Parcelforce customs fee

YoelD

It's only on purchases where standard deliveries are added to cost for VAT calculations.

RFW

YoelD wrote: »

It's only on purchases where standard deliveries are added to cost for VAT calculations.

To clarify a bit. If the item is subject to VAT then so is the postage.


This actually applies within domestic postage too. With Royal Mail if, as a business, I send an item by Royal Mail, then the postage is usually not subject to VAT. If I send a £9 standard rate item and the charge £1 postage the VAT payable is £2, not £1.80. That is irrespective of whether Royal Mail charge me VAT or not.

Conversely if I send a zero rated book with the same charges then the VAT is zero.

YoelD

On purchases, certainly.
But with gifts only express delivery systems are added for the value of VAT, not standard services. I have no idea why this is.

custardy

YoelD wrote: »

Not according the HMRC:

"As with Customs Duty, the cost of postage is excluded from the calculation for VAT on gifts except where the sender has used the Express Mail Service (EMS) as opposed to a standard mail service."

Its moot really. IME all Parceforce items are EMS items.

YoelD

Only if that's what has been paid for by the sender. It's an international service and Parcelforce cannot change the service used once it has arrived.

custardy

YoelD wrote: »

Only if that's what has been paid for by the sender. It's an international service and Parcelforce cannot change the service used once it has arrived.

You misunderstand. Non EMS are generally handled by RM.
Its not changing the service,simply its what PF generally handle

YoelD

As far as I've been able to find out, when it's sent by USPS, it depends on the size if the parcel. RMG are the international partner, and larger parcels are brought it by Parcelforce.
Plus USPS (for all its claimed faults) have very detailed tracking information which lets you know the postage type.