Import Duty - Purchase

Runningfast

Not sure if this is the right thread for this question.

If you purchase an item from a business in the EU and that business is also VAT registered in the UK do you still have to pay import duties?

I purchased an item from an EU based company
The item I purchased was charged as follows:
Item £155.83
VAT @ 20% £31.17
Total: £186.99
Shipping Free: Product more that £100
Today UPS arrived at my door saying that I owed an additional £69.94 before they would release the item as it had been imported from Germany.  

Is this correct? or have customs and UPS got this wrong? 

Nearlyold

When did you order and pay for it?

Runningfast

Nearlyold said:

When did you order and pay for it?

Hi, I ordered online and paid on the 26th January

sheramber

You pay import duty when over £135.

Thrugelmir

What's the breakdown of the amount UPS are requesting? 

Runningfast

sheramber said:

You pay import duty when over £135.

Thanks.

£69.94 import duty seems bloody steep for a camping mat though!  It's a shame, I have purchased lots over the years from this company as they have a series of distribution centres all over the place including one in Bury St Edmunds (the product is made in Ireland).

So if I am following this correctly the company in Germany have charged me for the item, then charged me UK VAT (20%) and then sent it from one of their German distribution centres and now the UK government and UPS want nearly £70 before I am allowed to actually own my camping mat!!

Runningfast

Thrugelmir said:

What's the breakdown of the amount UPS are requesting? 

Haven't provided me with anything other than the fee was £69.94 there is no breakdown of charges provided.

Nearlyold

On 01/01/21 the rules on personal imports changed. 

Previously when you imported goods into the UK from within the EU the exporter simply charged their own local VAT and there were no additional admin or import charges to pay when the goods arrived in the UK.

Now goods purchased by UK consumers from outside the UK up to the value of £135 have the UK VAT charged & collected by the exporter who has to have registered with HMRC &  then remits the VAT to HMRC, the exporter does not charge any local VAT.

For anything over £135 the exporter should not charge VAT (either local or UK),  the VAT (plus any duties) is charged on the goods & postage costs when the goods arrive in the UK and are payable by the importer (ie you in this case). The Courier who handles the import process for you will charge for this service and bill you for VAT & handling.

It is possible for exporters to quote and charge a  UK VAT and handling charge  inclusive price and arrange for the UK VAT to be paid by the courier on the goods arrival in the UK with no surprise bill for you.

It appears something has gone wrong in your case as I suspect two lots of VAT have been charged, however exactly where the fault lies is difficult to say, I would start with asking the German Company why they charged UK VAT and go from there. Do you have a link to their website to check their process for export to the UK, a couple of German firms I buy from are clearly offering to discount the 19% German VAT and send the goods VAT free.

Runningfast

In reply Nearlyold:

Thanks, I guess something went wrong somewhere and like you say it appears I may have been charged VAT twice.  

Their website is www.bikester.co.uk 
Registered office: Stuttgart, AG Stuttgart, HRB 741359, VAT ID: GB139667372
Their UK VAT details show that they are also registered at an address in Aberdeen (.gov.uk)

The price I paid for the item was the same as the UK retail price but with the added £70 makes it significantly more expensive.  I bought the product from Germany because getting hold of the same item in the UK is proving very difficult at the moment and has been for weeks.

Thrugelmir

The Company is based in Germany and ships from warehouses there. Suggest you contact them. The UK registration is just a front to give the appearance of being British. 

Runningfast

Thrugelmir said:

The Company is based in Germany and ships from warehouses there. Suggest you contact them. The UK registration is just a front to give the appearance of being British. 

I've sent them an email today.