Tax refund when buying medical items from abroad

[paulliljeros]

Hi there.
I am investigating the feasibility of self funding a Dexcom G4 CGM system, but am finding purchasing in the UK is too expensive for me. I have found a company in Germany from which I can order over the internet, and will save me approx. £500 on the starter kit, but they add Tax at 19% onto the invoice, obliterating the savings. I have spoken to the German company who have explained they must add Tax on but that if I get the invoice stamped by customs in the UK, they will refund the Tax.

Can anyone advise if they have had similar experience, and knowledge of how to get the invoice stamped after deliver in the UK or German Tax refunded please? I am a British citizen, working and living in the UK if this helps.

Thank you very much in advance, Paul

 

[Avocado Sevenfold]

Hi Paul

If the German 19% VAT obliterates the saving, is it not easier to just buy one here without paying UK VAT? I just added one to my basket on a UK site and was prompted to fill in a VAT exemption form which would save me 20% (I am not buying one, btw) Maybe I have the wrong end of the stick. Hope you get one

 

[britishpub]

A UK business cannot reclaim VAT on a purchase made in Germany, so I would assume the same is so for an individual.

 

[paulliljeros]

Hi Paul

If the German 19% VAT obliterates the saving, is it not easier to just buy one here without paying UK VAT? I just added one to my basket on a UK site and was prompted to fill in a VAT exemption form which would save me 20% (I am not buying one, btw) Maybe I have the wrong end of the stick. Hope you get one

Hi, Thank you for the response. Sorry for the lack of details. Hopefully this will help clarify. The kit I will need to buy periodically are:
1 x transmitter
If bought in the UK (Advancedtherapeutics.com): GBP350
If bought in Germany (diashop.de): EUR399 (approx. £289)
4 x sensors
If bought in the UK: GBP260
If bought in Germany: EUR289 (approx. £207)
However, The prices on the German website then add 19% tax at checkout which the representative explained would be repaid if I got my invoice stamped by customs in the UK.
the UK shop prices above are also VAT free and so the actual price is £350 +20% and they then give you the form for the VAT reclaim.

 

[AndBreathe]

Hi there.
I am investigating the feasibility of self funding a Dexcom G4 CGM system, but am finding purchasing in the UK is too expensive for me. I have found a company in Germany from which I can order over the internet, and will save me approx. £500 on the starter kit, but they add Tax at 19% onto the invoice, obliterating the savings. I have spoken to the German company who have explained they must add Tax on but that if I get the invoice stamped by customs in the UK, they will refund the Tax.

Can anyone advise if they have had similar experience, and knowledge of how to get the invoice stamped after deliver in the UK or German Tax refunded please? I am a British citizen, working and living in the UK if this helps.

Thank you very much in advance, Paul

There is a scheme in UK whereby if one is ordering goods from a UK company, for delivery overseas, without the end user touching or enjoying the benefit of them before their release by foreign customs and excise, whereby the UK supplier is able to charge the customer net of VAT, with local taxes payable in the receiving country.

I have done this several times. For items for out boat, it's transitory nature allows us to import goods without paying UK VAT equivalent, but items for our home are immediately subject to the local tax at 20%, so it renders the transaction revenue neutral, subject to the net costs, carriage charges and local (That end) Customs transaction charges.

For us, we have saved money on some high value items, and other times it has allowed us to access goods not otherwise available locally.

Could you call HMRC and ask them if such a reciprocal arrangement exists?

If such an arrangement exists, then once you've done it once, it's easier to achieve second and subsequent times.

 

[Avocado Sevenfold]

@paulliljeros Having looked at the kit, in the UK we use mmol/L, in Germany they use mg/dL. Is this a consideration?


As for the VAT, my gut feeling is that customs would not be interested as you are dealing with an EU seller (I will tag an accountant @GeoffersTaylor ) but the issue may be one of proving to the German company that you qualify for exemption due to your condition.

 

[CollieBoy]

@paulliljeros Having looked at the kit, in the UK we use mmol/L, in Germany they use mg/dL. Is this a consideration?

.

I'm sure if @paulliljeros doesn't mind & can translate figures it should be OK, also the sensors & transmitter will be unit neutral & only the receiver will have the unit type problem (correct me if I'm wrong)
I leave the VAT problem to those currently working in that field (I no longer do VAT accountancy work_)

 

[phoenix]

This looks to be the right place to ask for help https://www.gov.uk/financial-help-disabled/vat-relief

I don't know if it would apply to VAT relief but I believe that big companies now have to charge the VAT of the country to which the product is sent. (eg when I buy a book sent from Amazon UK where books are zero rated, they add on the French TVA ) https://www.amazon.co.uk/gp/help/customer/display.html/ref=hp_left_v4_sib?ie=UTF8&nodeId=201238080

 

[paulliljeros]

This looks to be the right place to ask for help https://www.gov.uk/financial-help-disabled/vat-relief

I don't know if it would apply to VAT relief but I believe that big companies now have to charge the VAT of the country to which the product is sent. (eg when I buy a book sent from Amazon UK where books are zero rated, they add on the French TVA ) https://www.amazon.co.uk/gp/help/customer/display.html/ref=hp_left_v4_sib?ie=UTF8&nodeId=201238080

Thanks everyone so far and in particular Phoenix,
The link to HMRC looks like exactly what I am looking for in the first instance. Essentially I think this will allow me to
1) import the goods without incurring a UK VAT charge
2) provide proof to the German supplier that I am exempt from VAT charges, and gaining me the Tax refund.
Please do continue to comment if anyone has any further info or advice, and I will update with whatever I find out in the coming week.

 

[GeoffersTaylor]

@paulliljeros Having looked at the kit, in the UK we use mmol/L, in Germany they use mg/dL. Is this a consideration?


As for the VAT, my gut feeling is that customs would not be interested as you are dealing with an EU seller (I will tag an accountant @GeoffersTaylor ) but the issue may be one of proving to the German company that you qualify for exemption due to your condition.

Sorry, not my area.

 

[paulliljeros]

I now have the answer which sadly is not what I wanted to hear! In short I will have to pay tax. A user on moneysavingexpert.com
http://forums.moneysavingexpert.com/showthread.php?t=5348786&highlight=

very kindly responded with the following explanation:

VAT rules for sales between EC member countries (simplified!)

where the customer is a consumer (ie you) and not a company (you are not) then the supplier must operate the rule as follows:

either: the supplier must charge VAT based on the rules and rate applicable in whichever country the supplier is based, in this case Germany

or, only where the total value of sales by the supplier into the UK exceeds a total value threshold, must the supplier then register for VAT in the UK and charge UK VAT

based on what the supplier has told you they are not over the threshold and so must follow German VAT rules. I have no idea if Germany has any special rates/ relief for pharmaceutical items - it would appear not based on what they have told you

EC VAT rules are deliberately designed to prevent consumers being able to buy items in another EC country without paying VAT otherwise the system would be stupid since no one would buy stuff in their own country if they could buy it tax free from another EC country

 

[tim2000s]

Ah well. When I was playing with diashop.eu, I found that the prices stated on the website were inclusive of VAT, so you would still make the savings. The Dexcom transmitter, for example is €399 including the 19% VAT charge in Germany. At current exchange rates, this is £288, which is a saving on the £325 ex VAT that AT charge.

 

[paulliljeros]

Ah well. When I was playing with diashop.eu, I found that the prices stated on the website were inclusive of VAT, so you would still make the savings. The Dexcom transmitter, for example is €399 including the 19% VAT charge in Germany. At current exchange rates, this is £288, which is a saving on the £325 ex VAT that AT charge.

Thanks Tim, you are correct. In all my searching I have got confused and misread the prices... Thank you! Can I ask where you and everyone else got their receivers from? that is the one item I am still struggling to source cheaper than in the UK either individually or as part of what appears to be an over inflated starter kit?

 

[tim2000s]

Thanks Tim, you are correct. In all my searching I have got confused and misread the prices... Thank you! Can I ask where you and everyone else got their receivers from? that is the one item I am still struggling to source cheaper than in the UK either individually or as part of what appears to be an over inflated starter kit?

Hi Paul, I haven't got a DexCom. I made the decision to build an xDrip system, and attempt to recycle an old transmitter, when I baulked at the prices from even diashop. They are a good source for purchasing reduced price sensors though, when I finally get the Dex transmitter hacked. A few links below outlining what I was trying to do and the links to suppliers and details of how to do it are included.

http://www.crick-tech-munch.blogspot.co.uk/2015/09/diy-glucose-monitoring-next-steps-time.html

http://www.crick-tech-munch.blogspot.co.uk/2015/09/recycling-dexcom-transmitter-hidden.html

http://www.crick-tech-munch.blogspot.co.uk/2015/09/replacing-freestylelibre-building-diy.html