Customs fees on discounted items

longjohnjohnson

Sandtree 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.

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

Nobody in a foreign country is obliged, legally or otherwise, to follow our rules.

It's wishful thinking of HMG (and the EU which implemented similar rules 6 months after us) that foreign companies would sign up to this.

Hiwever it's fairly clear that UK VAT was not paid by the company, which leaves the OP liable for it.

HMRC are not interested in what should have been paid by the company, only in getting their pound of flesh.

The form will get them a resolution, but that is the VAT demand being halved (and they need to pay it first) it won't get them the VAT already paid back.

PeterOHanrahanrahan

Thanks for the replies all.

The store has now refunded the extra 20% paid as a 'goodwill gesture' - they wouldn't confirm or deny if this payment was ever forwarded for the import VAT but seems likely it wasn't.

I assume disputing the charge with HMRC providing evidence of the amount paid should leave me liable just to pay 20% VAT on the item/delivery costs + Parcelforce's £12 fee, and the customs duty and excess VAT (based on full RRP vs amount actually paid) would be refunded?

longjohnjohnson

PeterOHanrahanrahan said:

Thanks for the replies all.

The store has now refunded the extra 20% paid as a 'goodwill gesture' - they wouldn't confirm or deny if this payment was ever forwarded for the import VAT but seems likely it wasn't.

I assume disputing the charge with HMRC providing evidence of the amount paid should leave me liable just to pay 20% VAT on the item/delivery costs + Parcelforce's £12 fee, and the customs duty and excess VAT (based on full RRP vs amount actually paid) would be refunded?

Yes, that's correct.

It is only twenty quid though so I'd probably not bother, but that's just me.

However I'm glad you got a resolution from the company. If they can't be arsed collecting tax for our Government that's fine, but to charge it and then try to give you the middle finger isn't.

PeterOHanrahanrahan

longjohnjohnson said:

PeterOHanrahanrahan said:

Thanks for the replies all.

The store has now refunded the extra 20% paid as a 'goodwill gesture' - they wouldn't confirm or deny if this payment was ever forwarded for the import VAT but seems likely it wasn't.

I assume disputing the charge with HMRC providing evidence of the amount paid should leave me liable just to pay 20% VAT on the item/delivery costs + Parcelforce's £12 fee, and the customs duty and excess VAT (based on full RRP vs amount actually paid) would be refunded?

Yes, that's correct.

It is only twenty quid though so I'd probably not bother, but that's just me.

However I'm glad you got a resolution from the company. If they can't be arsed collecting tax for our Government that's fine, but to charge it and then try to give you the middle finger isn't.

Thanks - probably will claim, every penny counts!

Doubt I'll be bothering with the company again - they were more concerned with expressing their disdain for selling to the UK than actually looking into the issue.

Sandtree

longjohnjohnson said:

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?

Why do you think it hasn't been passed to HMRC?

As the parcel came in declared as over £135 there would be the natural assumption it fell outside of the scheme rules and VAT was chargeable on import.  Filings are made long after parcels are sent and customs declarations forms like CN23 do not ask anything about what taxes have already been charged. 

born_again

longjohnjohnson said:

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?

Sadly, Yes. Retailer has not paid HMRC does not fall under any chargebacks.

OP was billed X by retailer & paid X. HMRC/delivery co now want OP to pay Y for custom/tax/import charges. Seperate charge.