Are there any special considerations when shipping from the US to the UK?
Yes. MyUS is required to collect Value Added Tax (VAT) on merchandise, services, and shipping costs for low-value consumer packages imported into the UK.
How is UK VAT Calculated and Charged?
A 20%* Value Added Tax (VAT) applies to low-value consumer shipments being sent to the UK. The UK government defines low-value shipments as those with a total item value of 135 GBP or less. The item value of a shipment is determined by adding the value of all items contained in a shipment, whether it is just one item, or many.
The VAT cost is based on the total value of a shipment, not just the value of the items inside. This means VAT is assessed on the cost of the items in a shipment AND the cost of any shipping services.
For example, if your Ship Request was for the following:
- a blanket for $100 (74.86 GBP)
- with shipping for $17 (12.73 GBP)
- and $5 insurance (3.74 GBP)
You would be taxed on the total amount of that shipment, $122 (91.33 GBP), with a VAT rate of 20%. This means your VAT cost would be $24.40 (18.27 GBP).
So, the total amount you would pay to MyUS at the time of shipping would be:
- the total shipping costs, $17 in shipping + $5 in insurance = $22 (16.47 GBP)
- plus the 20% VAT cost, $46.40 (34.74 GBP)
- for a total of $68.40 (51.21 GBP)
*While most products will be charged the standard VAT rate of 20% rate, some items may be taxed at a different rate. These items include things like alcohol and tobacco. You can find more information on VAT rates here.