Assistance with VAT on Imported Goods

MR1988

Hello! I have ordered a video game from France back in December and the video game has been delivered a few days later. Fast Forward a few weeks and mid-January I was sent an invoice from Fedex/TNT stating that they paid duties/vat on my behalf and that I owe them x amount of money.

If I have to pay, I have no problem paying, but I believe the bill sent to me is incorrect. I contacted TNT and they said I should contact HMRC/GOV to dispute the bill.

Details of the goods ordered:

Video game: 37.49

Shipping and handling: 17.35

Taxes (20%): 10.97

Total: 65.81

Invoice from Fedex/TNT:

Duties Type: 0.02

VAT Type: 27.45

Processing Fee: 8.24

VAT: 1.65

Total: 37.36

My understanding is that VAT should have been 20% of the total so approximately 13.16 not 27.45. Am I missing something with these figures and if so what is it?

I don't have the original packaging in which the item has been sent as I discarded this upon arrival. I do have a digital invoice delivered to me through email from the store I ordered from.

Thank you!

Hoenir

Was the 20% charged on the original invoice French VAT by any chance ? 

DullGreyGuy

MR1988 said:

Hello! I have ordered a video game from France back in December and the video game has been delivered a few days later. Fast Forward a few weeks and mid-January I was sent an invoice from Fedex/TNT stating that they paid duties/vat on my behalf and that I owe them x amount of money.

If I have to pay, I have no problem paying, but I believe the bill sent to me is incorrect. I contacted TNT and they said I should contact HMRC/GOV to dispute the bill.

Details of the goods ordered:

Video game: 37.49

Shipping and handling: 17.35

Taxes (20%): 10.97

Total: 65.81

Invoice from Fedex/TNT:

Duties Type: 0.02

VAT Type: 27.45

Processing Fee: 8.24

VAT: 1.65

Total: 37.36

My understanding is that VAT should have been 20% of the total so approximately 13.16 not 27.45. Am I missing something with these figures and if so what is it?

I don't have the original packaging in which the item has been sent as I discarded this upon arrival. I do have a digital invoice delivered to me through email from the store I ordered from.

Thank you!

Do you still have the customs declaration? TNT will have provided what the sender put on that to HMRC and the taxes will have been calculated on the same. 

You dont pay duty on parcels with a landed price under £135 but without the declaration form its going to be hard to workout what's gone wrong... has the sender entered the wrong details or has TNT miskeyed them from the form. 

You would dispute it with HMRC by showing the sales invoice that correctly identifies the value and contents.

MR1988

I see on original invoice Taxes (20%).

Unfortunately I do not have the declaration piece of paper anymore. I discarded the packaging back in December. I'll try have another look around the house but I doubt I'll find it. Didn't think I would need it as I wasn't expecting a VAT invoice from the border.

Hoenir

MR1988 said:

Unfortunately I do not have the declaration piece of paper anymore.

That's the key. 

DullGreyGuy

You could ask the vendor if they have a copy... if they're a decent size business it will be electronic so they will, if it's small it may be handwritten so not repeatable. At the same time make them aware of the problem and clarify if it UK or French VAT on the original sales invoice. The French VAT should have been 0% and they should have charged UK VAT. Was it bought on eBay or another market place or....?

RFW

MR1988 said:

I don't have the original packaging in which the item has been sent as I discarded this upon arrival. I do have a digital invoice delivered to me through email from the store I ordered from.

In my experience FedEx/TNT rely on that and that's why they issue these invoices, sometimes long after it was received. The majority of couriers will ask for it upfront before delivery.

You can still dispute it with HMRC and request the documents from TNT with the charges from HMRC clearly laid out.

I disputed one some time ago and FedEx were quite rude and adamant that I had to pay, I refused and they continued to send letters, eventually passing to a debt collector who I told the amount was disputed and to send it back to FedEx. It all went quiet after about 18 months. I would have been happy to have disputed it in court.

I'd be happy for this practice to be looked at as it's a mess and looks to me as though the system is occasionally being played to the benefit of the couriers.

Hoenir

RFW said:

MR1988 said:

I don't have the original packaging in which the item has been sent as I discarded this upon arrival. I do have a digital invoice delivered to me through email from the store I ordered from.

In my experience FedEx/TNT rely on that and that's why they issue these invoices, sometimes long after it was received. The majority of couriers will ask for it upfront before delivery.

The couriers act as Agents for the HMRC. The import documetation is the primary basis for charges levied. 

RFW

Hoenir said:

RFW said:

In my experience FedEx/TNT rely on that and that's why they issue these invoices, sometimes long after it was received. The majority of couriers will ask for it upfront before delivery.

The couriers act as Agents for the HMRC. The import documetation is the primary basis for charges levied. 

I'm aware. It still doesn't prevent them putting their own surcharges on for what is, essentially, what they're paid for. FedEx are renowned for sending invoices several weeks after the item has been delivered. Other couriers can manage to do that before delivery. You have to wonder why there isn't an industry standard and why there is such disparity of charges between couriers for their own handling fees.

martindow

RFW said:

Hoenir said:

RFW said:

In my experience FedEx/TNT rely on that and that's why they issue these invoices, sometimes long after it was received. The majority of couriers will ask for it upfront before delivery.

The couriers act as Agents for the HMRC. The import documetation is the primary basis for charges levied. 

I'm aware. It still doesn't prevent them putting their own surcharges on for what is, essentially, what they're paid for. FedEx are renowned for sending invoices several weeks after the item has been delivered. Other couriers can manage to do that before delivery. You have to wonder why there isn't an industry standard and why there is such disparity of charges between couriers for their own handling fees.

I suppose they are competing companies so arranging amongst themselves to set standard charges would be acting as an uncompetitive cartel.  Fedex invoice later as they are aiming at a business market who would expect to be invoiced and pay monthly for all of their imports.  

I do wonder how much they lose out though, as I imagine quite a lot of individuals fail to pay and HMRC will want the tax regardless.  Do Fedex hold parcels and demand fees in advance for addresses where there is a history of money owing?

DullGreyGuy

RFW said:

Hoenir said:

RFW said:

In my experience FedEx/TNT rely on that and that's why they issue these invoices, sometimes long after it was received. The majority of couriers will ask for it upfront before delivery.

The couriers act as Agents for the HMRC. The import documetation is the primary basis for charges levied. 

I'm aware. It still doesn't prevent them putting their own surcharges on for what is, essentially, what they're paid for. FedEx are renowned for sending invoices several weeks after the item has been delivered. Other couriers can manage to do that before delivery. You have to wonder why there isn't an industry standard and why there is such disparity of charges between couriers for their own handling fees.

Their agents of the importer not HMRC as they are doing the clearance for the importer and paying their taxes for them before recharging them to the importer. 

Ultimately the law allows them to do so what company isnt going to? As noted, they give you credit for the taxes they pay on your behalf without going through a thorough vetting process and then attempt to recover them after. As noted by RFW, some dont get paid so the fee helps cover those taxes they pay and never get back. 

You arent obliged to use them for clearing, you could do your own clearing and pay HMRC directly but you need the appropriate software etc or to pay a different customs agent but for the occasional parcel they will both be much more expensive than what a courier charges.