#4 So we will work on that price and if you want to say we don't get charged VAT & Import Duties then that's fine.
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But the chances are, are that VAT WILL be added. Forget about import tax. What about the VAT which you will most probably be charged? You were giving an unrealistic outcome on VAT, which is what i am asking. Once VAT is charged, then there is an immediate loss.

Please explain.

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Last edited by fatty_bum_bum; 22-03-2007 at 06:41 PM. Reason: Accidentally pressed submit button.

Maybe you could look into selling a different product all togethor if your concerned you will loose money with the ps3?

Forget about the product being a ps3. I'm just trying to figure out how profits are made on prices like these - regardless of what the product is. Just want to figure out how people make a profit @ prices mentioned, when vat & delivery charge is added, etc.

OK, 'fatty_bum_bum'.You originally said lets say if you do not get charged VAT what the outcome would be. So I worked it out like that.

"you are giving an unrealistic outcome on VAT" I was going off the fact that you said this originally "let's just say that you paid no VAT or delivery charge for your ps3 goods" now I've lost count of the amount of times I have imported goods and I know that you do get charged VAT & Import Duties. I also know that a lot of people do not declare the full value of there goods and that's why they can sell on eBay.

For the average 'seller' PS3's are really not a good option, consoles on the whole for that matter. How are you going to compete with the HK sellers and brokers on eBay that are not including these fees in there prices.

You should look for a area where you can compete with these prices. Items that cost you £3 - £4 are good as the VAT is minimal. There also a few items that cost this much which you can sell for £9+. The only other alternative is to buy UK stock, its finding the right prices which is hard.

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OK, fair enough. So VAT is always added - hence- a loss if declaring full price.

"I also know that a lot of people do not declare the full value of there goods and that's why they can sell on eBay."

Are you talking about VAT registered businesses not declaring?

Does this mean that everyday eBayers (non registered for VAT) would not stand a chance in profiting on goods like these? If the answer is 'yes' then now I'm beginning to understand.

What is HK?

No this means that they mark a lower value on the package say $50 when it cost $1,000 meaning they only get charged the tax on $50 not the true amount. You don't have to be VAT registered to do this. Its illegal to do this and you will face a large fine or even imprisonment. You don't always make a loss when paying VAT as its part of importing goods - you will do if you choose products like PS3's.

HK = Hong Kong

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Originally Posted by PT Games

No this means that they mark a lower value on the package say $50 when it cost $1,000 meaning they only get charged the tax on $50 not the true amount. You don't have to be VAT registered to do this. Its illegal to do this and you will face a large fine or even imprisonment. You don't always make a loss when paying VAT as its part of importing goods - you will do if you choose products like PS3's.

HK = Hong Kong

Plus declaring a lower value, lowers the insurance on the parcel.

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Originally Posted by saajan

Plus declaring a lower value, lowers the insurance on the parcel.

I think thats the least of your worries if your going to be importing goods illegally IMO.

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If you have them dropshipped from one of the suppliers, straight to your customer trhen you are not going to have to worry about v.a.t and import duties as this is the buyers responsibility who recieves the package. If you state this then the buyers should not have a problem with it if they buy.