DHL debt collector - credit rating?

[Deleted User]

I’m in the middle of disputing an invoice from DHL for VAT on a parcel (I already paid VAT and have sent them itemised receipts but they’re just ignoring me) despite numerous calls & emails, I’ve now received a letter stating if I don’t pay within 7 days, they’ll pass the matter to a debt collection agency. I received the letter on the 7th day (thanks postal service!)

I don’t have an account with DHL, I am just the receiver of an item I bought online. Is there any way the passing of this issue to a debt collection agency will impact my credit rating? If so, I guess I will have to admit defeat and grovel and pay the fee and hope it’s not too late. But if it won’t affect my rating, I’ll continue fighting it.

[Deleted User]

Sorry I have just read the sticky - so will change the question and ask - will this appear in my credit report?

Puddles83

No. It won’t.

MEM62

If DHL are invoicing you for VAT that will be VAT payable to HMRC when the goods are imported into the UK. 

What VAT do you believe that you have paid already?  

Jasonh2015

Debt collectors do not have official powers, they're a private company. They need a court order to enforce a debt if they are looking to recover the debt by taking goods, so it's contestable in court before a CCJ  is issued. Aside from that, they can call/write to you to arrange a payment plan. 

If you have paid the VAT you can show them proof. Because of Brexit and depending on where imports have come from this might end up a common occurrence. 

sourcrates

This kind of debt collection does not go beyond a couple of letters, the few quid they say you owe them does not warrant much DCA time.

After that it will go quiet and be forgotten about.

[Deleted User]

MEM62 said:

If DHL are invoicing you for VAT that will be VAT payable to HMRC when the goods are imported into the UK. 

What VAT do you believe that you have paid already?  

I have paid 20% VAT in addition to the item price when I ordered the item because the company is based in Paris and I live in the UK. I have an itemised email receipt which breaks down the item price, 20% VAT added as a UK customer and delivery fee. The company’s website stated because they do this, there is no need to pay additional VAT. However as I bought the item on 3 January I have a feeling that the company was not prepared enough to fill out the required paperwork so did not convey this. I am guessing this as DHL has assumed the item price is £152 but this includes the VAT and delivery charges. 

DHL has raised a dispute for me and it sounds like they accept I have proof I’ve paid the VAT, but we’ll see. 

zzyzx1221

I suspect the 20% VAT is French VAT, not UK VAT.


The UK taxman isn't interested in VAT you paid to another country and it's not uncommon (and definitely was quite common on Jan 3rd) for EU businesses to still treat UK customers as if they were part of the EU and levy local VAT when they should be knocking the local taxes off for export.

[Deleted User]

zzyzx1221 said:

I suspect the 20% VAT is French VAT, not UK VAT.


The UK taxman isn't interested in VAT you paid to another country and it's not uncommon (and definitely was quite common on Jan 3rd) for EU businesses to still treat UK customers as if they were part of the EU and levy local VAT when they should be knocking the local taxes off for export.

That’s what I originally thought and I think you are right. It confused me as the company confirmed that I shouldn’t be paying any more fees. It’s not a huge amount so it’s not the end of the world. My question - and concern - was more around whether DHL sending the debt to a debt collection agency would affect my credit score/credit file. As I received the threatening letter only after their deadline. But they’ve now opened a dispute so I’ll just wait. 

MattMattMattUK

dazed_confused said:

Sorry I have just read the sticky - so will change the question and ask - will this appear in my credit report?

It will not as a debt collection, it will if a CCJ is obtained, which is likely next on their list of actions. 

phillw

zzyzx1221 said:

The UK taxman isn't interested in VAT you paid to another country.

It seems to me that they are very interested in VAT paid on goods bought from outside the UK, as long as they are valued (not cost) £135 or less.

https://www.gov.uk/guidance/vat-and-overseas-goods-sold-directly-to-customers-in-the-uk#goods-that-are-outside-the-uk-at-the-point-of-sale

Consignments valued at £135 or less

The seller must charge and account for VAT at the point of sale, unless the consignment is a business to business sale and the customer has given them their UK VAT registration number.

To charge and account for VAT the seller will need to:

• know the precise nature of the goods to find out the correct rate of VAT to charge
• register for VAT - sellers that are already registered for VAT do not need to re-register
• keep records of the goods sold, and make sure they get accurate information to apply the correct VAT treatment to them