Partcelhero Lost Parcel - Not Paying VAT On Item

fango25622

Hi,
I've been having real problems dealing with Parcelhero, and getting a refund for an item they lost back in March.

They (via UPS) lost a parcel containing an item I was returning to the vendor i bought for £1350inc VAT - I bought extended insurance on the shipment through their website to cover the full amount including VAT. However Parcelhero are saying they only cover up to the cost item of the lost item excluding VAT. This is over £200 short of what I paid for the item.

This feels unfair, are they in their rights to withhold the VAT on the item lost in the claim?

Many thanks

Manxman_in_exile

I'm not sure if this explains the problem, but are you acting as a business rather than as a consumer?

fango25622

Thanks for coming back, I'm just a consumer. The account is under my name, no company information or VAT registration etc. 

powerful_Rogue

What was the item?

Sandtree

What explanation have they given for excluding VAT? Was the vendor in the UK or overseas? If overseas, was the parcel lost in the UK or once it was out the country?

user1977

fango25622 said:

However Parcelhero are saying they only cover up to the cost item of the lost item excluding VAT.

For a start, is this actually what their terms say?

fango25622

Thanks for replies. Sorry for the short delay in responding, i do not receive email alerts for some reason.

- The item was a robotic lawn mower which I checked was covered by the enhanced cover (well at least not excluded).
- The delivery was a standard domestic UK to UK delivery with UPS.

In regards to their T+Cs - they are long but could not find any mention of excluding VAT on the claim. The relevant section is on their website (/en-gb/terms/terms-and-conditions) is section 17.

The most relevant i have seen is : " Enhanced Cover entitles you to claim for the stated value if Your Items are lost or damaged in transit.Not withstanding this, if you declare a different value on Your AWB which is lower than the value of the Enhanced Cover purchased by You, in the event that a Claim ensues, the upper limit of the value of any potential Claim shall be the lower of the sum declared on the AWB or the sum pertaining to the chosen Enhanced Cover. For the avoidance of doubt, the value declared in both instances should be the same."

This is the section of the form that i filled in - they say they will refund me the figure on the left.



Thanks

the_lunatic_is_in_my_head

If they won’t agree to pay the full value including VAT it’s probably best to take their payout to mitigate your losses and then send a letter before action for the rest.