Josh Davis

Hello all

I am considering an ex-EU (Copenhagen) trip to the US, principally to buy an item of jewellery that is considerably cheaper in the states than on Old Bond Street... The saving (even including local sales taxes) would justify the cost of trip, in my opinion.

I am currently factoring in whether the trip is still 'tax efficient'. For the avoidance of doubt, I am not attempting to evade taxes on arrival back in the UK, and I would of course expect to pay import duties of 2.5%, plus VAT.

However, upon arrival home at LHR (from Copenhagen), I expect to be treated as an EU arrival (and therefore not subject to the taxes in the UK). If this is the case, would I be expected to pay the equivalent duties in Copenhagen? Seems like quite a lacuna if the taxes could be avoided so simply.

Any thoughts and anecdotal experience welcome

ba_cityflyer

Yes and yes.

LondonElite

Are we talking about a watch or a ring? Maybe my moral compass is weaker than yours, but I'd just mail the receipt to myself and not bother with any duties.

srbrenna

The shops at T5 are cheaper than Bond St too

Worcester

May be better to declare it in the UK if you can though as the VAT rate in the Netherlands is 21%

Never quite sure at which point and item is used and not chargable (if you have been living in the US for a year and a watch you brought 1 year ago does that need to be declared?)

origin

This is Petrus approach. I haven't read it myself yet so I don't know if the word of tax has appeared. http://www.flyertalk.com/forum/trip-...-drinking.html

Oaxaca

I'm not an expert on customs, but I would think tax and duty is payable wherever in the EU you first clear customs, i.e. where you first go landside. If you were doing a back to back, you'd most likely stay airside in CPH, so don't think you would yet technically have cleared EU customs there. Happy to stand corrected if I am mistaken.

And isn't the standard VAT rate in DK 25%? There are some exemptions and zero rated items, don't know if your jewellery would count.

KenJohn

Assuming you have checked luggage and you are merely in transit (i.e. stay airside) in CPH on the way home, I suspect you actually clear customs in the UK. When you walk through US Customs, your bag-tag will not have a coloured strip indicating you are from an EU flight. Customs ought to be looking out for this.

If you exit CPH landside and re-check your bag to London, then you would have first landed in CPH and will be flying into London as an EU flight.

If you choose to travel hand luggage only ................

Worcester

But of course you would not post about doing that on a public forum, which logs personal details including you IP address.

Just so the OP has the full details, according to HMRC website there is the possibility of the items being seized if not declared.

No idea how they would determine if an item had been purchased abroad unless it was in a unpacked box or with a receipt.

Josh Davis

Thanks for the replies.

I understood that it will not be possible for stay airside at CPH of the return leg of an ex-EU flight that from (e.g.) LAX-LHR-CPH, as my return from CPH to LHR will likely be ticketed separately. Adding the CPH-LHR leg to the ticket would likely vitiate any benefit of an ex-EU flight, no?

Josh Davis

Indeed, but the vendor I am looking for has no branches there

stut

You can physically stay airside at CPH, and both BA and SK have mobile boarding pass apps. However, this only works if you have no checked luggage.

You would need to book CPH-LHR as a separate ticket.

Swanhunter

VAT and duty are payable at your point of entry into the EU. That's why you have the choice of the red and green channel. Once imported into the EU goods are in free circulation and no duty is payable when you cross borders.

LondonElite

A nearly impossible task to prove...it's all hearsay without solid proof. I'm sure I'll get some holier than thou flaming in line with FT SOP!

flatlander

If HMRC get suspicious they can seize the item if they believe duty has not been paid, and it is then up to the traveller to prove duty has been paid. Remember that they have very wide powers when wearing their "Customs" hat.

So in the end they only need to be suspicious, they don't need to prove their side. You need to prove your side - or persuade a magistrate that they've seized it incorrectly. Most magistrates would want a receipt, I suspect.

As a final HMRC addendum, if one evades tax on an item one carries in and out of the UK repeatedly such as a laptop computer or expensive watch, HMRC may challenge this later on and they get decidedly miffed with finding someone out later on; one runs the gauntlet each time.

Back to the original question, which included a declaration of not wanting to avoid tax entirely:

You either enter the EU in CPH, or in LHR. If you stay airside at CPH, you don't enter the EU in Denmark but in the UK, and pay taxes in the UK. If you imagine through checking luggage, it will arrive into LHR on a flight from CPH with a plain (no green edge) tag, indicating it originated outside the EU on this journey. Imagine yourself with no green edging as you arrive in LHR after airside transit in CPH

I am unclear if you are connecting in LHR. If so, you could arrange a longer connection in LHR and land yourself through the red channel, pay tax, turn around and go through security back to CPH then to LHR, and return through the blue channel with your tax-paid items in free circulation in the EU.