Import VAT on no value spares?

Maharishi

Hello guys, I recently made a warranty claim on a musical equipment flight case where the locking castor wheels had failed. The company - SKB Cases - is in the USA, but I bought the case in London.

The cases have a lifetime warranty and, true to this, SKB have sent me four new wheels free of charge. On Saturday I received a bill from Parcelforce for £29.72 listed as "Import VAT" - £21.72 VAT and the insidious £8 collecting fee. If I don't cough up, they won't deliver my goods. Am I really liable on spare parts that;
a) Are not being charged?
b) Are replacements for failed items where VAT was paid originally?
c) Add no commercial value to the unit?

Many thanks.

M

molerat

The items have a value which has been declared by the sender and tax is due on that value. They could possibly have sent them as "no commercial value" but that would not strictly be true.

bod1467

Send a claim to the manufacturer to cover the losses you (will) have incurred?

George_Michael

Maharishi wrote: »

goods. Am I really liable on spare parts that;
a) Are not being charged?
b) Are replacements for failed items where VAT was paid originally?
c) Add no commercial value to the unit?

a) Even though you were not being charged, there is still a value to the goods.

b) VAT was paid on the original wheels but is still due on the replacements.
Just think about any spare parts you buy for other items such as car parts. VAT would have been paid on the original car but you still have to pay VAT on any parts you buy at a later date.

c) Having working wheels must add value to the case.
If you were to sell it with broken wheels would you expect to get the same price as one that was fully working?

visidigi

Have a word with the sender - you bought UK cleared goods - paying the VAT, they should have sent these with the appropriate declarations to avoid any charges.

shaun_from_Africa

visidigi wrote: »

Have a word with the sender - you bought UK cleared goods - paying the VAT, they should have sent these with the appropriate declarations to avoid any charges.

The original case was purchased in the UK with VAT being paid but this has no bearing on the charges for the replacement wheels.
If something is sent out of the EU for a free of charge repair under warranty then it is possible to obtain relief on VAT charges when it is re-imported but this relief doesn't apply when spare parts are sent in separately.

Maharishi

George_Michael wrote: »

a) Even though you were not being charged, there is still a value to the goods.

b) VAT was paid on the original wheels but is still due on the replacements.
Just think about any spare parts you buy for other items such as car parts. VAT would have been paid on the original car but you still have to pay VAT on any parts you buy at a later date.

c) Having working wheels must add value to the case.
If you were to sell it with broken wheels would you expect to get the same price as one that was fully working?

a) I can sort of see that.
b) True BUT I am not buying these parts - they are being supplied free under warranty terms.
c) It does have "working wheels" - specifically it is the brake that has failed on 2 of the 4 castors (similar to a push-chair), and so if I was to sell it, the value would be (largely) unchanged. It certainly wouldn't increase by £100!

Thanks for the reply.

visidigi

shaun_from_Africa wrote: »

The original case was purchased in the UK with VAT being paid but this has no bearing on the charges for the replacement wheels.
If something is sent out of the EU for a free of charge repair under warranty then it is possible to obtain relief on VAT charges when it is re-imported but this relief doesn't apply when spare parts are sent in separately.

I was refering to this but forgot to paste it in - bolding is mine...

Lifetime Warranty
SKB brand hardshell cases are fully warranted against defects in materials and craftsmanship for the life of the case to the original owner. That means, if your case breaks, SKB will supply replacement parts, repair the case, or replace your case for as long as you own it. Proof of Purchase is required for all warranty claims. Electronic components in SKB brand hardshell pedalboard systems are warranted for five years from date of purchase. Soft cases and gig bags are warranted for one year from date of purchase. SKB is not responsible for the shipping cost to our facility. However, SKB will cover all of the costs of repairs and/or replacements, as well as the return shipping. To request a return authorization for a warranty claim or field replaceable parts, please contact our customer service department through our online Support Request form.

SKB hardshell cases are warranted for life to the original owner only. Cases used rental purposes, used by institutions or schools, modified or used cases are not covered by this warranty.

http://www.skbcases.com/music/support.php?section=warranty

shaun_from_Africa

That link just seems to state that SKB will cover the return costs for something that was sent for them to repair:

SKB is not responsible for the shipping cost to our facility. However, SKB will cover all of the costs of repairs and/or replacements, as well as the return shipping.

and makes no mention of the same applying when they just send out spares for the owner to fit themselves.

That's why I mentioned earlier about being entitled to claim VAT relief on the import of repaired goods if you had sent something out of the EU for repair under warranty.

However, there's certainly no harm in contacting the customer support dep't of the company and asking if they would be willing to cover the costs.

Maharishi

shaun_from_Africa wrote: »

That link just seems to state that SKB will cover the return costs for something that was sent for them to repair:

and makes no mention of the same applying when they just send out spares for the owner to fit themselves.

That's why I mentioned earlier about being entitled to claim VAT relief on the import of repaired goods if you had sent something out of the EU for repair under warranty.

However, there's certainly no harm in contacting the customer support dep't of the company and asking if they would be willing to cover the costs.

I have an emailed order and invoice showing the cost of the wheels as $114.99 followed underneath by a discount of $114.99 leaving a zero balance to pay.

Currently, the $ to £ is 1.48 on XE.com, so God only knows how the VAT levied on approx £77 equates to £21.72. Of course, the case was far too big to ship back to have new wheels bolted on, hence a DIY repair with the supplied parts.

I also claimed for a split guitar case, which was also replaced FOC from SKB Netherlands to a local dealer. Thankfully that was a free exchange ...

Any more info most welcome people.

Elsewhere

I don't think you should have to pay anything. This isn't quite the same, but I'd think the principle applies

http://www.dutycalculator.com/help_center/my-goods-were-sent-outside-the-eu-to-be-repaired-do-i-have-to-pay-import-duty-and-vat-when-they-are-returned-to-me/

See also "No there shouldn't but it's a known tax/duty avoidance technique, mark a parcel as 'warranty replacement' to avoid it.
Hence why when Parcelforce pay it on your behalf, you have to pay them to release the parcel & then you can submit a claim to get the money refunded." from http://singletrackworld.com/forum/topic/import-duties-on-warranty-replacements-from-the-usa