Import vat query

Tango1947

My wifes twin sister lived in Australia and sadly passed away a few months ago. In her will. She requested that some of her ashes be sent to my wife in the UK. The ashes were sent to us in the post in a sealed container weighing 1.5kg. The postage cost was 76 aud, about £40. When the package arrived in the UK, it obviously went through customs and to our shock we were advised that a import VAT fee was payable. The amount was £104.

Having read the rules, we found that any personal gift valued at over £39 will incur a customs import VAT at the UK rate of 20%. So to incur a vat fee of £104 the gift must have been valued at £520. For whatever reason, the sender had not entered the value of the gift on the postal label, so the UK customs would have no idea what the value of the gift was. So are they justified in slapping on a random value?

Actually, regarding the value of the gift, I don't know how you would place a realistic value on a plastic box containing ashes.

Do you think it's worth appealing against the excessive import fee?

MyRealNameToo

Everything goes by the importation documentation, have you kept all the details? What commodity code did they put down? If no code, what description?

There should be no VAT on an urn containing ashes.

The £104 is likely to include the VAT and the service charge of the agent for doing clearing for you. If the item was valued at over £139 without its content being properly identified its likely duty would also be included and VAT is charged on top of the duty. Note also it's the fully landed price thats used (ie goods + shipping + insurance) not just the cost of the goods themselves.

sheramber

Did the customs declaration state it was an urn with ashes in.

Okell

I would say it has zero value and it wasn't a personal gift.

I'm not really familiar with HMRC import rules but have you led yourself up the garden path by assuming it should be treated as a "personal gift"? Is there a more appropriate category?

As others have said it's vital that the person sending the item fills out the customs declaration documentation correctly. Did they?

I'd say it was worth querying with HMRC

born_again

https://www.gov.uk/guidance/burial-cremation-and-commemoration-of-the-dead-notice-70132#:~:text=7.4%20Bringing%20human%20remains%20to,accompanying%20a%20coffin%20or%20urn