FedEx Advancement fee

paddyrg

Did you re-export the old case for repair and have proof for HMRC, it did you just import an extra case, so now there are two in the country (albeit one not working as well now)?

You can see how if the latter, there are taxes payable, otherwise this would be so abused with everyone claiming each new £500 phone was a warranty replacement for the previous, and how this happens to them sixty times a day. It would put the onus on HMRC to investigate and prove someone was illegitimate, not the other way round.

Satjohn

As the information show above. Life proof have shipped it as a warranty item with the value shown as $0. That's the only paperwork I have from Lifeproof.
The invoice from FedEx shows import tax as 5.39 and advancement fee as 12.00 giving a total of the £17.39 but has no other information other than
Who signed for it, the billed weight and FedEx reference and shipment numbers.

visidigi

Satjohn wrote: »

As the information show above. Life proof have shipped it as a warranty item with the value shown as $0. That's the only paperwork I have from Lifeproof.
The invoice from FedEx shows import tax as 5.39 and advancement fee as 12.00 giving a total of the £17.39 but has no other information other than
Who signed for it, the billed weight and FedEx reference and shipment numbers.

The only thing with 0 value is a document - because lifeproof did not declare it properly the fee has been levied by HMRC which has been passed on to you to pay as Lifeproof said you were responsible.

You need to get lifeproof to deal with this - FedEx did as it was told and the fee is still applicable based on what actions lifeproof took.

There's nothing anyone this end of the process can do for you. Lifeproof call FedEx, say they will cover it, all correspondence from FedEx will stop to you.

Satjohn

Update.
VAT office say tax should not have been due on a zero priced replacement and the fact lifeproof must have given it a value for insurance purposes must be what has caused the problem. They tell me I can claim the tax back with the correct paperwork. This still leaves me £12 out of pocket if I can be bothered working through the VAT forms!
Just had an email from lifeproof saying FedEx shouldn't be asking me for any money and to forward the information to them. So hopefully they can resolve from their end??
Thanks for all the help and advice

George_Michael

Satjohn wrote: »

Update.
VAT office say tax should not have been due on a zero priced replacement and the fact lifeproof must have given it a value for insurance purposes must be what has caused the problem

Did you make sure that the VAT office were aware that the item was a replacement and not a repaired item and that the original case was still in the UK?
VAT is due on replacements but not on exchanges and in this instance, the original item was not exported, hence the item sent to you was VAT liable.

http://www.hmrc.gov.uk/manuals/oprmanual/opr13200.htm

Satjohn

The Vat adviser did ask the location of the old case and said this may have to be returned or proved destroyed but didn't think it was a major issue. They were very helpful surprisingly