Online order with a surprise Import Tax Bill

MannieG

Hi. I ordered two pairs of boots from an online company who, on the face of it looked like it was based in the UK (customer care had a UK telephone number).  I paid with my credit card, received confirmation with a summary of my purchase with no mention that there would be an additional import tax to pay.  My next communication was from UPS who emailed me confirming delivery BUT stated I had an additional £66.32 to pay in Import Tax.  £54.82 was Import VAT and £11.50 was for Brokerage Charges (UPS fee I assume despite the site saying FREE DELIVERY).  I've rang the company who are based in Holland and complained that there is nothing on their website to state there would be an additional charge to pay, they agree it doesn't and apologised. I obviously will not pay the tax (what if they boots don't fit and I need to return them, how do I get a refund on the import tax etc etc etc) so UPS will just return them.  This is intensely annoying and must be happening all over the country to people ordering on line from EU countries, but amazingly I've not heard anyone complaining about it!! Has anyone else experienced this ?

molerat

If you search there have been many similar threads.  It was also on Rip Off Britain this morning.

Sandtree

Welcome to Brexit... there are at least weekly threads on here about it... and threads about people who refuse delivery and still get chased for the importation costs

mattyprice4004

Ah, another benefit of wonderful Brexit that promised the NHS millions of pounds per year, and an easier life for all of us.

Where you go next depends on what the actual website says - does it actively try and hide that it's not a UK site, or did you not check the 'about us' section to see where they're based? 

If the site doesn't hide that it's Holland based, it's on you (the consumer) not the company to know about fees from importing abroad. Since Brexit any imports outside the UK have been subject to VAT, and UPS will charge a fee for putting the items through Customs clearance too (which isn't included in the 'free' delivery). 

prowla

The EU is a separate country now and that's the way it is.

The free trade deal with the EU covers new items made in the EU, but not those manufactured elsewhere and just being fronted by EU companies; they are subject to import duties.

Many sellers list the item tax-free, which means that people are being taken in by seeing things at apparent bargain prices without realising they don't include VAT.

(Hint: if something EU appears to be around 20% cheaper than the UK price of the same item, then notice that it is suspiciously similar to the VAT amount.)

Of course, you do pay VAT on items anyway, but you should not be double-taxed, so an EU seller could not sell at a price including local tax and then you find yourself charged UK VAT too.

The better EU suppliers are listing goods inclusive of VAT & duties, which eliminates the courier's handling fees from the equation, but some haven't caught up.

All-in-all, it's up to you to check the company's bonafides before you press the "buy" button.

Aylesbury_Duck

MannieG said:

Hi. I ordered two pairs of boots from an online company who, on the face of it looked like it was based in the UK (customer care had a UK telephone number).  I paid with my credit card, received confirmation with a summary of my purchase with no mention that there would be an additional import tax to pay.  My next communication was from UPS who emailed me confirming delivery BUT stated I had an additional £66.32 to pay in Import Tax.  £54.82 was Import VAT and £11.50 was for Brokerage Charges (UPS fee I assume despite the site saying FREE DELIVERY).  I've rang the company who are based in Holland and complained that there is nothing on their website to state there would be an additional charge to pay, they agree it doesn't and apologised. I obviously will not pay the tax (what if they boots don't fit and I need to return them, how do I get a refund on the import tax etc etc etc) so UPS will just return them.  This is intensely annoying and must be happening all over the country to people ordering on line from EU countries, but amazingly I've not heard anyone complaining about it!! Has anyone else experienced this ?

Why would anyone complain, when they've got a nice blue passport now?

sheramber

If you haven't heard of anyone complaining about it them you haven't been reading this forum.

Refusing to pay may not have the result you expect.

UPS have already paid the duty to HMRC customs on your behalf. As a buyer form abroad you are the importer and due to pay this duty.

Others have found that despite refusing delivery/payment they have received debtors letters for the amount.

 

Sandtree

prowla said:

The EU is a separate country now and that's the way it is.

The free trade deal with the EU covers new items made in the EU, but not those manufactured elsewhere and just being fronted by EU companies; they are subject to import duties.

Many sellers list the item tax-free, which means that people are being taken in by seeing things at apparent bargain prices without realising they don't include VAT.

(Hint: if something EU appears to be around 20% cheaper than the UK price of the same item, then notice that it is suspiciously similar to the VAT amount.)

Of course, you do pay VAT on items anyway, but you should not be double-taxed, so an EU seller could not sell at a price including local tax and then you find yourself charged UK VAT too.

The better EU suppliers are listing goods inclusive of VAT & duties, which eliminates the courier's handling fees from the equation, but some haven't caught up.

1. EU isnt a country
2. You are discussing Duty but the OP has only been charged VAT
3. There is nothing illegal or wrong with double taxation, not all countries waive sales taxes like VAT on exports, it only becomes wrong if the seller charges local VAT and doesnt pass it on to their tax man. If its unnecessary then they are shooting themselves in the foot as they;ll be less competitive due to the double tax but not a legal issue.
4. All suppliers globally have to include taxes, excluding Excise, for orders under £135 (if a small artist trying to sell their works online from Kenya knows this is another matter). For orders over £135 its the importers responsibility however services are offered for the sender to be billed however most couriers require an account of a certain size before offering this service. Its not just about being "better" but having enough UK business to be able to offer the service.

bris

We are now having to tread carefully when shopping online. 

Bottom line is it's not their job to warn you of import  costs. You are the importer.

A .CO.U.K.   website and phone number just means they ship to the uk not that they are based here.

Their website will have the information, you just need to make sure before buying.

sparklep0ny

bris said:

We are now having to tread carefully when shopping online. 

Bottom line is it's not their job to warn you of import  costs. You are the importer.

A .CO.U.K.   website and phone number just means they ship to the uk not that they are based here.

Their website will have the information, you just need to make sure before buying.

I don't think we really have to tread much more carefully than before.

We need to assume EU companies will have a VAT bill attached unless there is anything to the contrary, but as this company appeared to "hide" where they're based anyway, they could have been American, Japanese or Chinese for all the difference it would have made.

The rule is and always has been, make sure you know where they're based before you purchase.

Thrugelmir

sparklep0ny said:

bris said:

We are now having to tread carefully when shopping online. 

Bottom line is it's not their job to warn you of import  costs. You are the importer.

A .CO.U.K.   website and phone number just means they ship to the uk not that they are based here.

Their website will have the information, you just need to make sure before buying.

I don't think we really have to tread much more carefully than before.

We need to assume EU companies will have a VAT bill attached unless there is anything to the contrary, but as this company appeared to "hide" where they're based anyway, they could have been American, Japanese or Chinese for all the difference it would have made.

The rule is and always has been, make sure you know where they're based before you purchase.

Many major brands operate from centralised European distribution hubs. Their "UK" websites quote prices fully inclusive of all taxes. Majority of boots and shoes. Come out of Asia these days.