UPS incorrectly applied VAT to an import - what to do?

captainkev76

Afternoon all.

I ordered a bicycle helmet from Spain last week, and my understanding was that these items are VAT exempt/zero-rated as per VAT notice 701/23 (the helmet confirms to the relevant safety standards). UPS have decided that VAT is due on it though, so the fees have gone from ~£13 to ~£47. I spend 2 hours on the phone to UPS yesterday getting passed from department to department in different countries - I eventually was told to email ukpostclear@ups.com with the information. I done this and got an auto-response saying that they'll follow it up within 40 days. In the meantime, UPS have my helmet out for delivery and will want paid before they hand it over. Should I pay it and hope UPS refund it some time in the future, or should they keep it until it's resolved? I'm fully expecting them to not get back to me at all or at best say tough luck. If this should happen, are there any means of appeal?

Thanks for all advice!

Kevin

p3ncilsharpener

captainkev76 said:

Afternoon all.

I ordered a bicycle helmet from Spain last week, and my understanding was that these items are VAT exempt/zero-rated as per VAT notice 701/23 (the helmet confirms to the relevant safety standards). UPS have decided that VAT is due on it though, so the fees have gone from ~£13 to ~£47. I spend 2 hours on the phone to UPS yesterday getting passed from department to department in different countries - I eventually was told to email ukpostclear@ups.com with the information. I done this and got an auto-response saying that they'll follow it up within 40 days. In the meantime, UPS have my helmet out for delivery and will want paid before they hand it over. Should I pay it and hope UPS refund it some time in the future, or should they keep it until it's resolved? I'm fully expecting them to not get back to me at all or at best say tough luck. If this should happen, are there any means of appeal?

Thanks for all advice!

Kevin

I suspect if you refuse to pay (and they won't deliver) they won't hang onto it for very long.  Better to pay and dispute afterwards.

jon81uk

Might need to pay UPS and then claim it back from HMRC.

sheramber

I donlt think UPS decide what import fees are due.

HMRC tell them how much is due and they pay it on your behalf.

Whether the item was exempt may rely on what was entered on the customs declaration by the seller.

captainkev76

That's the most frustrating thing - they won't share the customs declaration document with me. So looks like I'll need to pay the VAT and claim afterwards.

Anyone know how to go about reclaiming the VAT from HMRC? I could only find a form for if it was delivered by ParcelForce or Royal Mail

Sandtree

https://www.gov.uk/goods-sent-from-abroad/tax-and-duty 

Links to the digital forms are at the bottom of the page.

HMRC ultimate say what to charge based on the information provided by the sender via UPS. If the sender has chosen the wrong code or its a poor translation into english it can trigger the charge 

The downside is you wont get the UPS handling fee back