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Analysis of Apple tax on notebooks?
- Thread starter bozeefus
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[2^0] What "Linux" is?
[2^1] How to install it.
[2^2] How to get their drivers working.
Did I crack the code to your numbering system?
I don't think its just as simple as the 17.5% VAT. HM RC will charge duty on all of these items brought into the UK/EU. From the HM RC website:
"If the goods originate from outside the EU and no duty has been paid, you need to calculate the value of the goods. There are six calculation methods prescribed. If method one is not possible, you should move on to method two, and if that fails use method three, until you arrive at a value."
Unfortunately, I couldn't locate what the exact duty percentage is for the UK. I would assume this to be in the 5-10% range (I would try and get the exact percentage, but the HM RC website asks for you to call a helpline within the UK). In any case, lets take the low end MBP.
In the US, $1199
Import into the UK incurs 5% duty = 1258.95 USD
VAT in the UK incurs 17.5% = 1479.27 USD
Mean Price Conversion to GBP (based on mean exchange rate of 1 USD = 0.656 GBP) = 970.84 GBP
Price of MBP in UK = 918 GBP
Based on this (I admit that I don't have the exact duty percentage), I think the UK MBP prices are on par with those in the US.
EDIT:
According to this:
"Customs duty - Customs duty becomes payable if the goods are over £135 in value but is waived if the amount calculated is less than £9. Customs duty is usually charged as a percentage of the value of the goods.
The amount of customs duty charged will depend on the type of goods imported and their value stated on the customs declaration CN22/CN23 (converted using the rates of exchange for the month of importation as shown on our website).
The percentage varies depending on the type of goods and their country of origin. Duty is charged on the price paid for the goods including any local sales taxes plus postage, packing and insurance costs. However, the cost of postage is excluded from the calculation for customs duty on gifts except where the sender has used the Express Mail Service (EMS) as opposed to a standard mail service.
Where the value of gifts is below £630 per consignment a flat rate of duty of 2.5 per cent will be applied, but only if it is to your advantage."
It looks like a flat rate of 2.5% for duty for gifts. I would think it would be higher for commercial items. Regardless, taking this into account:
In the US, $1199
Import into the UK incurs 2.5% duty = 1228.98 USD
VAT in the UK incurs 17.5% = 1444.05 USD
Mean Price Conversion to GBP (based on mean exchange rate of 1 USD = 0.656 GBP) = 947.30 GBP
Price of MBP in UK = 918 GBP
Still the price seems within 30 GBP of the selling price.
Even by your calculations there is a difference, I am not sure why in the Uk we should have to pay even that much
You are paying "less" than the cost of import according to those calculations. The reason that the price is more is because your government imposes higher taxes on these goods, be it in the form of VAT and in the form of duty.
Correction to my original post - people would whine about something else if Apple updated more frequently.
I am not sure that you are correct here, as the items ship from china, so surely there must also be duty applied to the US imports also?
Also, lots of macs actually ship from Ireland, I wonder if this makes any difference?
Also, Your figures are stated for gifts, I think that we would need an exact figure (in fact my guess would be that it would be less than private import duties) before any conclusions can be made
About a week ago a configured a Dell equivalent to the top 15" Macbook Pro and it came out to about 9% less. I think the Mac aesthetic + Mac OS X makes me 9% happier with my laptop than I would've been with the Dell. When comparing products I think you have to be careful to compare as close to the same computers as you can. Most people I see quoting an Apple tax don't do this so well. They just find the deal of the week and slap it next to a Macbook Pro.
I acknowledged the limitations of my calculations in my earlier post. Yes a duty is probably also levied by the US government, but my point is that it is far less than anything the UK government imposes.
In any case, the bottom line is simply comparing a USD to GBP equivalency in pricing is not accurate due to the added costs of doing business in the EU.