Received a parcel from the EU and two days later the VAT charge comes

Orcharde

I sent a gift to my daughter from the EU and two days after she receive it in the UK she got a letter from ParcelForce telling her she has to pay £60 in charges, £48 in vat and £12 in handling fees. The parcel was just handed over and two days later a letter arrived.  How can they charge for something without first telling you they will charge you and also how much they will charge you? The goods were to the value of £290. Parcelforce quoted some postal packets regulation 1986 and a postal service act 2000 in their letter to her claiming they could pay up front to HMRC and then charge her afterwards. Is this true? It can’t be right that you charge someone for something that you haven’t told them about.  Thanks.

soolin

Yes it is true, the requirement to pay duty taxes and handling is available if you look into it. It is quite impossible to be forewarned of every eventuality , after all the courier, and therefore HMRC wouldn’t have known she was getting a parcel until it arrived.

This will be chased quite aggressively as HMRC are involved and delaying payment too long might eventually see further charges added. 

bris

They don't need to tell you, as an exporter or importer it's up to you to know that VAT and duty will need to be paid
As the UK is no longer in the EU charges apply.

The_Fat_Controller

Welcome to life outside of the EU !

The system has worked correctly and the recipient is liable for the charges.

sheramber

And if she sends anything to you in the EU there will be customs charges to be paid.

Parcelforce and other couriers  pay the duty to allow the parcel to be released from customs and delivered promptly, rather than waiting until the recipient pays before delivering.

Sandtree

Orcharde said:
Is this true? It can’t be right that you charge someone for something that you haven’t told them about. 

Absolutely, and it has been since 1986 or before hence the acts have been named. If you were in the USA rather than EU it'd been like this for much longer but whilst we were in the EU there was the exception that tax only had to be paid once so assuming you'd paid VAT locally your daughter wouldn't pay it again.

The recipient has always been the one ultimately liable for the fees, in 99% of cases the recipient is the one that instigated the importation... thinking of all the shops in the UK ordering their stock etc. Realistically any country's government will have much more success in claiming unpaid taxes from its citizens (corporate or natural) than trying to get some overseas person to pay (who may or may not have been honestly declared).

Depending on what you are sending it may be worth in the future ordering from a UK based company for delivery to her, still paying VAT but avoid the handling charge.

Andy_L

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

mattyprice4004

Welcome to another lovely Brexit benefit, along with that big red bus that promised hundreds of millions per week for the NHS. 
Unfortunately it'll need to be paid, HMRC will have been paid by Parcelforce so they'll want the money back. 

Just how the system works, it's not perfect but tax / duty need to be paid. 

custardy

I remember when everyone lost their mind couriers held parcels to 'ransom' for import fees.
Now they deliver and folks complain they shouldnt 

MattMattMattUK

custardy said:

I remember when everyone lost their mind couriers held parcels to 'ransom' for import fees.
Now they deliver and folks complain they shouldnt 

The point they lost their mind was when they voted for Brexit, the rest is just a consequence of that decision. 

Thrugelmir

Time to change the record. The world is now a very different place.  As was always very obvious. People always act in their own national interests. The EU looks more divided than ever. Something Putin has developed now ruthlessly exposed economically.