Can someone explain the new customs and vat rules on imports please!

[Richie]

I'm now confused about what is charged and at what level when importing goods from the likes of Amazon.com (http://www.thedvdforums.com/affiliatelink.php?localaffiliateid=25) etc.
In a thread in the bargain forum (about amazon.com deals) I posted in response to someone pointing out that the customs threshold rises from £18 to £105 on Monday:
Yes but VAT is still payable over £18 so it changes nothing, plus you'll still get walloped with the "handling fee" that's the biggest rip-off of all time.
Have I misunderstood completely because this was then posted:
Not true. You won't pay import duty on goods up to £100, and since VAT is charged on top of import duty you pay less VAT as well.
I thought I understood the changes but do I? From my point of view I only really import dvd sets and the like but sometimes there are those that will never be under the £18 rate but will certainly be under the new £105 rate, will I get walloped or not if I purchase those?
Thanks if anyone can just lay it out straight! :)

[caygs]

Threshold for DUTY is raised to £105.

Charges applied as follows: duty applied to the goods (and delivery if over £18). That gives a new total. VAT then applied on top of that.

So what Dogbreath is saying is that you will not have to pay duty under £105, and since VAT is applied on top of that, the amount of VAT will drop.

But you will still have to pay VAT on anything over £18 so you are still going to get spanked. Just a slightly milder tickling than before.

[Richie]

Ah thank you!
So to avoid any charges (plus those pesky evil handling fees) I still need to keep items ordered under £18 basically, which is what I thought!
Many thanks! :thumbs:

[Bapapapa]

I've just posted in that thread.

Dogbreath in this case is talking out of his harris.

As the duty on DVD/CD is 3.5% you'd need to spend £200 to attract import duty in the first place as anything below £7 is waived anyway.

Basically this new limit can only affect orders upto £100 that contains items which attract more than 7% duty (clothes basically) and as said the £18 VAT limit and RM/Courier handling fee still apply so not a lot saved really..

Duty Rates for Common Internet Goods (http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_PROD_009989)

It's like a leadless pencil - pointless. :dork:

[Richie]

Thanks, Baps! Most helpful! :thumbs: