FedEx - tax

kizW

Hi. Pls help. I bought a pan from Europe in December 2020 & was told it would be delivered before Christmas…. Therefore no import tax. It wasn’t sent until feb & so fedex say I must pay the tax. I have repeatedly contested this. It’s now been sent to an ControlAccount. On the phone a customer services agent thought that the government had put in place a waiver for people in my position. When I have contested it they have just said I still need to pay. 

Does anyone know if the government has put a waiver in to help people in this position. 

I would pay it but usually but it’s not my fault the Italian company didn’t send the parcel until 2 months after I purchased the item & when I bought it the tax didn’t exist.

thank you for your help

sheramber

I think you have to pay it as Customs do not know when you ordered, Only when itt came through customs. It is HMRC  who charge the duty. Fedex pay it on you behalf to avoid you having to go and collect your parcel yourself.

You would need to claim the amount back from HMRC or you could try asking the Italian company to pay it since they didn't deliver when they said they would.

kizW

Thank you. 

mattyprice4004

It'll be down to the sender to refund this - when the business I work for was in this position we refunded then charged the customer again but without VAT. 

visidigi

kizW said:

Hi. Pls help. I bought a pan from Europe in December 2020 & was told it would be delivered before Christmas…. Therefore no import tax. It wasn’t sent until feb & so fedex say I must pay the tax. I have repeatedly contested this. It’s now been sent to an ControlAccount. On the phone a customer services agent thought that the government had put in place a waiver for people in my position. When I have contested it they have just said I still need to pay. 

Does anyone know if the government has put a waiver in to help people in this position. 

I would pay it but usually but it’s not my fault the Italian company didn’t send the parcel until 2 months after I purchased the item & when I bought it the tax didn’t exist.

thank you for your help

FedEx are doing what they are told to do by the shipper. The 'waiver' you refer to does exist, but to apply the paperwork submitted by the shipper to FedEx, which FedEx submits to HMRC, must clearly state the date of sale.

I would pay it, then take it up with the seller of the goods you bought.

peteuk

What was the cost (Including Postage and package) if it is over £39 then you will be charged VAT on this , this is levied by HMRC and the delivery company usually pay for it and then you pay them.  They will usually hold the item until the tax is paid.  If not paid within 28 days then they have the right to return to sender. 

You can pay the tax, receive the goods and the dispute the tax.  However there's no guaranty they will find in your favor. 

However, VAT and overseas goods sold directly to customers in the UK - GOV.UK (www.gov.uk) clearly states that if the seller receives the payment before 11pm on 31 December 2020 but dispatches the goods after this then this rule does not apply.   So regardless of when it was ordered your claim would be focused on when the payment was received.  For example order placed 01 Dec 20, payment left account 03 Dec 20 then you should be able to prove this and claim tax back.  However if order was placed 01 Dec but the money didnt leave your account until 02 Jan 21 then its going to be harder. 

Pay the tax, receive the goods and then claim back on a form available from HMRC. 

ItsComingRome

peteuk said:

What was the cost (Including Postage and package) if it is over £39 then you will be charged VAT on this , this is levied by HMRC and the delivery company usually pay for it and then you pay them.  They will usually hold the item until the tax is paid.  If not paid within 28 days then they have the right to return to sender. 

You can pay the tax, receive the goods and the dispute the tax.  However there's no guaranty they will find in your favor. 

However, VAT and overseas goods sold directly to customers in the UK - GOV.UK (www.gov.uk) clearly states that if the seller receives the payment before 11pm on 31 December 2020 but dispatches the goods after this then this rule does not apply.   So regardless of when it was ordered your claim would be focused on when the payment was received.  For example order placed 01 Dec 20, payment left account 03 Dec 20 then you should be able to prove this and claim tax back.  However if order was placed 01 Dec but the money didnt leave your account until 02 Jan 21 then its going to be harder. 

Pay the tax, receive the goods and then claim back on a form available from HMRC. 

The £39 limit only applies to gifts, not purchases.

Purchases attract VAT regardless of their value.