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My wife has family in the UK and I was thinking about trying to pick up the Polish Masters of the Universe game.
It would be shipped to them, so I don't think there should be any problems if everything is paid upfront. But now I am
hearing about Vats and they are paid at the time of package arrival.

Anyone has experience doing this type of thing and any watch-outs or something I need to tell the in-laws??

You mean Value Added Tax? It's a sales tax, currently 20% of the total price, but in like 99% of cases its already included in the quoted price for a good or service. So you pay it on initial purchase (you should be able to see it as a line item on most sales receipts).

Or are you referring to a different tax?

 Genoside07 wrote:
My wife has family in the UK and I was thinking about trying to pick up the Polish Masters of the Universe game.
It would be shipped to them, so I don't think there should be any problems if everything is paid upfront. But now I am
hearing about Vats and they are paid at the time of package arrival.

Anyone has experience doing this type of thing and any watch-outs or something I need to tell the in-laws??

It's pretty standard for any import unless you are in customs union. Before 2020 shipping from the EU would be counted but now only products in the UK generally are exempt from duties.

VAT is Value Added Tax. It runs at 20% and is placed on almost every product (barring a few exceptions) that is bought in the UK or imported into the UK. In addition there are duties that may need to be paid if you import something into the UK and that depends on the country that it is coming from and what the trade arrangements are.

So if you buy something in the US and then ship it to the UK then the person you are sending it to would have to pay:-

(Duty Costs + Clearance Costs) x 120% (VAT) + (Delivery Costs + Products Costs) x 20% (VAT on value only, you've already paid for the product)

General rule of thumb is take the cost product and work out what 30% to 40% is of that product. That will be the cost the person receiving it will have to pay. However you should check what the import cost for the item is, sometimes it can be very high.

That's what I worry about, I ordered the Polish Archon Studios Masters of the Universe game from the United States to have it shipped to the UK.
But now I am worried about the Vats cost that sounds like I have to pay when it is delivered. Don't want to blindside my relatives, they do know
it's coming but will be shocked if they have to pay something to receive it.

Thanks for the replies.

Not to worry you, but I think if you bring it with you from UK to the US, the US may as well waive a hand and have you pay some import tax.

In theory, one of the purposes of the EU is that VAT is harmonised, and it'll be included in the sale price when you buy it.

Brexit has made this all more complicated in the UK at the moment, as we're no no longer in that harmonised VAT scheme, and there were various delays and exemptions to collecting the tax on sales to/from the EU which may have expired now. What is supposed to happen now is that the seller will charge you UK VAT at the point of sale, and they'll pay that to HMRC at some point. Or they won't and whoever's receiving it will need to pay it. Your best bet is to contact Archon Studios and ask them.

The official advice is here:

https://www.gov.uk/guidance/vat-imports-acquisitions-and-purchases-from-abroad#imported-goods-accounting-for-import-vat

On top of that, there's import duty to be paid - even if the VAT is paid at the time of purchase, whoever's receiving the item in the UK will be liable to pay that if it's picked up by customs. Usually that's dealt with by the importing courier (e.g. Royal Mail), who will then require payment before delivery of the parcel. IF VAT is required, I think that will be included in the required fee.

And then whoever brings it from the UK to the USA may have to pay again to US customs.

The import charge is applied to items valued at more than about £18 (it varies with currency exchange rates.)

If your parcel is caught, you'll be liable for VAT on the itme price and on the shipping cost, and there will be a fee of something like £10 charged by the carrier (Royal Mail or whoever) for the service of collecting these taxes from you.

Archon Studio export directly into the Uk. I have plenty of orders from them, mostly Kickstarter related.

Some tips.

1. They use FedEx and FedEx play fast and loose with the law in an attempt to gouge customers.
To avoid this make sure each order comes to £135 or less, including VAt but excluding shipping (allow a little leeway for currency fluctuations). orders under this total have VAt paid at source, otherwise Fed Ex collects the VAT and in doing so charges numberous other fees. IT IS NOT WORTH IT.

2. When shopping in the UK the price is always inclusive of VAT on the label if VAT is liable. You may get a large price and a smaller VAT inclusive price on the label, but if you only see one price ist must be tax inclusive by law. This is to defend against a customer making a mental commitment to buy something that learn it costs 20% more and fork out for it. i.e if it cost £50 and ends up costing £60 you will more likely buy than if the price tag was honest and said £60 clearly.
Some products have a culture of having separate VAT, computer components are a good example, but to be compliant you must see some small print including the inclusive of VAT price.