FedEx sent me a Duty & Tax Invoice - Advice needed

macman

Refuse it, since it's not the camera that you were promised! Shipping costs would have been virtually the same for a more expensive camera anyway.
Assuming the competition was open to UK residents as well as US, then the delivery charges are not your problem. The tax and duty however, are down to you as the recipient.

shaun_from_Africa

macman wrote: »

Refuse it, since it's not the camera that you were promised.

It sounds like the OP has already received the camera and the FedEx bill arrive some time afterwards.

JonOapostropheBrien

Earlier this year a friend ordered a print from Canada as a present for me. The first thing I knew about it was when it was delivered, by Fedex.

A few weeks later I received a "Duty & Tax invoice" from Fedex, demanding:

Original VAT: £11.70

Advancement Fee: £12.00

The figure referred to as "original VAT" on the front of the invoice is referred to as "Disbursements out of scope of EU VAT".

After several unsatisfactory email exchanges which fail to explain why I should pay Fedex anything, having at no time been a customer of Fedex or the Canadian company which used their services, I've now received a dunning letter from Fedex's bully boys, controlaccount, a company apparently oblivious to the use of capitalisation or spaces.

I did eventually speak to someone at HMRC who tells me that the charge, although it includes the letters VAT, has nothing to do with them but appears to be a charge incurred by Fedex.

I read here that the "advancement fee" can be ignored as it's just Fedex attempting to get me to pay them money I don't owe them (isn't that fraud?) but, due to the lockdown, I'm finding it very difficult to get a definitive answer on whether or not I might actually be liable for the "original VAT"/"Disbursements out of scope of EU VAT". Can anyone here advise? Full documents available for examination should that help.

mattyprice4004

How much did they pay for the print? VAT is still liable to be paid on gifts over a certain amount - and if the company making the print didn't know it was a gift (ie just marked it as a sale rather than gift, which they may well have done) then VAT is due on goods over a much lower amount. 

If you don't want FedEx to handle the import, the parcel must be marked 'goods to be cleared by importer' - if not, the carrying courier processes the import (which is quite a complicated process), pays the VAT (which comes out of their pocket until you pay them back) and then arranges onward delivery. 

All of the above isn't free - and isn't covered by the VAT itself hence the FedEx fee.

And no, before the usual 'do I work for FedEx' questions roll in - I don't. I'm just a very well 'seasoned' importer from around the world. 

JonOapostropheBrien

> How much did they pay for the print?

No idea. There are various figures on the "supplementary declaration acceptance advice", none of which seem to be just a charge for the print.

Freight charges £12.69

VAT value adjustment £0.33

Invoice total CAD 78.00 ( at exchange rate of 1.7143 = £45.50)

Customs value £54.38

VAT value £58.51

Licence value £54.71

Total deferred revenue £11.70

Total revenue payable £11.70

Someone at HMRC has told me that if the sum being asked for doesn't include the word "import" in its description then HMRC has no interest in it.

> If you don't want FedEx to handle the import...

I don't even want the import! The print is rubbish and probably a copyright violation to boot.

> All of the above isn't free - and isn't covered by the VAT itself hence the FedEx fee.

Can't find it now but there's a post here, somewhere, which points out that without a contract with Fedex, they can't charge the "Advancement Fee". If I genuinely owe HMRC some money, then I'll pay it but there's no way I'm paying Fedex a penny if I really don't have to.

powerful_Rogue

JonOapostropheBrien said:

> All of the above isn't free - and isn't covered by the VAT itself hence the FedEx fee.

Can't find it now but there's a post here, somewhere, which points out that without a contract with Fedex, they can't charge the "Advancement Fee". If I genuinely owe HMRC some money, then I'll pay it but there's no way I'm paying Fedex a penny if I really don't have to.

And there is just as many posts explaining that the exporter cannot be expected to know the custom clearance rules in every country. As such the duty is the issue of the importer. Have you asked your friend for the money back?

JonOapostropheBrien

> And there is just as many posts explaining that the exporter cannot be expected to know the custom clearance rules in every country.
Haven't seen any of those. However, when I worked for the company handling all Sinclair Research mail order sales (the only way you could buy a ZX80, ZX81 or, initially, ZX Spectrum computer) I did all of the export dispatching. I had a book, issued by the Post Office, which explained all of the customs requirements for every country in the World. It was my job to complete all of the required forms (usually just a small, green, customs sticker) and to ensure that the package complied with all local regulations. I'm baffled to hear that's now considered impossible, especially considering how much easier information is to come by these days.

> Have you asked your friend for the money back?
I wouldn't be that crass.

Nearlyold

All imports from outside the EU are potentially subject to VAT. VAT is charged on the value of the Goods plus the postage and packing charges. There is a VAT Free Gift Allowance of £39,(the non gift limit is £15)  gifts valued over £39 are subject to VAT. In order to qualify as a Gift  it must be described as a Gift on the customs declaration be for a birthday, anniversary or other occasion, bought and sent between individuals (not companies) and intended for personal use.

In your case the picture would not have qualified as a Gift as it's value is recorded as £45.50. (converted from $78 Canadian Dollars)  Postage and packing adds £12.69 to the value for VAT purposes plus the 33p VAT value adjustment gives a total VAT-able value of £58.51.  You therefore owe HMRC £11.70. Fedex have already handled the customs clearance & paid HMRC £11.70 on your behalf and are charging you £12 on top for this service. 

This part (which appears to have caused a bit of confusion) "The figure referred to as "original VAT" on the front of the invoice is referred to as "Disbursements out of scope of EU VAT" simply means that  the disbursement of £11.70 (made by Fedex to cover the VAT due on the import)  is not itself subject to VAT.

Carrot007

JonOapostropheBrien said:
> Have you asked your friend for the money back?
I wouldn't be that crass.

Well yes, You should however tell them. If people do no realise sending stuff from afar may incur the recipient costs they may continue to do so and upset people.

You had the option to refuse it surely? I ordered a t-shirt from the US. The site clearly said. We are not going to deal with it which means fees + stupid royal mail costs. I accepted this before ordering. I would only do it for something I really wanted. The companies either don;t understand the costs is usually a lot to the recipient or do not care.

Either way only the companies can change it by selling overseas with cosst included. No one can force them to.

[Deleted User]

flyingflea said:

I won a competition to win a camera from a US based company. It arrived the next week via FedEx but today I have received a Duty & Tax invoice for £25.86 (£12 clearance admin charge + £13.86 disbursements out of the scope of EU VAT).

The camera itself was worth £69. Is it right that I have to pay to receive my prize?

Why are you entering contests in the US if you don't want to pay duties?