samfrost
New Member
Posts โข 783
Likes โข 526
June 2014
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VAT to USA?, by samfrost on Oct 29, 2018 1:24:12 GMT 1, Not sure how many tax experts are lurking on the forum, but here is the situation:
I recently purchased a work from a smaller UK auction house. I am based in the USA and having it shipped to the USA.
Should my invoice include VAT? I have purchased on numerous occasions from larger auction houses and never paid VAT.
This auction house claims that VAT should be charged and that I would need to "claim it back". Is this true and if so, what is the process for "claiming back" VAT for a US citizen?
Not sure how many tax experts are lurking on the forum, but here is the situation:
I recently purchased a work from a smaller UK auction house. I am based in the USA and having it shipped to the USA.
Should my invoice include VAT? I have purchased on numerous occasions from larger auction houses and never paid VAT.
This auction house claims that VAT should be charged and that I would need to "claim it back". Is this true and if so, what is the process for "claiming back" VAT for a US citizen?
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VAT to USA?, by Kevin Anderson on Oct 29, 2018 1:58:51 GMT 1, As far as I know, we donโt have a VAT in the states. The closest would probably be sales tax,but I donโt see how that would apply to an international transaction. I am by no means an authority on tax related matters.
As far as I know, we donโt have a VAT in the states. The closest would probably be sales tax,but I donโt see how that would apply to an international transaction. I am by no means an authority on tax related matters.
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Pipes
Junior Member
Posts โข 2,430
Likes โข 2,857
January 2012
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VAT to USA?, by Pipes on Oct 29, 2018 2:01:22 GMT 1, Sounds wrong to me - its shouldn't be charged in the first place.
Just based on my experience anyway.
Sounds wrong to me - its shouldn't be charged in the first place.
Just based on my experience anyway.
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Laugh Now 10
New Member
Posts โข 696
Likes โข 984
February 2017
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VAT to USA?, by Laugh Now 10 on Oct 29, 2018 2:22:58 GMT 1, No VAT, but once it clears customs you will have to pay sales tax.
No VAT, but once it clears customs you will have to pay sales tax.
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lukin56
New Member
Posts โข 89
Likes โข 56
October 2018
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VAT to USA?, by lukin56 on Oct 29, 2018 2:44:25 GMT 1, No VAT, but once it clears customs you will have to pay sales tax.
This. They should not be charging you VAT.
No VAT, but once it clears customs you will have to pay sales tax. This. They should not be charging you VAT. |
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jluhiex
New Member
Posts โข 402
Likes โข 223
December 2016
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VAT to USA?, by jluhiex on Oct 29, 2018 6:25:52 GMT 1, Some auction houses will want proof that the item was exported. You will need to have fedex/dhl or whatever carrier you used provide an export document and then the auction house will refund you the VAT.
The other issue is use tax for your particular state. Similar to buying online items from out of state retailers, technically you are supposedly to report this to BOE or on your state income tax return. If it is a small item or the item doesnโt get flagged at customs youโre totally fine. People that are purchasing $10000+ pieces of art will typically get flagged and the carrier will relay the declared value to said agency. If you just happen to not report it and you get caught there is the use tax owed plus a 10% penalty.
Some auction houses will want proof that the item was exported. You will need to have fedex/dhl or whatever carrier you used provide an export document and then the auction house will refund you the VAT.
The other issue is use tax for your particular state. Similar to buying online items from out of state retailers, technically you are supposedly to report this to BOE or on your state income tax return. If it is a small item or the item doesnโt get flagged at customs youโre totally fine. People that are purchasing $10000+ pieces of art will typically get flagged and the carrier will relay the declared value to said agency. If you just happen to not report it and you get caught there is the use tax owed plus a 10% penalty.
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Winks
Junior Member
Posts โข 2,773
Likes โข 3,581
April 2016
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VAT to USA?, by Winks on Oct 29, 2018 7:16:03 GMT 1, Exports outside the EU are outside the scope of U.K. vat.
The US will not have a mechanism whereby you can claim U.K. vat.
Should not be charging you vat.
Exports outside the EU are outside the scope of U.K. vat.
The US will not have a mechanism whereby you can claim U.K. vat.
Should not be charging you vat.
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Iqra'a
New Member
Posts โข 608
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November 2013
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VAT to USA?, by Iqra'a on Nov 1, 2018 14:16:05 GMT 1, No VAT. Import tax is a grey area depending on who is the carrier (the only time I've ever paid import tax was the one time I had something shipped via DHL). Regardless, without a doubt, you don't charge VAT to US buyers.
No VAT. Import tax is a grey area depending on who is the carrier (the only time I've ever paid import tax was the one time I had something shipped via DHL). Regardless, without a doubt, you don't charge VAT to US buyers.
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soupy
Junior Member
Posts โข 2,108
Likes โข 2,611
April 2014
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VAT to USA?, by soupy on Nov 1, 2018 14:39:55 GMT 1, no VAT for US buyers... more often than not the gallery refunds it or doesn't charge it in the first place. however, i have struggled with UK purchases from galleries who charge it and then say they can't refund it. i guess it is up to you to go through the process of claiming it back from the proper agency or something but have never done it.
www.gov.uk/reclaim-vat
no VAT for US buyers... more often than not the gallery refunds it or doesn't charge it in the first place. however, i have struggled with UK purchases from galleries who charge it and then say they can't refund it. i guess it is up to you to go through the process of claiming it back from the proper agency or something but have never done it. www.gov.uk/reclaim-vat |
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jkesquire
New Member
Posts โข 504
Likes โข 646
May 2017
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VAT to USA?, by jkesquire on Nov 1, 2018 16:14:00 GMT 1, No Vat for sure, and from my research and understanding, original works of art may be exempt from import tax as well. I have an original work headed my way from the UK and it is currently held up in Heathrow customs as it is a fairly high value piece...I've made some calls to tax attorney colleagues and they believe because it is a unique 1/1 work done by hand, it would be exempt from import tax. Prints are another story and likely subject to import tax
No Vat for sure, and from my research and understanding, original works of art may be exempt from import tax as well. I have an original work headed my way from the UK and it is currently held up in Heathrow customs as it is a fairly high value piece...I've made some calls to tax attorney colleagues and they believe because it is a unique 1/1 work done by hand, it would be exempt from import tax. Prints are another story and likely subject to import tax
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qest
New Member
Posts โข 612
Likes โข 707
March 2018
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VAT to USA?, by qest on Nov 1, 2018 16:26:33 GMT 1, Prints are also duty-free.
I was looking at Cristian Walter (Spain) website the other day and it looks like they charge VAT to US not only on the artwork, but on the shipping cost.
Prints are also duty-free.
I was looking at Cristian Walter (Spain) website the other day and it looks like they charge VAT to US not only on the artwork, but on the shipping cost.
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