I want to buy VAT free. I’m located in the UK so can (and do) drive to ‘the Continent’.

I know it’s theoretically possible but wondered if anyone has experienced it recently? The only post I can find here is from 2010.

While I don’t intend to break any rules (obv.) if it’s possible to get the export stamp, or the retailer just sells without VAT, without paying the UK duties that’s clearly an advantage.

I recently ordered some Märklin stuff and the import duties etc (plus a few charges that the courier company just added on for no legitimate reason) make this hobby too expensive. The cost more than doubled.

So looking for a grey zone solution, or white zone if it exists.

A German friend reports that his local dealer says the US and UK markets are now dead due to tariffs and crack-down on duties on small orders. Not good for Marklin, or us.

Hi David is correct if the total value of the package including the post is less than £135 then no UK VAT is applicable. I would recommend Modellbahn-Lippe who will deduct German VAT and post to the UK. To ensure you get your parcel below the £135, HMRC publish the exchange rate that will be applicable for the month in which the goods are shipped.

If you go over the £135 the whole package becomes liable for VAT. £135.01 becomes very expensive! If the parcel comes into a route where it will be delivered by parcel force. You will get a letter from Parcel Force advising how much the VAT is and the £12.00 fee for dealing with the VAT. Parcel force will not deliver the parcel until the VAT is paid. This can be paid on line using a debit/credit card. Lippe uses FedEx for its deliveries. Like Parcel Force FedEx charges various fees on top of the VAT for handling the VAT. Their fee structure is quite complex and I always double check. However FedEx will deliver without the VAT being delivered. If unpaid they send reminders and then escalate with legal threats.

Driving to Europe to pick up is different, or indeed if you are flying. First you have to find the store that will be willing to do the paperwork for you. You pay the full price of the goods including the German VAT. The store then issues paperwork which will allow the VAT to be reclaimed. I have only ever done this with Lippe. They have sent parcels to me in German hotels with the documentation. This document has to be signed and stamped by the customs office at the point of departure from the EU. The goods have to be available to show the customs officer. The signed letter is returned to Lippe who can refund the VAT to your credit card.

Arrival in the UK. When you bring goods from Europe into the UK the VAT threshold is higher - about £350 I think. Anecdotal evidence suggests that Border Force is not that interested in model railway items you are bringing back.

Hope this helps

The customs office at Eurotunnel is not obviously signposted around the terminal until you are standing right in front of it. It is down the right hand side of the building just before you reach that set of toilets.

Note that some shops don't provide a form to reclaim the VAT, but supply a form from another company that does the VAT refund. That company will take a slice of the refund to cover their operating costs. If you buy items at the Marklin Museum shop and ask for a tax form this is what they give you, they don't handle any refund themselves.

Any form you present to be stamped will need to have the till receipts stapled to it, and the originals of those receipts need to go back with the form to the refunding agency (shop or other agency). Always take a photocopy or photo of any such receipts before sending them back.

There is a lower limit of 100 Euro per transaction that needs to be met for it to be considered for VAT refund. Items under this amount will not get a refund. The refund only applies to goods taken out of the EU, you cannot get refunds for services within the EU (such as hotel stays, meals, transport, etc).

Dealers in Germany/EU will only remove VAT for items shipped as they have to fill out customs paperwork to support that. They will not deduct VAT for pickup orders (in store).
They may issue an invoice which will entitle the buyer to a refund at special locations (airports/train stations). In order to qualify for a refund, you have to fulfill certain conditions (ticket, etc).
I know that on a few occasions (2000-2020), the wait to process a refund claim was longer than the time needed for departure.

I don't have any specifics on UK imports as I am Canadian.

Regards

Mike C

That depends who you are and how good a customer you are! My dealer will do this for me . . .

Personal relationships are key to getting good service, in my experience.


Nigel