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Originally Posted by Tezcatlipoca
AFAIK, it is based on the declared value on the Customs Declaration attached to the package, not on what they think it is worth. Unless, of course, the delcared value is suspiciously low & they open it up to have a look.
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They use that as a guide, but at the end of the day, that say what it is worth, and their descision is final.
And about the VAT, from the official site it says:
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Originally Posted by http://www.hmce.gov.uk/public/shopping/shopping.htm
However, VAT is payable (if due) either in the EU country of purchase, or in the UK if the EU supplier is UK VAT registered.
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If you bought something from the US, it is not an EU country, and if it isn't UK VAT registered (i'm guessing most aren't), then surely you won't pay VAT?