Can't Sell My USA Bought Camera in the UK?

Started Jul 4, 2014 | Discussions thread
Aberaeron Senior Member • Posts: 6,000
Re: Can't Sell My USA Bought Camera in the UK?

NottsPhoto wrote:

Aberaeron wrote:

TTMartin wrote:

Sante Patate wrote:

edwardwallace wrote:

My wife and I have been living in the UK now for 9 months. Her job transferred her here on a 2 year secondment. I purchased my camera from KEH in the states back in March 2012. Yesterday, I was trying to trade my D800 and a lens to MPB Photographic . They told me they would not be able to buy it from me . I was asked, " Do you have proof of VAT being paid upon these items when importing into the UK." Then was told, "the deal cannot go thru because I did not pay VAT"

Can someone please explain what the deal is ???

The "explanation" is at http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_PublicNoticesAndInfoSheets&propertyType=document&columns=1&id=HMCE_CL_000282

Scroll down to Section 5.1.

To cut a long story short: if you owned the camera for 12 months before you went to the UK, and declared it to HM Customs when you arrived (scroll back up to Section 3.1), and have owned it for 12 months after you arrived, you don't have to pay VAT. It sounds as though you didn't declare the camera when you arrived, and in any case you haven't used it in the EU it for 12 months, so the shop was right.

Whether you can retrospectively declare it now, wait three months and try again I do not know.

Where is it that you are making the assumption that he didn't declare it initially?

He's only been in the UK 9 months, VAT would be due if he sold it now if he declared it originally or not.

If it was declared, then he should be able to sell it after being in the UK for 1 year (another 3 months) without VAT being due.

There is NO VAT due on used consumer goods in the UK unless the original purchaser was VAT registered and reclaimed the original new purchase VAT.

For instance, a pick-up truck is invariably sold as a commercial vehicle and the vast majority of buyers reclaim the whole 20% VAT on that purchase price. When they sell it, they charge VAT on the sale price and the dealer then itemises VAT on the invoice for a subsequent purchaser who might, or might not further reclaim that VAT. If the original purchaser did not have a VAT registered business and did not therefore reclaim the original VAT, then there will be no VAT on resale ever again on that item, whether it be a pick-up or a camera.

Camera buyers, even professionals, tend not to be VAT registered [even if only they would have to charge 20% extra to all their customers if they were] and therefore you can generally assume, unless stated otherwise, that an used camera will not be eligible for VAT and VAT will not be part of the sale price.

It's not that hard to grasp, surely?

That's not strictly true, Under the VAT margin scheme dealers in used goods charge VAT on the difference between their purchase price for the goods, which would not have had the vat reclaimed... And their selling price. Ie the increase in value that has not had VAT charged on it..

but the dealer has to be carefull if he is using the scheme, as it assumes that VAT has already been paid on the goods new price.... Otherwise this could be a convenient way for dealers to bring in ex EU goods with no vat on them, and escape liability for vat on the full value landed in the EU.... So a dealer has to ensure that the goods don't have any outstanding vat liabilities before he can resell it under the scheme.. Which of course mpb use... If the dealer is not carefull, then of course he could come unstuck during a ( all too common ) inspection and HMRC could assign liability at their discretion.... So even though during a private sale vat is not a issue, if it's being resold as part of the vat margin scheme then vat liability is a issue..

http://www.hmrc.gov.uk/vat/start/schemes/margin.htm#5.

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www.pageonephotography.co.uk
Striving hard to be the man that my dog thinks I am.

That is indeed the case but do VAT inspectors go through the financial accounts of private individuals who trade-in/part-exchange things like cameras? Who probably don't keep financial records at all. I don't think so. Not worth their time and effort for one-off items. If it was a container load of stuff from business to business, then yes they would be very interested.

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