Purchasing disabled goods from abroad

Penn_Wooding

I can only apologise if this is not in the correct place, didn't seem to be anywhere else suitable for posting my question.

I recently purchased a piece of equipment from the USA that is specifically designed for disabled people to use. Because the equipment is designed for disabled use it's VAT exempt in the UK. Unfortunately, the company in the US didn't put anything on the front of the package stating that it was for disabled use. Therefore, FedEx sent me a bill for the VAT.

When I buy something online that is VAT exempt I normally fill out a form and send it to the company who I have bought the item from. I have purchased nondisabled items from abroad once or twice before and I have received a bill from the company who carried out shipping. Obviously, FedEx didn't know that this recent package was a disabled item and have therefore sent me the bill for the VAT. What I don't understand is why I can't simply send off a VAT exemption form to FedEx. They are asking me to go to HMRC and fill in a form online. I just want to get some advice and find out if that is the right procedure.

powerful_Rogue

Penn_Wooding wrote: »

I can only apologise if this is not in the correct place, didn't seem to be anywhere else suitable for posting my question.

I recently purchased a piece of equipment from the USA that is specifically designed for disabled people to use. Because the equipment is designed for disabled use it's VAT exempt in the UK. Unfortunately, the company in the US didn't put anything on the front of the package stating that it was for disabled use. Therefore, FedEx sent me a bill for the VAT.

When I buy something online that is VAT exempt I normally fill out a form and send it to the company who I have bought the item from. I have purchased nondisabled items from abroad once or twice before and I have received a bill from the company who carried out shipping. Obviously, FedEx didn't know that this recent package was a disabled item and have therefore sent me the bill for the VAT. What I don't understand is why I can't simply send off a VAT exemption form to FedEx. They are asking me to go to HMRC and fill in a form online. I just want to get some advice and find out if that is the right procedure.

FedEx collect on behalf of HMRC. That's why you need to fill the form out.

neilmcl

Are you 100% sure that this item is exempt of VAT, not all disability goods are, and are you, the purchaser, disabled?

Hunter_Jaeger

Just do as FedEx suggests, if it is VAT exempt then you will receive a refund from Customs and Excise.

You won't however get their handling fee back.

powerful_Rogue

Hunter_Jaeger wrote: »

Just do as FedEx suggests, if it is VAT exempt then you will receive a refund from [STRIKE]Customs and Excise.[/STRIKE]

You won't however get their handling fee back.

HM Revenue and Customs

Penn_Wooding

neilmcl wrote: »

Are you 100% sure that this item is exempt of VAT, not all disability goods are, and are you, the purchaser, disabled?

Yes, this piece of equipment will be VAT exempt. And yes, I am a disabled person who purchased the equipment.

Penn_Wooding

Hunter_Jaeger wrote: »

Just do as FedEx suggests, if it is VAT exempt then you will receive a refund from Customs and Excise.

You won't however get their handling fee back.

I haven't paid FedEx anything. I paid for the piece of equipment through the US website.

I can't say I'm that impressed with the way FedEx have dealt with the situation. Being told that my case is being handed over to a debt collecting agency is punching below the belt in my opinion. Seems a little bit silly for 50 quid. Anyway, I know it's just scare tactics. Anyway, I don't owe any money because there isn't any VAT to be paid on the device. However, I will fill this form in. If they want to get their knickers in a twist in the meantime then that's up to them.

powerful_Rogue

Penn_Wooding wrote: »

I haven't paid FedEx anything. I paid for the piece of equipment through the US website.

I can't say I'm that impressed with the way FedEx have dealt with the situation. Being told that my case is being handed over to a debt collecting agency is punching below the belt in my opinion. Seems a little bit silly for 50 quid. Anyway, I know it's just scare tactics. Anyway, I don't owe any money because there isn't any VAT to be paid on the device. However, I will fill this form in. If they want to get their knickers in a twist in the meantime then that's up to them.

Penn_Wooding wrote: »

Unfortunately, the company in the US didn't put anything on the front of the package stating that it was for disabled use. Therefore, FedEx sent me a bill for the VAT.

I think you're being a bit unfair. If it's anyones fault, it's that of the retailer for not completing the customs declaration correctly.

I'm not sure if you understand how it works, but due to the customs declaration made by the retailer, HMRC will inspect the item and levy the tax/duties applicable. FedEX then pay that to HMRC on behalf of yourself.

FedEX will chase this up, otherwise everyone would just stop paying.

In future, maybe you should do the customs clearance yourself. >> https://www.nibusinessinfo.co.uk/content/how-declare-goods-when-importing-post


Do you have a link to the item in question?

BoGoF

Perhaps you should do the research before ordering from outwith the UK. Despite your rant FedEx are only doing whats expected of them by the authorities.

TripleH

Sorry, i have to agree with the above. FedEx will handle thousands of imports a day and the chances are they don't have the time or resources to check every item.

Far simpler for them to assume declaration is correct and process accordingly, leaving supplier/customer to resolve the end issues.