A Question for overseas Shoppers

I read in the paper(s) and see on TV that New York is flooded with

visitors from Europe on " Shopping Sprees".This is due to the low

value of the dollar against the Euro.

My question is: Do those shoppers pay a VAT on the goods they bring

back? My impression is that if a leica user bought a camera or lens

from ,say Photo Village, they would have to pay the tax upon reentry

in Europe.

Is the VAT only on "luxury" items?

I am curious as one store-owner in a mall outside New York said that

90% of her sales were to Tourests from Europe here just to shop for

the holidays.

In theory, all goods over 145 UK pounds are liable to import duty when importing to the UK that is. All this could be about to change though. See this link for details...

 

http://www.thisistravel.co.uk/travel/news/article.html?in_article_id=42018

Probably not, but they should.

 

It is easy to hide away small items, especially if you toss the original box and the item is such that you might have had it with you when you left home. It is a bit harder on larger items like exhaust pipes, though I have heard of people carrying such items through the customs too...

 

You have to pay VAT basically on everything you bought when you get home. It is no different (tax wise) compared to shopping by mail order, though it is a lot easier to get away with it if you travel with the goods compared to sending a parcel.

I read the link provided by Simon. That one shopper had to pay 20% tax/duty on her shopping spree. How much saving can be done by these shoppers? Disregard some clothing that can be made to look as if us used, Are they saving? If I were a merchant in those areas frequented by over-seas shoppers, I would be thriiled. The change proposed in the above link would be a true windfall for the casual shopper.

Ned,

 

Given the current weakness of the Dollar (1.93 Dollar = 1 UK pound) a significant saving can still be made. For example an MP (with probably useless US Leica warranty I admit!) can be bought for 2400 dollars or 1240 UK pounds, adding 20% for duty and say 50 UK pounds for shipping, that still represents a saving of 450 UK pounds against the current RRP of 1988 UK pounds in the UK.

In my experience, as far as cameras and (smaller) photo items are concerned, the customs officers usually don't pay any attention to cameras, particularly if the original packaging is not in plain sight. So yes, if you're buying a camera, you can get away without paying Customs taxes, particularly if you're crossing the border by car.

However, according to regulations, you should declare all items bought abroad which exceed approx. $50 value. So, it's up to your sense of civic duty whether you'll volunteer to pay the Customs tax on your newly purchased camera.

Get a friend in Jersey (for our USA friends that is one of the Channel Islands between France and England). Have your goods sent from the USA to them. They will then send it to your UK address (removing outward evidence of its USA origin) and, hey presto, no duty or VAT !

 

Even Amazon in the UK do this as an optional service. Saves me about 4 - 7 pounds every time I order a DVD. (Last one was 12 pounds rather than 19 pounds) also the postage is about 50 percent what UK internal postage would cost.

 

Jersey is very good at tax 'avoidance' all types.

Americans have had cheap fuel, cheap housing, cheap food and cheap goods for long enough.

 

Before the present dollar/pound situation most goods for sale in the USA for (say) 1000 dollars would cost 1000 pounds here , almost double the cost. (Nowadays I have noticed the exchange rate has bumped a lot of USA prices up especially for cameras)

 

And petrol (gasolene) cost 81.9 pence per litre (here in UK this morning)

 

That is $1.57 per litre. (NOT gallon)

 

A 3 bedroomed edwardian terraced house with a postage stamp garden and fronting straight onto a street in any town outside London and south of Manchester will cost between 150,000 - 250,000 pounds. (In London itself 400,000 - 1,000,000+ pounds depending on proximity to the centre)

 

The weekly shopping for a family of 4 will cost between 100 - 150 pounds per week (much more than that if you are eating all organic/free range etc)

 

The average 'community charge' (on property) is about 1200 pounds per year and most non self-employed working people will pay taxes/national insurance totalling about a third of all their income. (At source)

 

The average income is only somewhere between 22,000 - 36,000 pounds per year (before taxes) depending on whether you work further South or north of the UK. (People are traditionally penalised for working in the North or far South West of England. No good reason, they just are. Luckily I live in the South.)

I forgot to qualify the income part. Those figures are for household income, not individuals income.

Ned,

 

There are definite savings. I've been looking at some CV Bessa gear from Stephen Gandy at cameraquest. For a Bessa R, an L, and 35 lens, even after delivery, import duty and VAT added, I can save 40-45% on the cheapest price here in the UK.

 

As Trevor points out, many goods are much cheaper in the States than here, with USD/GBP prices often close to if not an exact numerical equivalent. Factor in the current exchange rate, and if you travel for all your Christmas gift shopping you could easily save much more than the flights cost, even with duties and VAT!

So Trevor,

Is your point that since those living in the UK have to pay such high taxes and exhorbitant (sp?) fuel costs that those of us in the States should as well?

 

Get real.

 

But, best regards and happy holidays,

 

Frank M.

Well Trevor, those housing prices are actually in line with, and in many cases - where I live for example, lower than California housing prices.

But Sheldon, to be fair, aren't you in the San Francisco Bay Area, perhaps *the* most expensive housing market in the U.S. ?

 

Spectacularly beautiful and in many ways interesting, but it's not truly representative of housing prices in the U.S.

You see, Trevor, in Sheldon's area, folks drive little bitty economy cars like <a href=http://www.photo.net/shared/portrait.tcl?user_id=42405>this one</a> because housing costs so much.

No Frank, I am well aware you all have to pay for your kid's education and you have to pay for all of your health care etc. I know people who are resident and working in the USA who have nightmares about potentially losing everything if the major bread winner loses a job.

 

I know it is usual to only have 10 days paid vacation in a year and that you can all get fired on the spot with no notice or severance etc and that your health care would automatically cease. (Why is that? Unemployment, even short term, can have many negative health effects on a family and yet that is PRECISELY the time the health care cover ceases! Seems very cruel.)

 

It is not all bad here. And at least the petrol costs keep the SUVs and HUMVs and RVs at bay. :)

The US isn't getting a deal. Europe is just getting ripped off. Distributorships are archaic in Europe, so middle costs are maximized. Volume for retailers is low compared to the US, so wholesale prices are higher. The large language & cultural variety Europe has in a relatively small geographic area inhibits efficient international marketing strategies, so the potential for increasing volume (i.e. super stores or mail order) is limited. The VAT is just the icing on the cake and is really not the problem. Europeans get that back in comprehensive health care, pensions, welfare, etc. Americans may have a brand new camera, but they don't have health insurance.

 

Interestingly, the new Apple IMac G5 comes with an internal, dedicated power supply - 110 or 220, not both. This means that you can no longer buy an Apple IMac in the US and use it in Europe without a step-down convertor. Apple said they did this to protect their dealers in Europe. That's some Microsoft thinking for sure.

Borrowed - the daily driver is MUCH less exotic :-(

For a counterpoint of view, present legislation in Mexico states that any returning passenger, entering the country by means of airplane or sea vessel, can bring into the country free of taxes and import duties a camera (film, video or digital), a personal computer or peripheral, computer software, a personal radio or music reproductor and a lot of other items I don't recall outright. There's no limitations as to the price or new/used status of the camera, computer or peripheral. Oddly enough, there's no mention of photographic lenses and other paraphernalia like tripods. I have entered several times with two cameras and a load of lenses and other gadgetry and have never been hassled about them. A relative of mine living in the US, once passed a new camera for me, packaging and everything, in plain view of the customs agents; he wasn't even questioned about it.

 

Typically, cameras are anything from 130 to 200% more expensive here than in the US. I make a point that everytime I travel to the US I order something from B&H to bring back.

 

Importing something from the US will generally cost me the following:

 

-S&H from NY: $24 to $50

 

-Import duties: WCO countries 10%, Non-WCO countries 20%, NAFTA and EU 0%.

 

-VAT on everything 15%

 

Import agent brokerage: 2% with a US$30 floor.

 

Normally I can still come ahead from purchasing locally.

Trevor

 

A few months ago I bought my CL from a guy in Jersey on the assumption that there would be no duty payable - but there was and I refused to accept it, and then after its return it was sent again when the seller visited the South Coast.

It transpired, that as Jersey is not part of the EU, VAT is payable, if properly declared.

 

Regards

 

Bruno

Well, I live in Jersey, and I can assure you all that we have a customs service as "dedicated" as any anywhere. Packages regularly get opened/checked, and if there's no properly completed customs sticker on the exterior of a package, it stands a very good chance of getting returned, assuming the other requirement of a return address has been complied with. With the "current international climate" security restrictions have been tightened up considerably. Exports to the Channel Islands may be VAT-free, as we're not in the EU, but exports from the Channel Islands are subject to whatever import restrictions/duty applicable in the destination country.

<i>New York is flooded with visitors from Europe on "Shopping Sprees"</i> <p>ROFL, that's a good one! I didn't know the Royals had so many relatives... Just to break even, the average European vistor would have to buy at least a complete Leica kit, considering cost of flight, lodging and food, not counting the minimum of two whole days' worth of time - plus jet-lag. That news is what I call prime BS. On the other hand, ANY citizen of NJ is able to ride over to Manhattan and get a tax-free camera any day of the week, right? And compared to the average European income, the average US citizen still is better off.