Request of VAT supplement from a purchase of goods from China - is it legit?

dan_first_time_buyer

Hi,

A couple of months ago I made a business purchase from a Chinese supplier - it was electronics goods. It was around £15. The goods arrived and I was happy with it.

Yesterday they sent me an email asking me to pay a supplement for VAT. I'd like to understand whether that is something I'd have to do.

Here is their email (I've reducted some details):

"Sorry to bother you, but there is a problem for your parcel DHL *****.

Due to the wrong VAT number you provided,we helped you to pay the VAT difference $4.38.

So we have activated the supplement link on order ******.Please kindly charge it.

For the orders in the future,please type in the correct VAT number when you place the order."

When I placed the order the form asked for my VAT number, but I entered N/A as I am not registered for VAT. I've checked the original invoice and it seems VAT was not charged at that point.

Do I really need to pay VAT? And why to them rather than to HMRC?

Any help would be very much appreciated.

Thanks,
Dan

Thrugelmir

If there was VAT to pay you would have been charged at the point of entry into the UK. The charge would have been levied by the importation/delivery agent. Ignore the email.  

bris

Of course there is VAT to pay, it was an import from China.

Looks like they paid the VAT for you and want it back, as the importer you are liable for this VAT. it's now up to you whether you do the right thing or not.

dan_first_time_buyer

bris said:

Of course there is VAT to pay, it was an import from China.

Looks like they paid the VAT for you and want it back, as the importer you are liable for this VAT. it's now up to you whether you do the right thing or not.

Thank you. Makes sense. Just for me to understand this better, is that VAT payment owed to HMRC? If so, how is the Chinese supplier going to pass it on to HMRC? Are they charged UK VAT at customs?

Thrugelmir

Which website did you buy the item from? 

dan_first_time_buyer

Thrugelmir said:

Which website did you buy the item from? 

JLCPCB.com - they sell printed circuit boards based on the design provided by the customer.

Sandtree

Thrugelmir said:

If there was VAT to pay you would have been charged at the point of entry into the UK. The charge would have been levied by the importation/delivery agent. Ignore the email.  

It was under £135 and so should have been charged by the merchant and paid to HMRC by them... remember the rules changed over a year ago now. 

dan_first_time_buyer said:

bris said:

Of course there is VAT to pay, it was an import from China.

Looks like they paid the VAT for you and want it back, as the importer you are liable for this VAT. it's now up to you whether you do the right thing or not.

Thank you. Makes sense. Just for me to understand this better, is that VAT payment owed to HMRC? If so, how is the Chinese supplier going to pass it on to HMRC? Are they charged UK VAT at customs?

They are not charged at customs, they are supposed to be registering with HMRC in advance and charging VAT in advance... failure to do so is tax evasion by them in the same way as it would be for a UK company... clearly its questionable how enforceable it is by HMRC but you'd hope this was considered when the law was changed on 1/1/21 and the floor for VAT payments were removed. Its somewhat helped by the fact for orders via "market places" (eg eBay, Amazon etc) then the "market place" has to deal with the VAT not the merchant. 

Is this a genuine request? Will they actually pay it on to HMRC? Arguably all questionable and some will argue that their location means its more likely that they are going to be comfortable with not paying foreign governments. What the chances of them taking enforcement action against you given locations and amounts? Will you ever want to order from them again?

dan_first_time_buyer

So many good points - thanks @Sandtree !