VAT charged twice i.e 40% on imported goods 9 November 2022 at 10:58PM in Ebay, auctions, car boot sales, post & parcels 5 replies 145 views

Searc

Seems like I'm first in UK who faced a problem

It is very simple

Goods bought from China at online marketplace.

2 orders placed to a trader

1st order on total £100.00

2nd order on total £50.00

As per rules valid from 1st January 2021 each order less than £135.00 is charged VAT at the point of sale so

on 1st order I paid £20.00 VAT

on 2nd order I paid £10.00 VAT

Look at hands now!

Trader decided to combine postage and dispatched both orders in a single consignment with face value £150.00

Because the consignment is now over £135.00 threshold it is a subject of custom clearance at UK border force and RM collected £30.00 VAT from £150.00 again!

Overall I paid £60.00 of VAT on goods valued £150.00!

I did try to communicate with Border Force regarding the problem of VAT double charge and refund but useless

I have 2 letters now from Border Force explaining how VAT is payable on consignments valued over £135.00 and confirming "the Courier have correctly charged VAT on your goods"

Looks like all parts involved in collecting of import VAT did their work properly but final result is dramatically incorrect.

Any advice how to get overpaid VAT back?

Thanks

theoretica

Can the trader cancel the two separate transactions and replace them with a single one?  It was their action which caused this.

Searc

theoretica said:

Can the trader cancel the two separate transactions and replace them with a single one?  It was their action which caused this.

May be, but because the transactions completed over 2 months ago it may be a problem to revise it.

Actually trader is not involved in collection of VAT and they know nothing about it

It is automatically processed on online marketplace side.

I will try to contact a marketplace about

Thanks for advice!

the_lunatic_is_in_my_head

eBay says they refund the VAT you was charged by them if you show them you've had to pay it again.

What Amazon or the likes of Aliexpress will do I don't know.

Which marketplace did you buy from? 

Searc

the_lunatic_is_in_my_head said:

eBay says they refund the VAT you was charged by them if you show them you've had to pay it again.

What Amazon or the likes of Aliexpress will do I don't know.

Which marketplace did you buy from? 

Bought from Ali

RFW

You'd have to try and get it back from Ali. You won't get anywhere with HMRC, as far as they're concerned it wasn't paid.

It sounds like you found the first Chinese seller who declares the right value on their packages. I've never had one yet!