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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I purchased a brand new watch though an online dealer. I collected

Customer Question

I purchased a brand new watch though an online dealer. I collected it and paid in London. I was given an invoice which didn't mention vat, duty or even have a vat number. The warranty registration forms were missing from the guarantee booklet.
I discovered the watch had been imported from the Caribbean, and when questioned about duty etc I was told he had used the"margin scheme". And that all requested taxes and vat had been paid.
I researched the margin scheme and apparently it only covers second hand goods. When applicable , the invoice should state so, and include a vat number.
I passed this on to the dealer with a request to see the import documents and customs declaration. All he produced was another invoice with a vat number and margin scheme declaration.
I checked the vat number and it belongs to a second hand car dealership 150 miles away with another name. The dealer claims this to be his company too. I also asked if the "new" watch I had bought was in fact second hand. His reply was that of course it was new, but it was "unworn" ie second hand purposes of import duties and vat.
My question is - do I need to worry? Could I be clobbered taxes if I travel abroad? If I have bought a new product which turns out to be legally second hand, am I entitled to a cash reduction in the price?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

my name is ***** ***** I will help you with this.

Alex Watts :

You wont get clobbered as a consumer no

Alex Watts :

It is at the time of initial import duty and VAT has to be paid

Alex Watts :

Can I clarify anything about this today please?

Alex Watts :

If there is any dispute it would be taken up between HMRC and the seller

JACUSTOMER-ufrofkfo- : Thanks. It looks likely that it was imported possibly as a gift with negligible value. In fact it is a £20,000 watch and the Customs will have a record if the correct amount of vat and duty have been paid against the serial numbers on the watch. It won't be much consolation to me to have to pay £4,000 vat at the airport and then find the dealer has disappeared or gone bust. Shouldn't I confirm the correct taxes have been paid now?
Alex Watts :

It may be that they are not VAT registered of course, but as you say the number is *****

Alex Watts :

I would therefore speak with HMRC and outline your concerns

Alex Watts :

Can I clarify anything else ?

Alex Watts :

If this answers your question could I invite you rate my answer before you leave today.


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