Global Shipping Programme

[Idris]

I was looking at a BiN the other day and was struck by the GSP add-on figure. The total cost of the goods (i.e. including p&p) was US$58.20 plus a GSP figure of USS12.68.
Now, VAT in the UK is currently 20% so, if the item were sent to me without GSP, I would expect to be charged US$11.64 import duty but I would also be liable for an additional £8 (ca. US$11) collection fee levied by the Royal Mail. So, via Ebay, I pay US$12.68, but via the Royal Mail I pay US$22.64. My research leads me to believe that the p&p figure has been inflated by about US$5 (presumably to cover the double postage costs) but, even so, that still makes the GSP the cheaper option.
All this makes me wonder whether we have unfairly maligned the GSP in the past, or could it be that Ebay have listened to the complaints of both buyers and sellers and have overhauled it to be a service rather than yet another source of profits?

[Tinman]

Interesting.

[motorman]

The issue for many buyers is that they want to buy from the USA for example and then pray that customs at our end don’t stop it and it is delivered with no import tax or Royal Mail handling fee. I have been fortunate on a few occasions receiving a purchase from abroad that should have incurred customs tax that has slipped through the net. With GSP if import tax is due you are charged up front for it and therefore you won’t benefit like you would with one that slips through the net. Of course I would not condone any attempt to avoid tax, just saying!

[YYS4BOB]

If you pay "up front" the money goes to the the country you are purchasing from economy. If you pay when it arrives here, at least the payment goes to the UK economy!

[AJR]

The trouble is, if you pay the hit this end, anything over £15 (UK money) gets the attention of customs, not only on the item price but the postage and any insurance as well. Then the Royal Mail add on £8 handling fee. If the item is less than £15, even if the postage is (say) £30, the postage is ignored. The postage only comes into the equasion once the £15 is breached, so if your parcel is £15.01 with postage of £30, you'll pay customs on £45.01p
If your item costs (say) £14.99, you'd think you'd be safe, but fluctuations in the $-£ could see the price rise by the time it arrives and customs get their hands on it.
What is annoying also, is that anything bought from within the EU is already taxed and nothing further to pay. Someone from (say) the USA can demand that the VAT is taken off because they will incur tax again at their end BUT .... If anyone from the EU (or UK anyway) buys from USA, you can't demand that their tax is taken off and then we pay VAT on it when it arrives here, so we are being purchase taxed TWICE.
If your USA parcel arrives by Parcel Force, they charge £13 (£5 more than Royal Mail. If a courier delivers the parcel, You don't pay up front like RM and PF, you get a bill up to a fortnight later and costs a lot more. The buying threshold used to be £18 (£36 gift) bit this was reduced to £15 (£30 gift) a few years ago.
Global Shipping works out a bit cheaper, if only by the handling fees charged by RM and others this end.

[Idris]

Of course I would not condone any attempt to avoid tax, just saying!

Tax avoidance is legal. Tax evasion isn't.

[GHOSTHUNTER]

Of course I would not condone any attempt to avoid tax, just saying!

Tax avoidance is legal. Tax evasion isn't.

Shouldn't we invite amazon on board to explain that...

Ghosty.

[motorman]

Of course I would not condone any attempt to avoid tax, just saying!

Tax avoidance is legal. Tax evasion isn't.

That’s what I meant smarty pants.

[kerbside]

If you live in Australia and buy any thing from over seas including getting any thing from Ebay then they charge you the Australian (Goods Service Tax) GST.

George T.