UPS import charges

Debtless_2

Hi all, A little help please.
I bought an item last May from an online shop in Italy but due to covid rubbish they had supply issues and where not able to ship till Jan this year. Now my understanding is that any items bought and paid for before 11pm on 31,12,2020 come under the old rules even if delivered after Brexit. 
UPS delivered my parcel in January (no mention of any import tax) and that was that. Now a couple of months later they have sent me an invoice for the import duty and VAT which I believe is not due.
Can anyone clarify this as thats how the rules for OMP's read to me.

Transactions before 1 January 2021

The new rules will apply to all sales that have a time of supply for VAT purposes of 1 January 2021 or later.

For example, if an order is placed and payment received from the customer on 31 December 2020 then the new rules will not apply, even if dispatch and delivery take place after 1 January 2021.

Nearlyold

You are correct in what should have happened - however there have been a lot of teething problems with the new system.
If import duty & VAT have been charged and that is what UPS are asking for in their invoice (assuming its not been sent in error) it will be because that is what HMRC have charged and UPS have paid it on your behalf.

Were there any customs declaration labels on the parcel? (these should have been completed by the Italian Firm) What date is on your invoice from the Italian supplier, how much was the item and have you paid VAT on the suppliers invoice & at what rate?

Debtless_2

The invoice date is the shipping date but my order date snd date on statement show May 1st 2020, No customs form on the parcel. the item was £5338, not sure about vat as no mention on order details

Nearlyold

Ah the invoice date has possibly caused the issue. When did you pay, was it back in May & did you get a receipt at the time?
If there was no customs declaration how did HMRC know what was in it, has it been opened and what paperwork was in the parcel?

Debtless_2

It just had the shipping invoice on the box ill see if its in the papers ups sent me, paid back in may and statement shows this

Nearlyold

It'll be the date on the invoice on the box that has caused the issue, you'll need to take it up with HMRC and the supplier. Was £5338 the same price that you agreed back in May which presumably included Italian VAT?

Debtless_2

Yes that £5338 was listed on the website and thats what i paid also shows that price in statement and order confirmation email. I have a shipping invoice  from supplier included in ups letter. this shows €5025.17 which is toughly £4500, vat% is 0. since the item was delivered and they have only just sent an invoice and due to the old rules applying I'd say I'm within my rights not to pay and have no intention of paying, they even have the commidity code wrong. 

I can see if i pay the alledged £1700 they are asking for then i will never see it again!

Aylesbury_Duck

The trouble is that UPS have paid the £1700 on your behalf (some of it will be their admin charge, I suspect) in good faith and based on the information available to them, and they will almost certainly pursue you for it.

Debtless_2

Yes I understand that.

I shall see what ups reply to my email and also contact the supplier about the vat as there is an £800 difference in what i paid and what they have on the shipping/customs declaration.

If I can get them to refund the original vat i paid what are the odds on the refund for incorrectly charged import duty from HMRC?

Nearlyold

I'm not sure how binding on the Italian company the UK's treatment of goods ordered and paid for pre Brexit is.
The Italian exporter has sent the goods to you under the new post Brexit rules ie with no UK VAT (as the goods exceed £135) or Italian VAT. The supplier therefore owes you the difference between what you paid and the amount on the Invoice ie £838.
 As it stands you in turn would owe HMRC VAT and Duty on the post Brexit price the Italian firm has charged you, however UPS acting in good faith have presumably paid this already on your behalf as is their standard procedure so currently you owe them the £1700. Obviously you can talk to HMRC to see what can be done but in the meantime don't expect UPS to let this go - they have done nothing wrong nor have HMRC as they have both simply gone by the documentation on the goods.

Debtless_2

Like I said I understand that and I'm happy to pay the vat if i get a refund from supplier. The duty however will most likely have to be claimed back and was charged at 14% yet on the HMRC website it staes it is 6%? any advice on completing forms and what documents are needed?