Shopping on AliExpress has become increasingly popular in the UK due to its wide variety of affordable products. However, one common question among buyers is whether they need to pay taxes on their purchases. Here’s a comprehensive guide to understanding tax obligations when buying from AliExpress in the UK.
1. Import VAT and the UK’s Post-Brexit Changes
1.1 Import VAT on Low-Value Goods
- Since January 1, 2021, the UK government requires import VAT to be paid on goods imported from outside the UK, including purchases from AliExpress.
- Threshold: Import VAT is applicable on all goods valued at £135 or less.
1.2 VAT Collection by AliExpress
- For orders valued at £135 or less, AliExpress automatically collects VAT at the point of sale and remits it to HMRC.
- The VAT rate is generally 20%, which is included in the price you see at checkout.
2. Duties and Taxes on High-Value Items
2.1 Orders Above £135
- For items valued over £135, you may need to pay additional charges:
- Import VAT: Charged at 20% of the item’s value.
- Customs Duty: This varies based on the product type and value but typically applies to items over £135.
- Handling Fee: A courier service like Royal Mail may charge a handling fee (around £8–£12) for processing your package through customs.
2.2 Payment of Taxes
- If your order exceeds the £135 threshold, taxes and duties are not collected by AliExpress. Instead, you will be notified by the courier service and must pay these fees before receiving your package.
3. Key Factors to Consider
3.1 Declared Value of Goods
- Sellers on AliExpress declare the value of goods for customs purposes. Ensure they provide an accurate value to avoid penalties or delays.
3.2 Combined Shipments
- If you purchase multiple items shipped together, their combined value might exceed £135, making the order subject to additional taxes.
3.3 Gift Exemptions
- Gifts valued under £39 are exempt from VAT. However, this exemption does not apply to items purchased from AliExpress, as they are not classified as gifts.
4. How to Verify Tax Charges on AliExpress
- At checkout, AliExpress will display a breakdown of costs, including VAT for orders under £135.
- Check your invoice or order confirmation email to ensure VAT has been charged.
5. What Happens if VAT is Not Collected?
- If VAT is not collected at checkout for orders under £135, you may need to pay the VAT and additional processing fees when the parcel arrives in the UK.
- The courier service will contact you with the payment details.
6. Frequently Asked Questions
6.1 Do I Always Have to Pay VAT on AliExpress?
Yes, VAT applies to all goods imported into the UK. For orders under £135, AliExpress collects VAT directly.
6.2 What If I Refuse to Pay the Import Taxes?
If you decline to pay the additional import taxes or duties for high-value goods, the courier may return the package to the seller. Refund policies vary depending on the seller’s terms.
6.3 Are There Any Items Exempt from VAT or Customs Duties?
Certain items may be exempt, but most consumer goods from AliExpress are subject to VAT. Verify specific exemptions with HMRC.
7. Tips for Smooth Shopping on AliExpress UK
- Check VAT Details: Ensure VAT is included in your order summary for purchases under £135.
- Verify Customs Duties: For high-value items, check the potential customs duties using an online calculator or the UK government website.
- Choose Reliable Sellers: Opt for sellers who provide accurate invoices and shipping documentation.
- Track Your Parcel: Stay informed about customs clearance and any applicable charges through your courier’s tracking system.
Conclusion
Yes, you do pay tax on AliExpress purchases in the UK. VAT is automatically collected for orders under £135, while higher-value items may incur additional customs duties and fees. By understanding the UK’s tax regulations and planning your purchases accordingly, you can avoid unexpected charges and enjoy a hassle-free shopping experience on AliExpress.