Play. com &Vat

[Russethouse]

 I have recently bought an iPad from Play.com - no Vat was shown on the invoice, do their items include VAT or not ?

 I have emailed them but so far no response, maybe its such a silly question they can't be bothered ![:)]

[Pickles]

I am assuming that you had it delivered to the UK. They are Jersey-based and therefore outside the UK VAT system. However, you should have been charged VAT on the import of an Ipad from them. There was an exemption for the supply of low-cost items (IIRC the value limit was £18), but this would not apply to higher-priced items, and in any case this has now been abolished (though apparently Jersey-based companies are trying to get round this by posting via Belgium). The VAT should have been collected by the delivery company before releasing the parcel to you (IIRC).

[Russethouse]

 Surely for VAT to be collected by the delivery agent a customs form would need to be filled in by Play.com to red flag the contents were Vat - able ?  (Maybe that will be the system in the future) There wasn't one, and I didn't pay any further.

I believe the new situation regarding the change of rules has lead to a lot of job concerns in the Channel Islands

[Pickles]

[quote user="Russethouse"] Surely for VAT to be collected by the delivery agent a customs form would need to be filled in by Play.com to red flag the contents were Vat - able ?  (Maybe that will be the system in the future) There wasn't one, and I didn't pay any further.[/quote]

I have just received an Amazon delivery from Jersey (Indigostarfish). The address label contained the customs declaration, and in this case referred to a "VAT-prepaid authorisation". The invoice provided is NOT a VAT invoice. The blurb on the Amazon site says

[quote]Although, as of 1st April 2012, shipments from Indigostarfish.com

include all applicable taxes (e.g. VAT), Indigostarfish are unable to

provide you with an VAT invoice for this sale.

When products are

imported into the UK, VAT is usually payable in the UK by the importer

of record.  When ordering an item from Indigostarfish.com, you are

acting as the importer of record and must comply with all laws and

regulations of the UK.  Whilst at law, you are liable for import VAT at

the time of delivery, Indigostarfish.com will discharge that obligation

on your behalf by making a prepayment of VAT to HM Revenue & Customs

of an amount which is included in the price you pay for your purchase  

If you are a VAT registered  business and would like to recover the VAT

paid you should keep the outer wrapper and the invoice from

Indigostarfish.com to support your claim.[/quote]

Clear as mud!

[Russethouse]

Thanks... I suspect my wrapper went out in the recycling on Monday ! But I do have the delivery note and it will appear on my bank statement ......

[Sprogster]

Pickles,  Jersey Post has stated that Jersey mail order companies are not using Belgium, Germany or anywhere else, pointing out there are no direct flights from Jersey to the Continent and therefore all the Channel Islands mail goes via the UK in the first instance! Apparently, this was just a scurilous rumour without any foundation.

In answer to the OP, Jersey Post is an authorised VAT collection agent for HMRC, so VAT would have been charged and paid in advance. Otherwise, the ipad would have been impounded in the UK.

As for the future of the LCVR industry, UK companies like HMV had already relocated to countries like Switzerland and Luxembourg, as bizarely the UK government has not brought in any measures against low value imports other than from the Channel Islands. Go figure!

[Pickles]

[quote user="Sprogster"]Pickles,  Jersey Post has stated that Jersey mail order companies are not using Belgium, Germany or anywhere else, pointing out there are no direct flights from Jersey to the Continent and therefore all the Channel Islands mail goes via the UK in the first instance! Apparently, this was just a scurilous rumour without any foundation.[/quote]

Having rechecked my source, I am ashamed to say that I think that the original source for this is the Daily Wail - I'd got it second-hand.

[quote user="Sprogster"]In answer to the OP, Jersey Post is an authorised VAT collection agent for HMRC, so VAT would have been charged and paid in advance. Otherwise, the ipad would have been impounded in the UK.[/quote]

That explains what is going on. Thanks for that. It is slightly strange that they do not show the VAT breakdown on the invoice (which they do for other, non-Jersey, sources).

[quote user="Sprogster"]As for the future of the LCVR industry, UK companies like HMV had already relocated to countries like Switzerland and Luxembourg, as bizarely the UK government has not brought in any measures against low value imports other than from the Channel Islands. Go figure![/quote]

This was already noted at the time of the announcement of the new policy towards Jersey. Either the Govt or the Civil Service (or both) is just putting policy together on the fly, reacting to the latest perceived issue and oblivious to the obvious consequences.

[Russethouse]

Thanks Sprogster. 

I particularly wanted an iPad 2 and as there is now an iPad 3 it was more difficult to source, Play.com were one of the few stockists.