Import tax on horses

[Quadro]

As title really, just wondering if anyone is more clued up on the import tax situation on horses brought from Southern Ireland. I am assuming that horses brought from NI would not be subject to this? But horses from Southern Ireland would be subject to 20%? At what point would this payable? Would it just be calculated on a receipt from the seller?

 

[Laafet]

This is a difficult one to answer quickly, I have been moving horses all year so just about have it sussed. You are liable for 20% VAT on purchases, also if it is gelding you have to pay Duty which is 10%, calculated on the value you paid. This has to be paid before the horse 'lands' in the UK, an agent like myself would organise it for you. If you are VAT registered then you can claim this back using postponed accounting.

 

[Quadro]

Would be a purchase from a private seller, and be a filly. Does the receipt for the value of the horse need to go to customs for them to register the tax? And then have it paid before the horse arrives in the UK?
Thank you for your help on what seems to be a difficult area

 

[Michen]

Most transporters are simply using NI ports to get around this.

 

[Nasicus]

This is a difficult one to answer quickly, I have been moving horses all year so just about have it sussed. You are liable for 20% VAT on purchases, also if it is gelding you have to pay Duty which is 10%, calculated on the value you paid. This has to be paid before the horse 'lands' in the UK, an agent like myself would organise it for you. If you are VAT registered then you can claim this back using postponed accounting.

Just being curious, why the duty tax on geldings specifically?

 

[hollyandivy123]

Just being curious, why the duty tax on geldings specifically?

"Leaving the EU's customs union means the UK's trading relationships would be conducted along World Trade Organisation rules rather than the tariff-free arrangement within the single market.

There are no WTO tariffs on 'pure-bred breeding animals' but a tariff of up to 11.5 per cent might have been applied to geldings arriving in the UK, "

 

[Fanatical]

Most transporters are simply using NI ports to get around this.

This. Ring around the transport companies and they will fill you in on the options.

 

[Nasicus]

"Leaving the EU's customs union means the UK's trading relationships would be conducted along World Trade Organisation rules rather than the tariff-free arrangement within the single market.

There are no WTO tariffs on 'pure-bred breeding animals' but a tariff of up to 11.5 per cent might have been applied to geldings arriving in the UK, "

Ah, I figured it would be something to do with them being unable to breed! Interesting though, the wording 'pure-bred breeding animals'. Wonder where that leaves Heinz-57 type stallions?

 

[Quadro]

As far as I am aware the NI loophole will close in July? I am in Scotland so they likely use NI anyway to get to us

 

[Laafet]

Would be a purchase from a private seller, and be a filly. Does the receipt for the value of the horse need to go to customs for them to register the tax? And then have it paid before the horse arrives in the UK?
Thank you for your help on what seems to be a difficult area

As a shipper, we make up a Commercial Invoice with the value we have been given for the horse and submit that to the customs agents here and in Ireland. They would advise the amount of VAT to be paid and that has to be cleared before the horse clears the port of departure. In theory you could value the horse at a low value to avoid paying a lot of tax, this is being done by 'some' shipping agents.

 

[ycbm]

"Leaving the EU's customs union means the UK's trading relationships would be conducted along World Trade Organisation rules rather than the tariff-free arrangement within the single market.

There are no WTO tariffs on 'pure-bred breeding animals' but a tariff of up to 11.5 per cent might have been applied to geldings arriving in the UK, "

I don't understand this, we have a tariff free arrangement with the single market, we aren't using WTO rules.

This is a difficult one to answer quickly, I have been moving horses all year so just about have it sussed. You are liable for 20% VAT on purchases, also if it is gelding you have to pay Duty which is 10%, calculated on the value you paid. This has to be paid before the horse 'lands' in the UK, an agent like myself would organise it for you. If you are VAT registered then you can claim this back using postponed accounting.

What's the duty for Laafet, do you know? I thought we had agreed tariff free trade with the single market, but somehow that seems not to apply to horses?
.

 

[ycbm]

As a shipper, we make up a Commercial Invoice with the value we have been given for the horse and submit that to the customs agents here and in Ireland. They would advise the amount of VAT to be paid and that has to be cleared before the horse clears the port of departure. In theory you could value the horse at a low value to avoid paying a lot of tax, this is being done by 'some' shipping agents.

Is VAT payable even if the seller is a non-vatable private seller or small turnover dealer?
.

 

[hollyandivy123]

Is VAT payable even if the seller is a non-vatable private seller or small turnover dealer?
.

my friend sent her mother in Portugal a hand made bowl that her son hand made, he is 2 years old, it cost her £50 in duty as UK is not EU (made the mistake of saying it was worth money) but if she had valued it at 0 there is still a duty/fee charge by the receiving country. We lost the right to send things as we did before when we were part of the EU

https://personal.help.royalmail.com/app/answers/detail/a_id/106

https://www.gov.uk/export-goods


but there is better information here

https://ec.europa.eu/taxation_customs/uk_withdrawal_en


i think you think the tariff free negotiated by Boris actually means this tariff free............sorry it was a game of smoke and mirrors

 

[ycbm]

my friend sent her mother in Portugal a hand made bowl that her son hand made, he is 2 years old, it cost her £50 in duty as UK is not EU (made the mistake of saying it was worth money) but if she had valued it at 0 there is still a duty/fee charge by the receiving country. We lost the right to send things as we did before when we were part of the EU

https://personal.help.royalmail.com/app/answers/detail/a_id/106

https://www.gov.uk/export-goods


but there is better information here

https://ec.europa.eu/taxation_customs/uk_withdrawal_en


i think you think the tariff free negotiated by Boris actually means this tariff free............sorry it was a game of smoke and mirrors

I received a gift from an HHO member in Italy three weeks ago and paid no duty.
.

 

[Winters100]

I have stopped ordering from UK websites. Stuff now takes ages to arrive and duties seem to be applied on some unfathomable random basis.

I have also spent days trying to sort out my immigration status here, because the 'protections' that expats are afforded by the withdrawal agreement are also smoke and mirrors. Have had to hand over 5 years worth of bank statements, medical records and utility bills, which were not easy to get my hands on, paid a fortune to have a 90 page insurance document translated by the sworn translator, and subsequently rejected because at the bottom of the bank statements it said in English 'electronic copy, no signature or stamp required'. Apparently this violated the rule of the documents having to be in the local language. Have now had to hire a lawyer to handle the appeal.

I also could not bring my Mother here to be cared for, despite having had a wing of the house fully converted for her use with disabled access etc, so now she has deteriorated our family is split with me having to go to the UK next week for goodness knows how long.

My business partners have shut the London office putting 38 people out of well paid jobs.

But hey, we will get a blue passport, so I am sure that it was all worthwhile.

 

[Ownedby4horses]

my friend sent her mother in Portugal a hand made bowl that her son hand made, he is 2 years old, it cost her £50 in duty as UK is not EU (made the mistake of saying it was worth money) but if she had valued it at 0 there is still a duty/fee charge by the receiving country. We lost the right to send things as we did before when we were part of the EU

https://personal.help.royalmail.com/app/answers/detail/a_id/106

https://www.gov.uk/export-goods


but there is better information here

https://ec.europa.eu/taxation_customs/uk_withdrawal_en


i think you think the tariff free negotiated by Boris actually means this tariff free............sorry it was a game of smoke and mirrors

Im afraid it’s been sent incorrectly, if it’s correctly marked as a “gift“ or “other” and leave the value blank or zero, there is nothing for the receiving person to pay.

We get items sent to us by family in the UK often (Gifts and things like my glasses that I left in the UK). You only pay import when it is a purchased item and gets marked as “sales” on the custom declaration.

 

[fetlock]

Im afraid it’s been sent incorrectly, if it’s correctly marked as a “gift“ or “other” and leave the value blank or zero, there is nothing for the receiving person to pay.

We get items sent to us by family in the UK often (Gifts and things like my glasses that I left in the UK). You only pay import when it is a purchased item and gets marked as “sales” on the custom declaration.

https://www.gov.uk/government/publi...tice-143-a-guide-for-international-post-users

2.4 Gifts

The Gift allowance is £39 in value, gifts above this amount are liable to Import VAT. Customs Duty also becomes payable if the value of the goods is over £135.


To qualify as a gift:

• the customs declaration must be completed correctly
• the gift must be sent from a private person outside the UK to a private person(s) in the UK
• there is no commercial or trade element and the gift has not been paid for either directly or indirectly by anyone in the UK
• the gift is of an occasional nature only, for example, for a birthday or anniversary

If you purchase something from outside of the UK to give as a gift to a relative or friend, whether or not it is addressed to that person, it will be treated as a ‘commercial consignment’, for which the Import VAT relief threshold in section 2.3 applies.

 

[Ownedby4horses]

Winters100, you have my sympathy. It is an incredibly stressful time being an ex-pat trying to protect residency under the withdrawal agreement.

https://www.gov.uk/government/publi...tice-143-a-guide-for-international-post-users

2.4 Gifts

The Gift allowance is £39 in value, gifts above this amount are liable to Import VAT. Customs Duty also becomes payable if the value of the goods is over £135.


To qualify as a gift:

• the customs declaration must be completed correctly
• the gift must be sent from a private person outside the UK to a private person(s) in the UK
• there is no commercial or trade element and the gift has not been paid for either directly or indirectly by anyone in the UK
• the gift is of an occasional nature only, for example, for a birthday or anniversary

If you purchase something from outside of the UK to give as a gift to a relative or friend, whether or not it is addressed to that person, it will be treated as a ‘commercial consignment’, for which the Import VAT relief threshold in section 2.3 applies.

Broadly correct guidance from a UK site, as that’s why I stated the gift must have a zero value marked on it.

However, the issue as this isn’t the case for all countries (including countries in the EU), countries can make their own import rules for items coming from outside the EU. Denmark has decided that anything with a value over 80dkk (£9ish) will be subject to import charges. That’s why if it’s a gift, it has to be marked as zero.

 

[little_critter]

Is VAT payable even if the seller is a non-vatable private seller or small turnover dealer?
.

I would think so. The rule of thumb I keep in mind: the UK wants to protect its economy and encourage people to buy British, rather than spend their money with foreign companies / people. That is why duties are levied on imports (to make home-made stuff cheaper than imported stuff). So with that in mind, HMRC will want money on most stuff that is imported regardless of the status of the seller.
In the case you mention the VAT is not being collected by the seller, it’s being paid direct to the HMRC at the border so the VAT status of the seller makes no difference.

 

[Quadro]

I would have thought that this will have quite a big impact on the import market for horses, not only the cost, but the complications as well!

 

[Laafet]

Is VAT payable even if the seller is a non-vatable private seller or small turnover dealer?
.

Yes, I am not an expert but from what we have come across the status of the seller doesn't make any difference.

 

[Gloi]

I would have thought that this will have quite a big impact on the import market for horses, not only the cost, but the complications as well!

Yes ,I know several people who made doubley sure they got their new horses imported before the deadline.