GAME.UK and the VAT tax

Magic Pink

I'm in the US and trying to order a game from GAME.UK and it's charging me the VAT tax. Is this right?

Casual

Yep. Unless it's a business expense.

Magic Pink

No, it's not right actually. No other online site in the UK is doing it.

Mojo_Jojo

Magic Pink wrote:

No, it's not right actually. No other online site in the UK is doing it.

They will have included it in the price already. In the states you have variable taxes so you don't include them, in the UK VAT is always the same, so we include it in prices in the majority of cases.

japan

I know that foreign visitors to the UK can, in theory (i.e. if they use a retailer that participates in the scheme, has the paperwork to hand at the time of purchase, and know what the hell to do with said paperwork) reclaim VAT from HMRC.

I have no idea if that applies to goods purchased in the UK from outside the UK. In principle I think you should be able to, but I doubt there's a simple way to go about it.

What sites aren't applying VAT?

Fyndir

In theory you shouldn't have to pay VAT, or at the very least should be able to reclaim it.

The Rules.

Iceman.USAF

If you're in the US why bother going through a UK site? Is it something particularly hard to find? If you ask for a VAT receipt (I think thats the terminology) you can submit that and get your VAT back if you're not a UK resident.

Kalkino

japan wrote:

I know that foreign visitors to the UK can, in theory (i.e. if they use a retailer that participates in the scheme, has the paperwork to hand at the time of purchase, and know what the hell to do with said paperwork) reclaim VAT from HMRC.

I have no idea if that applies to goods purchased in the UK from outside the UK. In principle I think you should be able to, but I doubt there's a simple way to go about it.

What sites aren't applying VAT?

I think some of the big retailers have sites "based" in the Channel Islands, so may be able to escape all or some of the VAT rate that way

japan

Kalkino wrote:

japan wrote:

I know that foreign visitors to the UK can, in theory (i.e. if they use a retailer that participates in the scheme, has the paperwork to hand at the time of purchase, and know what the hell to do with said paperwork) reclaim VAT from HMRC.

I have no idea if that applies to goods purchased in the UK from outside the UK. In principle I think you should be able to, but I doubt there's a simple way to go about it.

What sites aren't applying VAT?

I think some of the big retailers have sites "based" in the Channel Islands, so may be able to escape all or some of the VAT rate that way

Pretty much all of them do. Also a lot of mail order contact lens places. There's a VAT exemption for goods below a certain value being imported to the UK (about £15 or so think) that was intended to protect the Channel Islands horticultural industry (really) but also conveniently means that you can send the average CD or DVD from there to the UK without incurring VAT.

Magic Pink

Mojo_Jojo wrote:

Magic Pink wrote:

No, it's not right actually. No other online site in the UK is doing it.

They will have included it in the price already. In the states you have variable taxes so you don't include them, in the UK VAT is always the same, so we include it in prices in the majority of cases.

No they aren't. The other places have the exact same price and GAME has a seperate listing for VAT charge. If the cost is included in the price then GAME is charging it twice.

japan

Magic Pink wrote:

Mojo_Jojo wrote:

Magic Pink wrote:

No, it's not right actually. No other online site in the UK is doing it.

They will have included it in the price already. In the states you have variable taxes so you don't include them, in the UK VAT is always the same, so we include it in prices in the majority of cases.

No they aren't. The other places have the exact same price and GAME has a seperate listing for VAT charge. If the cost is included in the price then GAME is charging it twice.

This is more likely just the result of Game being generally overpriced.

It's probably the Channel Islands thing, since some experimenting reveals that if you put something in your basket that costs around a tenner (thus being less than the exemption threshold) then they list the VAT but don't apply it to the total. Play and the like presumably just do this invisibly as they don't list VAT separately on their "basket" page.

Their help pages say: "Standard VAT is charged, where applicable, on all orders shipped. You are responsible for claiming back any VAT that you feel is due to you from your local tax or customs office."

Funnily enough I was talking about VAT today at work. From talking to HMRC it seems that it is, in general, extremely difficult to arrange a transaction in the UK where VAT is not charged. Those times when it happens generally involve vast sums of money and the direct involvement of HMRC, or freaky import/export arrangements involving shipping agencies and bonded warehouses. If VAT doesn't apply to you (if say, you're a business, etc) then it's generally on you to pay it initially and then claim it back.