Selling Coins To The Uk? Global Postage Program Problems.

Now I hadn't come across the Global Postage Programme before today. But having looked into it I thought anyone here that uses ebay to sell to the UK should be aware of how offering a GSP (Global Shipping Programme)Item could affect your buyer.

I was browsing some coins from a US seller and noticed an "Import Charge" listed in addition to postage. Apparently this is because the coin in question is a GSP Item.

Basically offering GSP items should help your buyer, because it allows a buyer to pay any charges for import duties and taxes upfront with the item.

This means the buyer doesn't need to worry about getting a charge (in the case of UK buyers from both HM Revenue and Customs and the Post Office for import duty and VAT) on delivery of the item.

But there is a problem with this. The Import Charges quoted in the listing are around 22% of the cost of the item, in this case a coin. The problem being that coins, as 'Items of Numismatic Interest' are not liable to UK import duty.

Well, OK, you say. But there's purchase tax (VAT). Yes there is. But (again) 'items of numismatic interest' are liable to a special LOWER rate of VAT (5%)

So your buyer will end up paying over 15% more for an item under GSP ($150 on a $795 coin in the case I saw) than if they just pay duty on delivery.

Now it may be that the shippers (Pitney Bowes) will adjust the fee in this case to the correct level. But I for one will not be bidding, in case they don't. After all, there are no refunds for overcharging.

So if you sell coins regularly to the UK you might want to consider whether it's worth offering GSP Items. Or whether doing so will just lose you customers.