12:19 PM
Author: minicat
Praise the LORD!!!!!! Thanks...i didnt even see that option admist the confusion of buying!!!


I assume, like most US retail prices (atleast when i was last there) the majority of prices i see listed are without any US tax? Making that the price i would pay (plus the VAT when im back in UK) if i stay in an adjacent state to the one i buy in?

The lord is correct - all prices are excluding US sales tax.

You are also eligible for a refund of sales tax paid in certain states if you alternatively choose to buy it on the spot. Texas is one of those if Whiteflash tickles your fancy. It will require you to post the proof of import (eg VAT receipt) back to the vendor for them to refund it. Ask the vendor first if they will do it though.

 

[QD Rocks]

Not sure why you would want to buy from overseas, if you search online in the UK you will find some great companies, many list the same stones listed in the USA and most will do a price match. You will also be able to view the stone with a deposit and also view settings. Then view your finished ring before paying for it. You will also be able to have any alterations done if needed in the future.

Kind Regards

Paul

 

[JiltedGen]

First of all who says you have to declare anything.....????? Go to the US, buy your stone, bring it back to the UK. During re-entry say you went for a 3 day business trip and all you are declaring a bottle of hard liquor.

 

[Po10472]

Date: 12/9/2007 4:30:37 AM
Author: QD Rocks
Not sure why you would want to buy from overseas, if you search online in the UK you will find some great companies, many list the same stones listed in the USA and most will do a price match. You will also be able to view the stone with a deposit and also view settings. Then view your finished ring before paying for it. You will also be able to have any alterations done if needed in the future.

Kind Regards

Paul

So let me get this right, you are saying that UK companies will price match with US companies..........why would they do this, they would clearly be losing money since the costs are much lower in the US? What companies do this?

 

[QD Rocks]

they would not loose money, the biggest UK sellers can match any price worldwide.


Kind Regards

Paul

 

[Po10472]

can you give me an example?

 

[Maisie]

Date: 12/9/2007 4:46:57 AM
Author: JiltedGen
First of all who says you have to declare anything.....????? Go to the US, buy your stone, bring it back to the UK. During re-entry say you went for a 3 day business trip and all you are declaring a bottle of hard liquor.

You are encouraging PS members to break the law! Shame on you!

 

[Rhea]

Masie - you seem to know a lot about tax law. Can you tell me where to find the law about some exemptions for household and other goods when moving abroad to the UK? I''m trying to find it for basic household goods (I think it''s £3-4K), not jewellery, but it might mention jewels as well. Does the UK gov''t expect you to pay VAT on a ring you''ve had for 10 years that moved with you?

 

[Maisie]

Hi Addy

I don''t want to give you wrong information so here is the phone number for HM Revenue and Customs. They will be able to give you the answers you need

0845 010 9000

 

[stebbo]

Date: 12/9/2007 6:23:05 AM
Author: Addy
Masie - you seem to know a lot about tax law. Can you tell me where to find the law about some exemptions for household and other goods when moving abroad to the UK? I'm trying to find it for basic household goods (I think it's £3-4K), not jewellery, but it might mention jewels as well. Does the UK gov't expect you to pay VAT on a ring you've had for 10 years that moved with you?

It does depend on where you're moving from, but if it's from outside the EU, personal belongings are VAT and duty exempt (as long as you've owned them for 6 months).

Here it is in legal terms.

 

[JiltedGen]

If you like to pay 20% then by all means please do, but majority of the people do not want to pay that and I am simply telling that they do not have to especially in Rip Of Britain!

 

[Rhea]

Date: 12/9/2007 6:54:43 AM
Author: stebbo

Date: 12/9/2007 6:23:05 AM

It does depend on where you''re moving from, but if it''s from outside the EU, personal belongings are VAT and duty exempt (as long as you''ve owned them for 6 months).


Here it is in legal terms.

Thank you! I thought I had it bookmarked before but apparently not and I couldn''t find it this morning. Thanks!

 

[Maisie]

Date: 12/9/2007 6:56:44 AM
Author: JiltedGen
If you like to pay 20% then by all means please do, but majority of the people do not want to pay that and I am simply telling that they do not have to especially in Rip Of Britain!

But they DO have to. You would like them to choose not to, but we are subject to UK law here. To deliberately not pay taxes and duties is breaking the law.

 

[DrH2O]

You work for the gov''t dont you.

I honestly do not care if you have to pay for it - if you can get away with it why would you? Sorry, but I would still be able to sleep at night even more comfortably so knowing I saved an additional 20%.

But of course to each their own.

 

[QD Rocks]

Hi All, If you do buy a diamond from a US online company at the best price possible and bring the stone back not declaring this when entering the country this will of course save you money. Normally by the time you add the exspensis and also your time there is not a great saving. Also you are putting yourself at risk with an un insured stone and also breaking the law. but if this doesnt concearn you, you will save some money as UK sellers have to charge VAT.

 

[Maisie]

Date: 12/9/2007 7:14:03 AM
Author: DrH2O
You work for the gov''t dont you.

I honestly do not care if you have to pay for it - if you can get away with it why would you? Sorry, but I would still be able to sleep at night even more comfortably so knowing I saved an additional 20%.

But of course to each their own.

No I don''t work for the government. I am actually a stay at home mum.

 

[stebbo]

Date: 12/9/2007 7:02:04 AM
Author: Maisie

Date: 12/9/2007 6:56:44 AM
Author: JiltedGen
If you like to pay 20% then by all means please do, but majority of the people do not want to pay that and I am simply telling that they do not have to especially in Rip Of Britain!

But they DO have to. You would like them to choose not to, but we are subject to UK law here. To deliberately not pay taxes and duties is breaking the law.

You don't have to do anything. Some people like to play life safe, some like to take risks.

I constantly speed because I've been given 11 points to use without losing my license, and the fine is well worth it to me.

The first time you get caught not declaring a personal item, you'll get away with just having to pay VAT and duty on the spot because too many innocent people just don't understand they have to pay taxes on personal items. Should I be penalised for knowing the law? I'll use my 'warning' up thanks.

 

[Maisie]

Date: 12/9/2007 7:49:25 AM
Author: stebbo

Date: 12/9/2007 7:02:04 AM
Author: Maisie

Date: 12/9/2007 6:56:44 AM
Author: JiltedGen
If you like to pay 20% then by all means please do, but majority of the people do not want to pay that and I am simply telling that they do not have to especially in Rip Of Britain!

But they DO have to. You would like them to choose not to, but we are subject to UK law here. To deliberately not pay taxes and duties is breaking the law.

You don''t have to do anything. Some people like to play life safe, some like to take risks.

I constantly speed because I''ve been given 11 points to use, and the fine is well worth it to me.

The first time you get caught not declaring a personal item, you''ll get away with just having to pay VAT and duty on the spot because too many innocent people just don''t understand they have to pay taxes on personal items. Should I be penalised for knowing the law? I''ll use my ''warning'' up thanks.

Speed limits aren''t just there to incovenience you. They are there to try and make sure everyone is safe! I am shaking my head in disbelief at your comments.

 

[DrH2O]

Underage drinking is also breaking the law, but growing up im fairly confident you broke the law....!!

 

[QD Rocks]

Good on you, live life how you want..