VAT on prizes for UK contest winners Answered
I know from the official rules that UK contest winners take responsibility for any VAT due on prizes, but was just wondering if any previous UK winners could let us know what normally happens? Do you end up paying VAT on the market value of the prize? I've sometimes seen the courier pay this on your behalf and charge you before they'll deliver it so maybe this will happen.
For any non-UK members reading this, VAT is a sort of sales tax (currently 20%). If you'd won a UK-based contest it wouldn't be an issue as the purchaser would have paid it. If you buy something from abroad you have to pay VAT as it comes into the country. I've no idea about a prize.
I recently won something in the Make it Real challenge, so if nobody can tell me then I'll be answering this myself when it arrives.