Customs fees on discounted items

PeterOHanrahanrahan

I bought an item (safety razor set) from a US based online store which had a sale on with some rather substantial discounts. The discounted price was around £110 inc delivery and as a result the store added 20% for VAT onto the purchase price .

The retailer however has declared the full undiscounted value of the item (around £225) on the customs form, plus 20%  and has therefore attracted customs duties and VAT on the entire amount.

The shop are unwilling to get involved - given their recent admittance that they find UK exports specifically a nuisance to deal with - and have just advised to write to UK customs to query it.

Can anyone advise if the customs value is based on the price the item usually retails for, or the actual price paid by the customer? I intend to query the charge with HMRC regarding VAT being paid for the same parcel twice to them in any case, but I'd appreciate knowing if I can get the customs value reassessed.

Thanks for any advice.

Ergates

It should be based on the amount actually paid.

Sandtree

You can dispute the charge by showing what you actually paid for the item (and that it included UK VAT) using form C285

longjohnjohnson

PeterOHanrahanrahan said:

I bought an item (safety razor set) from a US based online store which had a sale on with some rather substantial discounts. The discounted price was around £110 inc delivery and as a result the store added 20% for VAT onto the purchase price .

The retailer however has declared the full undiscounted value of the item (around £225) on the customs form, plus 20%  and has therefore attracted customs duties and VAT on the entire amount.

The shop are unwilling to get involved - given their recent admittance that they find UK exports specifically a nuisance to deal with - and have just advised to write to UK customs to query it.

Can anyone advise if the customs value is based on the price the item usually retails for, or the actual price paid by the customer? I intend to query the charge with HMRC regarding VAT being paid for the same parcel twice to them in any case, but I'd appreciate knowing if I can get the customs value reassessed.

Thanks for any advice.

So you already paid VAT and then had VAT added on top of that?  You're not going to get a proper resolution with the C285 form suggested above if the retailer has trousered the VAT and hasn't registered with HMRC for VAT (and paid them.)  You'd reclaim half the VAT, but still be stuck paying the 20% the retailer has trousered.

This is chargeback territory, but you'll want to wait for the resident expert, born_again to verify what avenues you have with that.

I suppose S75 is also available if you paid via CC directly.

PeterOHanrahanrahan

Thanks for the replies. I should have mentioned that it's Parcelforce handling the parcel, so at the moment I've only received a letter detailing the charges and the parcel is being held by them at the moment.

Having contacted the store again, which were keen to point to their terms and conditions stating that they aren't responsible for any countries' customs procedures or charges etc, claim the 20% VAT "might be" added on by the system their website uses automatically, but they have no control over this.

I'm guessing the best way forward would be to pay Parcelforce's invoice and contest the charges with HMRC to base their import charges using the actual amount paid, if I can confirm with the store that the VAT I paid them has been remitted to HMRC?

Sandtree

longjohnjohnson said:

PeterOHanrahanrahan said:

I bought an item (safety razor set) from a US based online store which had a sale on with some rather substantial discounts. The discounted price was around £110 inc delivery and as a result the store added 20% for VAT onto the purchase price .

The retailer however has declared the full undiscounted value of the item (around £225) on the customs form, plus 20%  and has therefore attracted customs duties and VAT on the entire amount.

The shop are unwilling to get involved - given their recent admittance that they find UK exports specifically a nuisance to deal with - and have just advised to write to UK customs to query it.

Can anyone advise if the customs value is based on the price the item usually retails for, or the actual price paid by the customer? I intend to query the charge with HMRC regarding VAT being paid for the same parcel twice to them in any case, but I'd appreciate knowing if I can get the customs value reassessed.

Thanks for any advice.

So you already paid VAT and then had VAT added on top of that?  You're not going to get a proper resolution with the C285 form suggested above if the retailer has trousered the VAT and hasn't registered with HMRC for VAT (and paid them.)  You'd reclaim half the VAT, but still be stuck paying the 20% the retailer has trousered.

This is chargeback territory, but you'll want to wait for the resident expert, born_again to verify what avenues you have with that.

I suppose S75 is also available if you paid via CC directly.

Given the invoice is for under £135 the law states that the merchant must have charged VAT... any practical experience of what is happening if a C285 or  BOR286 is submitted showing the gross paid inc P&P is under £135? In my mind it should result in a full refund of the taxes charged by the courier but have no practical experience nor seen guidance notes

OP - as its ParcelForce then you use BOR286 instead

TELLIT01

HMRC charges will be based on the declared value.  If the vendor isn't willing to get involved I really don't think you will get anywhere trying to fight the charges.

sheramber

the vendor may have used the full price for insurance cover.

born_again

longjohnjohnson said:

PeterOHanrahanrahan said:

I bought an item (safety razor set) from a US based online store which had a sale on with some rather substantial discounts. The discounted price was around £110 inc delivery and as a result the store added 20% for VAT onto the purchase price .

The retailer however has declared the full undiscounted value of the item (around £225) on the customs form, plus 20%  and has therefore attracted customs duties and VAT on the entire amount.

The shop are unwilling to get involved - given their recent admittance that they find UK exports specifically a nuisance to deal with - and have just advised to write to UK customs to query it.

Can anyone advise if the customs value is based on the price the item usually retails for, or the actual price paid by the customer? I intend to query the charge with HMRC regarding VAT being paid for the same parcel twice to them in any case, but I'd appreciate knowing if I can get the customs value reassessed.

Thanks for any advice.

So you already paid VAT and then had VAT added on top of that?  You're not going to get a proper resolution with the C285 form suggested above if the retailer has trousered the VAT and hasn't registered with HMRC for VAT (and paid them.)  You'd reclaim half the VAT, but still be stuck paying the 20% the retailer has trousered.

This is chargeback territory, but you'll want to wait for the resident expert, born_again to verify what avenues you have with that.

I suppose S75 is also available if you paid via CC directly.

No chargeback here. As we are talking about import charges. Same with S75. OP has paid what the company charged item at. Pretty sure they will have something in T/C covering not responsible for import charges.
Also wonder if OP has taken local state tax as being VAT?

This is in the ball court of someone who has good knowledge of the import disputes. Given retailer has entered the wrong amount on custom forms.

PeterOHanrahanrahan

It was definitely UK VAT the 20% applied was paid for, also shows on the receipt. Whether or not the merchant recorded this correctly for customs is unclear.

Annoyingly they've misunderstood the issue; they've now replied saying they've sent a replacement out and considered this item 'lost', given that it's been in transit for more than three weeks (delayed in the US). I wouldn't imagine they've corrected the invoice so expecting that one will end the same way.

longjohnjohnson

born_again said:

longjohnjohnson said:

PeterOHanrahanrahan said:

I bought an item (safety razor set) from a US based online store which had a sale on with some rather substantial discounts. The discounted price was around £110 inc delivery and as a result the store added 20% for VAT onto the purchase price .

The retailer however has declared the full undiscounted value of the item (around £225) on the customs form, plus 20%  and has therefore attracted customs duties and VAT on the entire amount.

The shop are unwilling to get involved - given their recent admittance that they find UK exports specifically a nuisance to deal with - and have just advised to write to UK customs to query it.

Can anyone advise if the customs value is based on the price the item usually retails for, or the actual price paid by the customer? I intend to query the charge with HMRC regarding VAT being paid for the same parcel twice to them in any case, but I'd appreciate knowing if I can get the customs value reassessed.

Thanks for any advice.

So you already paid VAT and then had VAT added on top of that?  You're not going to get a proper resolution with the C285 form suggested above if the retailer has trousered the VAT and hasn't registered with HMRC for VAT (and paid them.)  You'd reclaim half the VAT, but still be stuck paying the 20% the retailer has trousered.

This is chargeback territory, but you'll want to wait for the resident expert, born_again to verify what avenues you have with that.

I suppose S75 is also available if you paid via CC directly.

No chargeback here. As we are talking about import charges. Same with S75. OP has paid what the company charged item at. Pretty sure they will have something in T/C covering not responsible for import charges.
Also wonder if OP has taken local state tax as being VAT?

This is in the ball court of someone who has good knowledge of the import disputes. Given retailer has entered the wrong amount on custom forms.

The OP has paid VAT to a retailer which hasn't been passed to HMRC.  Are you sure there isn't?