Received package from China with 'Customs Fee to pay' on it. Though already paid VAT on ebay? 27 January at 12:17PM in Cutting tax 9 replies 387 views

greeble

Hey all, I bought some items on eBay from China. Total value was around 220 USD. I already paid the VAT up front at eBay checkout, so assuming it should pass through customs as the duty is paid.

However I received the parcel and it says 'customs fee to be paid' and another label with a breakdown including the VAT and handling fees etc. totalling to £50. It also says 'This package cannot be delivered until the charges are paid' Though they have delivered it to me, so it's a bit confusing as to what I need to do?

I have had situations where I paid import duty fees after the parcel has been delivered, though those weren't eBay purchases and as I said I have already paid the VAT at eBay checkout so they shouldn't have stopped it for VAT and as a result handling fee etc? Any advise? Cheers

DullGreyGuy

Are you sure you paid UK VAT? The order is circa £178 and eBay follows the UK rules and only normally adds VAT on order up to £135.

As the order is over £135 it will be routinely stopped and clearance costs added unless the parcel has been marked up correctly with the relevant codes to show taxes have been prepaid. 

Has anyone actually chased you for the debt or are you just going by whats on the parcel? If the later then sit back and wait but keep the labels/stickers from the parcel for a couple of months at least in case something does turn up. 

greeble

Hey DullGreyGuy, I think the confusion could be that I purchased the items separately at different times, but the seller has packed them together. Definitely paid the Vat on ebay, it doesn't really give you a choice and you can see it being added on at checkout. So if ebay are charging the extra on VAT, where does that money go? Does it go to the customs or the seller?? No idea how it works. Are they supposed to print a special label with all the information saying the tax was paid?

It is the later. I've not been phoned or emailed to pay this money. So as you said, best just to sit back and wait for them to contact me.

DullGreyGuy

If you purchased them in separate transactions then that would make sense... as the individual transactions were under £135 then eBay as a market place is legally required to collect the VAT for goods coming outside the UK. eBay then pays that money to HMRC not the seller... the new post Brexit rules had special rules for anything sold via an online market place (eBay, Amazon Marketplace etc) putting it on the market place rather than the seller to collect and payover the taxes.

What may have confused the matter is the fact the seller has consolidated the orders into a single package which is now over £135 and therefore ordinarily wouldnt have had the taxes paid. 

I'd sit back and wait; if you do receive a letter etc asking for taxes then take the matter up with eBay and point out from the outset that you ordered in 2 transactions but they were consolidated on sending. 

greeble

Thanks man, yeah one item was £135 add the other was £50, though ended up paying more at check out due to VAT. Yeah it's possible the seller has used his own shipping label that does not state the VAT paid for information.

Though not sure why they would have handed over the parcel as they usually keep it?

There is a phone number on the label, am I obliged to call it or still wait until they contact me?

DullGreyGuy

greeble said:

Though not sure why they would have handed over the parcel as they usually keep it?

There is a phone number on the label, am I obliged to call it or still wait until they contact me?

I'd sit back personally but its ultimately up to you.

I dont know how the system works behind the scene with the codes etc to say taxes have been paid so given it was two transactions someone may have stuck the sticker on saying it has to be paid and then seen its a consolidation of two orders but then couldnt take the stickers off.

It maybe the local depot has made a mistake delivering it and they will chase at a later date.

The one problem though is that Duty starts kicking in at £135 and so eBay wouldnt have collected it because the orders individually were under the threashold but together they are over. 

greeble

Oh no, ebay will add VAT on pretty much anything from abroad. So one of the purchases was $63 and they added the VAT of $12.60 making a total of $75.60. I thought every purchase from outside the UK no matter the value has VAT charge on ebay? As I've had it for purchases as little as £10.

sheramber

That is correct.

Anything  below £135 ebay will charge VAT.

£135  and over importer ( you) will pay it.

It looks like sender marked value of package as full combined price so customs charge accordingly.

greeble

I'm hoping if they do chase me up I can show that I paid through ebay who would have paid them. Though one of the items is faulty so need to send back I wonder how that works with import duty? Do you just lose that money or can claim it back? Either way, ebay refunds any vat paid if sending an item back.

expansion

sheramber said:

That is correct.

Anything  below £135 ebay will charge VAT.

£135  and over importer ( you) will pay it.

It looks like sender marked value of package as full combined price so customs charge accordingly.

Is this for items from China or all items from all countries on ebay.co.uk? I need to buy a £90 item from China and a £110 item from USA and don't see the VAT denoted separately.