VAT and other duties

**Pingu** · 01-25-2006, 08:47 AM

I was just looking at a certain site and thinking of ordering a couple of libraries, and then noticed the small print at the bottom of the page, saying that the buyer should expect to pay the relevant duties in whatever country they are ordering.

And it occurred to me that this is stupid, and we as a sampling community can get around it. The point is that duties are paid because you are adding something of a certain value to the total content of your country (or state). But the physical product that is delivered to us isn't what's worth so much. Nor do we even own it - it's just supplied as a way of enabling us to exercise the license that we're paying for. The license is certainly worth the money, but it isn't a physical thing, it doesn't reside in the package that's delivered, and thus doesn't pass customs.

The actual physical product in the package is only worth the price of a few blank CDs. A couple of people I've ordered from have been kind enough to realise this, and written a value of $5 or so on the declaration (I believe Diva was one example), so that I didn't end up paying duty or VAT. My goodwill towards those people, as developers, has increased accordingly.

Please could other developers take note. The price declared on the customs sheet should be what it will cost you to send another copy if it goes missing in the post.

**Daryl** · 01-25-2006, 08:58 AM

According to UK legislation there should be no duties payable on Sample libraries. Unfortunately some developers haven't read the various documents and therefore do not label the product correctly. The labelling will vary, depending on the country that they are shipping to, but they really should be able to sort this out, particularly as they have been told on may occasions.
Regarding VAT, I'm afraid that it is payable on Sample libraries, even though it is only a licence. If this was not the case, then performers and many others would not be required to charge it as there are no physical goods in these cases.

D

**geronimo001** · 01-25-2006, 09:10 AM

Good point, both of you.

**fitch** · 01-25-2006, 10:05 AM

interesting read..

the amount of import duty i have had to pay from buying samples in US is incredible

i could have had me another top notch orchestral library with it LOL

**peter269** · 01-25-2006, 10:15 AM

Speaking for Alexander Publishing/TrueSpec Systems, we are required by LAW to put down the value of the item. If we don't do that, we can lose our business license. In some countries we are required by THEIR import law to include a copy of the purchase invoice to verify the value claim we put on the forms. We're seeing this tightening up around the world.

Once tangible property ships outside a country, it's now an import/export issue and must be accounted for.

BTW, this is also true in the US for sales tax. Some sites say "no sales tax" if you're purchasing outside of that state. But the tax code for nearly all the states says that if you purchase a major item for your business outside of your home state, you have to declare it on your tax forms and pay the local sales tax.

There is a great difference between sales tax AVOIDANCE and sales tax EVASION.

**Herman Witkam** · 01-25-2006, 10:25 AM

I got a FedEx bill a couple of months after ordering Stormdrum from the U.S. (Eastwest online store) They managed to mis-spell my name, adress and town, but the bill was still delivered. Had I known that there would be any duties I wouldn't have ordered there.

**geronimo001** · 01-25-2006, 10:45 AM

Same here.

**Daryl** · 01-25-2006, 12:12 PM

Originally Posted by fitch

interesting read..

the amount of import duty i have had to pay from buying samples in US is incredible

i could have had me another top notch orchestral library with it LOL

This is my point; under UK law I shouldn't have been charged duty for my EW purchases either.

D

**Daryl** · 01-25-2006, 12:15 PM

Originally Posted by peter269

Speaking for Alexander Publishing/TrueSpec Systems, we are required by LAW to put down the value of the item. If we don't do that, we can lose our business license. In some countries we are required by THEIR import law to include a copy of the purchase invoice to verify the value claim we put on the forms. We're seeing this tightening up around the world.

Once tangible property ships outside a country, it's now an import/export issue and must be accounted for.

BTW, this is also true in the US for sales tax. Some sites say "no sales tax" if you're purchasing outside of that state. But the tax code for nearly all the states says that if you purchase a major item for your business outside of your home state, you have to declare it on your tax forms and pay the local sales tax.

There is a great difference between sales tax AVOIDANCE and sales tax EVASION.

I agree, however as an export company I'm sure that you would agree that it is also your responsibility to ensure that the packages are labelled correctly for the country to which you are exporting. I'm not accusing you of anything you understand, I'm just fed up with trying to explain it to some US company employees :>(

D

**hywyn** · 01-25-2006, 02:56 PM

Regarding labelling, If I'm about to order Garritan Orchestral Strings from the US web-site to be shipped to UK, what therefore should I ask them to place on the package. I presume "Sample Library", but I just bought six CD's from Sony Media in the US and have received a FedEx bill. I didn't double check the package labelling, as the bill arrived a week later, but the package must have been labelled as a Sample Library, or what else would they call it? Is there something more specific?