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I am posting this up to offer some clarity as the subject often comes up.
Charges are based on the item's value, including the postage cost.
Items posted to UK as a "Gift" -
Value stated as under £40 (currently approx $60) is free from charges.
Value over £40 is charged both VAT and Import Duty.
Items posted as "Goods/Merchandise" -
Value over £15 (currently about $22) is charged VAT.
Value over £135 (currently about $200) is also charged Import Duty.
How much are the charges?
VAT is a tax charged currently at 20% of the value.
Import Duty is another tax, currently charged at 2.9%.
A UK postal service will also charge a Handling Fee on top of the above charges, which differs depending on the company.
Royal Mail charge around £8.
Parcel Force currently take your eyes out at £13.50
DHL only charge a few £s.
Example:
I receive a parcel from the USA. The sender entered the value as $100 on the packing slip, and paid $27 postage.
Therefore I get charged VAT on a value of $127 (which is a value of approx £84).
VAT is 20% of the £84 value, therefore approx £16.50 VAT
Parcel Force drill me for their £13.50
Meaning I pay a total of £30 - which is about $45.
So there you go, as a simple guide.
If anyone from UK has anything to add, if I've missed anything, just let me know.
Charges are based on the item's value, including the postage cost.
Items posted to UK as a "Gift" -
Value stated as under £40 (currently approx $60) is free from charges.
Value over £40 is charged both VAT and Import Duty.
Items posted as "Goods/Merchandise" -
Value over £15 (currently about $22) is charged VAT.
Value over £135 (currently about $200) is also charged Import Duty.
How much are the charges?
VAT is a tax charged currently at 20% of the value.
Import Duty is another tax, currently charged at 2.9%.
A UK postal service will also charge a Handling Fee on top of the above charges, which differs depending on the company.
Royal Mail charge around £8.
Parcel Force currently take your eyes out at £13.50
DHL only charge a few £s.
Example:
I receive a parcel from the USA. The sender entered the value as $100 on the packing slip, and paid $27 postage.
Therefore I get charged VAT on a value of $127 (which is a value of approx £84).
VAT is 20% of the £84 value, therefore approx £16.50 VAT
Parcel Force drill me for their £13.50
Meaning I pay a total of £30 - which is about $45.
So there you go, as a simple guide.
If anyone from UK has anything to add, if I've missed anything, just let me know.