Do You Have To Pay Import Tax For Using Eglobal Central Services?
By
HuutiMoney
If you are wondering whether or not you have to pay import tax for using Eglobal Central Services, you will find the answer to your question in the following blog post. In addition to this, we will also discuss the reasons why import taxes are implied on inward shipments of goods, how import taxes are calculated and review the potential consequences of not paying import tax in the UK.
Do You Have To Pay Import Tax For Using Eglobal Central Services?
While Eglobal Central Services claimed on certain online platforms that they don’t charge their customers additional amounts in excess of the price of the products they purchase, it is highly likely that one would have to pay import tax on items purchased from Eglobal Central Services (or any other e-commerce website, for that matter).
However, this depends on the following two factors:
- the value of the goods being imported into the UK
- the country from where they are being shipped
If the value of the goods being shipped into the UK is more than £135, an import duty will be levied on them. In addition to this, there may be additional charges based on the country from which they are shipped.
Eglobal Central Services and other e-commerce websites usually collect import tax on your behalf and remit it to the UK government. The amount is added to your online shopping receipt.
That said, one may still have to pay other fees, such as customs clearance and handling fees. These fees vary based on the services you choose from Eglobal Central Services.
However, according to customer reviews posted on Trust Pilot, Eglobal Central Services has shut down its operations.
Why Do You Have To Pay Import Tax?
There are two basic reasons why you have to pay import tax on the items you purchase from outside the UK. Firstly, import tax ensures that goods imported from other countries do not negatively impact the sales and prices of locally produced goods. This helps maintain fair competition in the local market, ultimately benefiting consumers.
Secondly, import tax serves as a source of revenue for the government. The funds generated from import taxes contribute to financing public goods, such as schools, hospitals, and general infrastructure in the country.
Import tax is applicable whether you choose to buy online from another country while living in the UK, buy from another country and send it back to the UK or you receive item(s) from outside the UK as a gift.
How Is Import Tax Calculated?
Customs charges for imported goods in the UK are calculated based on the following factors:
- the country where the goods were produced
- regulations specific to the country of import
- description and end-use of the Product
- the value of the goods being imported
- any applicable trade agreements between the UK and the exporting country.
- the product’s HS code, which is an internationally recognized classification system for traded goods
After determining the initial value of the goods being shipped, additional costs like transportation, insurance, and others are added. This total amount is called the Customs Value, which is used to calculate the Customs Duty.
Depending on the type and quantity of the goods, there may be additional charges like Excise Duty, Anti-Dumping Duties, and CAP (Common Agricultural Policy), which will increase the Customs Value.
Once the Customs Value has been determined, the Value Adjustment amount, also called VAT, is added to it to calculate the final VAT value.
Below are details of these charges and their rate of application in the UK:
| Disbursement Fee | Duty and Tax |
|---|---|
| 30% of the Duty & Tax amount with a minimum of 4.25 GBP | 0 – 42.50 GBP |
| A flat fee of 12.75 GBP | 42.50 – 510 GBP |
| 2.5% of the Duty and Tax amount | Above 510 GBP |
If you plan to have something shipped from outside the UK, you can use a web-based Import Tax Calculator to get an estimate of the amount of import tax due on your parcel.
Are There Any Consequences of Not Paying Import Tax?
Yes, there are consequences of not paying import tax. If you fail to pay import tax on goods purchased from outside the UK, your parcel will be held by UK Customs for a period of three weeks. Should you still be unable or unwilling to pay the import duty, the goods will be returned to the sender. This rule applies to both personal and commercial imports.
In certain cases, the HMRC (Her Majesty’s Revenue and Customs) may penalise the receiver if they knowingly bring goods into the UK, are fully aware of the potential import tax, and refuse to pay when the goods arrive in the country.
When items are couriered across borders, they undergo a customs check to ensure they are not on the restricted or banned items list. Additionally, the appropriate amount of import tax is levied on these goods.
This includes scenarios such as buying online from another country while residing in the UK, purchasing from another country and sending it back to the UK, or receiving items as gifts.
Conclusion:
The above discussion highlights two important facts; (a) Eglobal Central Services has ceased its operations, and (b) you are required to pay import tax irrespective of the e-commerce service you use for shipping goods into the UK. However, the amount of import tax that is due on your shipment coming into the UK will depend on several factors and your e-commerce service provider should be able to provide you with an estimate before you confirm your shipment.
References:
Beware of additional import charges when shopping online!
Tax and customs for goods sent from abroad: Tax and duty – GOV.UK
EGlobal Central Europe Reviews | Read Customer Service Reviews of eglobalcentraEU eu