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Posted by John Howells on 01/20/06 19:07
"P Pron" <paulatspambegone.pron@tiscali.co.uk> wrote
> I think the way it works in the real world is that VAT is calculated on
the
> consolidated value (ie including P&P) only when duty is actually payable -
> which, on the sort of quantities we're normally talking about here, is
> almost never, given that duty is waived when the amount payable is lower
> than 7. For duty to exceed 7, a consignment would have to be worth
around
> 200 - a bit rich for a few DVDs.
No. In the real world the calculation of VAT and duty are done as described
in Notice 143. That is, duty and VAT are calculated separately on what you
have called the consolidated value. If the duty is then less than 7 it is
ignored, but the VAT is not.
Of course, for VAT to be easily charged on the P&P it must be readily
visible from the exterior of the package. It should be included on the CN22,
as Amazon have done on every package I have had from them, but some
companies obviously do not understand the rules and do no declare it. HMR&C
are entitled to open the package to check its content, including any
information it may contain about the costs paid, but even then there may be
no indication of the cost of P&P if there is not a packing skip that
includes prices (e.g. DVD Box Office and EzyDVD).
John Howells
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