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Buying new furniture UK - vat free and pay gst upon arrival


ackack

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Hi, for various reasons we don't have much furniture in our currently rented out (soon to be sold) house. But still enough that we need shipping.

Checking prices in oz it seems substantially more money to furnish a 3 bed house, to buy children's toys, beds, bikes etc. So, I am tempted to buy pretty much the whole lot. From dyson to sofa, from balance bike to a new bread maker.

 

One of the shipping companies said you can reclaim VAT and then pay GST the other end. It would theoretically mean 20% off on anything bought! then 10% added at customs for importing = savings of 10%.

 

 

Does it work? HaS anyone experience with this?

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You would have to purchase the items at a shop which offered Tax Free Shopping, in order to claim a refund. The shop has to be signed up for the VAT Retail Export Scheme, you can't just purchase items anywhere and get VAT back. To be honest, the shops that offer this are few and far between, so you may struggle to find somewhere to purchase your items. I think John Lewis do it, not sure about any others, I think that it is probably more likely for shops that sell small goods like electronic equipment, sunglasses, perfumes and that sort of thing to be involved. There is more info here http://www.hmrc.gov.uk/vat/sectors/consumers/overseas-visitors.htm.

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It's really confusing... I asked Ikea if we can get VAT back, and they said yes. But if I look at the HM website, good that are being shipped don't qualify. Annoying. Perhaps we just have to pay the 10% the other end and not worry.

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You won't pay the 10% if they are your own personal belongings and you have owned them for more than 12 months. I'm not saying that this is morally right, and it isn't something that we did, but I have heard of people purchasing new things (furniture, tv etc) and just removing the packaging so as they look like older items so as not to pay the GST (having already paid VAT).

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Not worth the hassle , there are plenty of deals to be had out here.

the other thing to take into consideration furniture size etc , if you are renting are you sure the furniture would fit ok into your new home,

 

You're right, we won't know exactly how we will live. That is true for buying things as it would be for already owning them. I am just thinking about the hassle over there, having to shop around - we will be busy trying to settle. This end we will have more time to buy and pack and have it all arrive in one hit. Just thought it might be easier than having to rent a van or pay for delivery on many different trips out there, when we don't know the area, the shops and the quality of things just yet. Suppose it comes down to personal preference in the end.

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You won't pay the 10% if they are your own personal belongings and you have owned them for more than 12 months. I'm not saying that this is morally right, and it isn't something that we did, but I have heard of people purchasing new things (furniture, tv etc) and just removing the packaging so as they look like older items so as not to pay the GST (having already paid VAT).

 

Thanks, that makes sense. We'll have to have a think about that. I don't like cheating and prefer just saying that it's new. It's annoying, we have things we used for our son, and they won't be 12 months old by the time we ship - with those I feel that I can say we have had them 12 months, though.

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You have to take into consideration that many items (if bought new or within a few months of shipping) will be scrutinised by Australian Customs and they can charge you over and above the fees that your shipping company have quoted for customs clearance. This could effectively mean that any savings you make from purchasing new here and shipping to Australia are wiped out.

 

I would suggest perhaps trying to get in touch with Australian customs to see what they would charge if new items were shipped and whether they would have to see receipts/proof of purchase (I dont know how they determine if items are personal and owned for over 12 months or not) and if it is quite expensive then it might not be worth it.

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