Import VAT on a gift when sender put down wrong value.

Verdana

I don't know if this is the right section as I am not technically a consumer but I couldn't see any sections on the law.

I received a post office slip asking me to pay £20.98 (including the £8 handling charge) to release an international parcel. I didn't order anything and when asked found it to be a gift from my cousin in Australia (stationary and toys). My cousin then told me that she marked the value on the customs slip as $100 and included the cost of postage ($35) in it. Customs obviously charged the VAT on the £64 equivalent.

On HMRC's webite I found a section that said VAT would not be charged on the cost of postage and packing if it is a gift and express mail service is not used. If I write to UKBA requesting the VAT to be waived by explaining that my cousin mistakenly put an inflated value, how likely is it that they would approve? I understand I probably need her to give me the receipts to prove the worth of the goods. If this suceeds would the post office refund me the £8 handling charge because they are only allowed to charge it if goods are found to be liable for customs duties?

custardy

Verdana wrote: »

I don't know if this is the right section as I am not technically a consumer but I couldn't see any sections on the law.

I received a [STRIKE]post office [/STRIKE] Royal Mail slip asking me to pay £20.98 (including the £8 handling charge) to release an international parcel. I didn't order anything and when asked found it to be a gift from my cousin in Australia (stationary and toys). My cousin then told me that she marked the value on the customs slip as $100 and included the cost of postage ($35) in it. Customs obviously charged the VAT on the £64 equivalent.

On HMRC's webite I found a section that said VAT would not be charged on the cost of postage and packing if it is a gift and express mail service is not used. If I write to UKBA requesting the VAT to be waived by explaining that my cousin mistakenly put an inflated value, how likely is it that they would approve? I understand I probably need her to give me the receipts to prove the worth of the goods. If this suceeds would the [STRIKE]post office[/STRIKE]Royal Mail refund me the £8 handling charge because they are only allowed to charge it if goods are found to be liable for customs duties?

Removing the postage element gives $65 AU = £42
writing gift doesn't exempt it from VAT and it was over the threshold before you even key in including the postage

Verdana

I know it being a gift doesn't make it exempt, despite the fact that in principle, she had already paid the value added tax in Australia. But then again, this is a country that forces people to pay a licence to watch tv in their own homes.

Anyway, if it did come to under the threshold, would it still work?

custardy

Verdana wrote: »

I know it being a gift doesn't make it exempt, despite the fact that in principle, she had already paid the value added tax in Australia. But then again, this is a country that forces people to pay a licence to watch tv in their own homes.

Anyway, if it did come to under the threshold, would it still work?

What has GST got to do with UK taxes?
Does Oz not charge import taxes?
Would what work?
getting HMRC to reconsider. you will need to ask them
Getting £8 back from RM? unlikely given they did the clearance on the declared value

Verdana

The point is that my cousin already paid value added tax on it when she purchased from the shops, and now I have to pay value added tax on top of the original value and the tax she had paid. Think of it as someone paying VAT on a gift which the purchaser had already paid VAT for.

If I send gifts to my family and friends in Australia there would be no tax, it is different if someone in Australia purchased overseas but that is only for high value products, like $1000.

I know that I would need to ask HMRC but if they are likely to refuse (as was the case when I tried to claw back VAT for a friend exporting goods) then I want to know so I don't waste my time. In which case anecdotes would help.

Can someone else please give advice on my original questions, with the consideration that the value of the goods are below the £40 threshold.

custardy

Verdana wrote: »

The point is that my cousin already paid value added tax on it when she purchased from the shops, and now I have to pay value added tax on top of the original value and the tax she had paid. Think of it as someone paying VAT on a gift which the purchaser had already paid VAT for.

If I send gifts to my family and friends in Australia there would be no tax, it is different if someone in Australia purchased overseas but that is only for high value products, like $1000.

I know that I would need to ask HMRC but if they are likely to refuse (as was the case when I tried to claw back VAT for a friend exporting goods) then I want to know so I don't waste my time. In which case anecdotes would help.

Can someone else please give advice on my original questions, with the consideration that the value of the goods are below the £40 threshold.

You have no point
Taxes paid in another country mean nothing
Does AU Gov send a portion of that to the UK?

Why are you asking about goods below £40?
£36 is the gift limit IIRC.
So once you go over that(as your post values indicate) then postage is included
your relative made a declaration of value
you are now planning on telling customs they are worth a massive amount less

Verdana

Ah, never mind. And go look on HMRC, threshold for gifts is £40. I don't know the exact precise amount unless she gives me all the receipts. She at first told me postage costs $65 but I thought I saw $35 on the package so it's disputable. I am preparing for all eventualities. You call me out on it and refuse to move on and from the sounds of it are now judging me when you don't know the full picture. You are now saying there is no point in my questions. That's quite alright, I will wait for answers from others.

custardy

Verdana wrote: »

ah, never mind. And go look on HMRC, threshold for gifts is £40.

which by your figures, you are still over excluding postage?

Verdana

Please stop wasting your time.

custardy

Verdana wrote: »

Please stop wasting your time.

So in short you have no idea of the values, and dont agree with paying VAT

izzy65

Sorry but I think that by declaring the value and signing the customs slip she has made it a fact that the goods were worth that amount of money, as for getting anything back from the HMRC doubt it very much:o