Government Tax rules on Jeweler items in London, UK
The UK has a long tradition of jewellery making, with some of the best artisans in the world producing unmatched work. This land takes pride in creating perfectly handcrafted jewelries’ and invites customers from various parts of the world. The famous Hatton Garden is one of the go-to sites for diamond shopaholics.
Importing Jewellery from the US to the UK:
Jewellery imports from the US to the UK are subject to similar taxes and levies as those from the EU. One thing to remember is that few US shops charge UK VAT, whereas some do not. The Value Added Tax rate is 20% of the engagement ring’s cost. Therefore, one needs to be mindful while calculating the final cost or comparing to local UK jewellers, who add UK VAT to their advertised pricing. Despite this additional VAT, US retailers come at a higher price than UK retailers.
Importing Jewellery from Europe to the UK:
Jewellery imports from the EU to the UK are subject to UK VAT, whether you own lab grown diamond ring or organic. It is generally paid to the courier operator before they transfer the goods to the customer. VAT is applicable on packaging, posting, insurance and import duty other than the value of the jewellery. A 2.5% standard import duty is applied to purchases over £135.
Multiple other factors play a role when buying anything crossing an international border, especially for high-cost items like jewellery.
Customer protection and Insurance
Foreign retailers are not covered under the UK’s Sale of Goods Act. This means the buyer of an imported product possesses less protection when compared to a buyer of a UK company. Usually, the insurance amount is included in the cost of the ring.
While many online sellers have reasonable return policies (typically lasting 30 days), confirming if the 30-day period begins when the item is received or when it is dispatched is crucial. In the case of the second scenario, the time available to receive, review and return the product will be significantly less. If the customer decides to return the ring for any reason, they are expected to inform the service team and request a return authorization number. However, the return shipping and insurance should be arranged by the customer. Once the returned ring is accepted, refunds through the original payment method take around two weeks.
The customer has to ensure that they understand what the jewelers’ warranty covers and check internet reviews to determine the retailer’s after-sale support quality.
When it comes to rings, especially engagement rings, minor modifications are frequently needed to fit the finger correctly. The procedure of mailing it back to them may be more expensive than having it fixed locally, even though many foreign vendors provide free adjustments.
Most jeweler’s provide free worldwide shipping through a company like Fed Ex or UPS. After the ring is manufactured, which can take anywhere from 1-3 weeks, the shipping takes roughly 2-4 business days.
Foreign Exchange Rate
If the pound is performing well versus the dollar, it can significantly impact the ring’s price and make it an even better option. However, if the dollar has the upper hand, importing jewellery will be a bad deal.
In some circumstances, importing from abroad can make sense, but it must be carefully studied to ensure that the overall purchasing experience is favourable and worth the extra time and effort compared to purchasing locally from Hatton Garden Jeweller.
I am Priya Varma, and I have been working as Content Writer at Rananjay Exports for past 2 years. My expertise lies in researching and writing both technical and fashion content. I have written multiple articles on Gemstone Jewelry like Amethyst Jewelry and other stones over the past years and would love to explore more on the same in future. I hope my work keeps mesmerizing you and helps you in the future.