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Default OT: Customs duty, a cautionary tale

Recently, I ordered something (costing about £700) from the Czech
republic and have just been sent a demand for £143 duty and handling
from DHL. My choices are to refuse the shipment, which means I get
refunded less shipping charges, or pay. Bu&&er!
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Default OT: Customs duty, a cautionary tale

In article ,
wrote:
Recently, I ordered something (costing about 700) from the Czech
republic and have just been sent a demand for 143 duty and handling
from DHL. My choices are to refuse the shipment, which means I get
refunded less shipping charges, or pay. Bu&&er!


There been enough publicity over import charges over the last 4 months. I'm
surprised you hadn't anticipated this. VAT alone would be 140 on a 700
item.

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Default OT: Customs duty, a cautionary tale

GB a crit :
One of the consequences of Brexit.


The consequence is you pay UK VAT and not Czech VAT.

The VAT now goes the UK Treasury.


'Conseqences'? Instead of paying VAT to the Czech government, he will
instead be paying it to the UK Governemnt. The Chinese, as usual, are
ahead of the game, they charge the VAT on ordering, which they are then
supposed to send to the UK Goverment???
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Default OT: Customs duty, a cautionary tale

JNugent a crit :
Most of that will be VAT, I suggest.


They usually claim 10 to 15 extra, for handling the collection of
VAT.
Pay at source and that extra is avoided. 10 extra on a small cheap
item, is a lot.
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Default OT: Customs duty, a cautionary tale

GB wrote:

Fredxx wrote:

The VAT now goes the UK Treasury.


That's not of great comfort to the OP, faced with an unexpected bill for
£143. Anyway, hopefully he voted for Brexit, so at least he voted for
this fiasco.


brexit or none, the price difference is probably £7 less VAT and £10
more handling charge. An extra £3 on an £840 item is neither here nor there.
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Default OT: Customs duty, a cautionary tale

Harry Bloomfield wrote:

The Chinese, as usual, are ahead of the game, they charge the VAT on
ordering, which they are then supposed to send to the UK Goverment???


Only for "low value" orders, if it was over 135 it'd be charged the
same way that the czech seller did.



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Default OT: Customs duty, a cautionary tale

On 13/05/2021 04:57 pm, Harry Bloomfield wrote:
GB a crit :
One of the consequences of Brexit.

The consequence is you pay UK VAT and not Czech VAT.

The VAT now goes the UK Treasury.


'Conseqences'? Instead of paying VAT to the Czech government, he will
instead be paying it to the UK Governemnt. The Chinese, as usual, are
ahead of the game, they charge the VAT on ordering, which they are then
supposed to send to the UK Goverment???


Both systems are in operation.

Paying the VAT at the UK end is for items costing more than a certain
amount (more than 100, less than 200).
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Default OT: Customs duty, a cautionary tale

On 13/05/2021 04:59 pm, Harry Bloomfield wrote:

JNugent a crit :


Most of that will be VAT, I suggest.


They usually claim 10 to 15 extra, for handling the collection of VAT.
Pay at source and that extra is avoided. 10 extra on a small cheap
item, is a lot.


The item has to be more than 135 or so for that system to operate.

10 extra on a 900+ item (when including VAT, duty (if any) and VAT),
not so much.
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Default OT: Customs duty, a cautionary tale

On 13/05/2021 17:43, Steve Walker wrote:

But it is a net benefit to the UK, as the balance of trade with the EU
is heavily biased to importing rather than exporting.


In 2019, UK exports to the EU were £294 billion (43% of all UK exports).
UK imports from the EU were £374 billion (52% of all UK imports).


So, the benefit is £16bn? Except that exports are down, as nobody can do
the paperwork.





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Default OT: Customs duty, a cautionary tale

Harry Bloomfield, Esq., wrote:
GB a écrit :
One of the consequences of Brexit.

The consequence is you pay UK VAT and not Czech VAT.

The VAT now goes the UK Treasury.


'Conseqences'? Instead of paying VAT to the Czech government, he will
instead be paying it to the UK Governemnt. The Chinese, as usual, are
ahead of the game, they charge the VAT on ordering, which they are then
supposed to send to the UK Goverment???


It's down to the amount whether the sender charges UK VAT or not,
nothing to do with where it came from.

For purchases valued up to (I think it is) £135 the seller has to
collect the UK VAT and pass it on to HMRC. For purchases over this
amount the seller doesn't charge VAT but it will be charged somehow
when the item comes into the UK.

I.e. you now get charged 'tax' in addition to the advertised price
when you buy things from AliExpress, previously it was very rare to be
charged any VAT/Tax at all.

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Default OT: Customs duty, a cautionary tale

On 13/05/2021 16:22, The Natural Philosopher wrote:
AFAICR that is how it was, despite variable VAT rates between EU nations (there were no fuel stations in Luxembourg last time I drove through it - everyone drove into Belgium, to fill up)


Every time I drive through Luxembourg I fill up the car - petrol there is easily the cheapest in any of the European countries that I know of even in a motorway service station. A very easy one to find on the motorway a km or two before the Belgian border when heading west. We can usually get back to the UK on a full tank. It's a couple of years since we were last there but I'd be surprised if relative prices have changed that much.

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Default OT: Customs duty, a cautionary tale

On Thursday, 13 May 2021 at 17:22:12 UTC+1, Andy Burns wrote:
Harry Bloomfield wrote:

The Chinese, as usual, are ahead of the game, they charge the VAT on
ordering, which they are then supposed to send to the UK Goverment???

Only for "low value" orders, if it was over £135 it'd be charged the
same way that the czech seller did.


Absolutely correct.

Anything over £135 is treated as a business transaction and liable for duty (if applicable). Whereas below £135 it is treated as retail and ignored for duty.

EU is also moving to charge VAT at the rate due in the country to which goods are delivered. Not sure if they have yet done so.
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polygonum_on_google wrote:

EU is also moving to charge VAT at the rate due in the country to which goods are delivered. Not sure if they have yet done so.


The EU was due to bring in their VAT reforms in January, but delayed it
to July due to covid, the UK stuck with January due to brexit.
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Default OT: Customs duty, a cautionary tale

On 13/05/2021 21:25, Clive Page wrote:
On 13/05/2021 16:22, The Natural Philosopher wrote:
AFAICR that is how it was, despite variable VAT rates between EU
nations (there were no fuel stations in Luxembourg last time I drove
through it - everyone drove into Belgium, to fill up)


Every time I drive through Luxembourg I fill up the car - petrol there
is easily the cheapest in any of the European countries that I know of
even in a motorway service station.* A very easy one to find on the
motorway a km or two before the Belgian border when heading west.* We
can usually get back to the UK on a full tank.* It's a couple of years
since we were last there but I'd be surprised if relative prices have
changed that much.

Perhaps I misremember it and it was in fact the other way around. It's
been over 15 years...

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Default Customs duty, a cautionary tale

One might have expected that the seller would have added the tax to the bill
as that is how vat etc is supposed to work.
Brian

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...
Recently, I ordered something (costing about 700) from the Czech republic
and have just been sent a demand for 143 duty and handling from DHL. My
choices are to refuse the shipment, which means I get refunded less
shipping charges, or pay. Bu&&er!



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Default Customs duty, a cautionary tale

On Friday, 14 May 2021 at 09:32:15 UTC+1, Brian Gaff (Sofa) wrote:
One might have expected that the seller would have added the tax to the bill
as that is how vat etc is supposed to work.
Brian


If you sold or even made a present of one of your possessions to someone in another country, would you know what the proper procedures are for that country? And how would you charge VAT - if it were applicable?

The under-£135 rules that the vendor charges VAT at the destination country's rate - and remit that VAT to HMRC if sending to the UK, can only work smoothly if the vendor is registered in the destination country. Which is why so many will no longer send things to the UK. The cost and effort of registering and making sure your procedures are properly implemented is a significant overhead.

In general, big companies can do this. Shopping gateways like Etsy can do this. But one-man-or-woman-and-a-dog outfits really can't. Hence, if they did send something, it would be assessed and VAT charged as it goes through Customs. With the attendant extra costs.


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Default Customs duty, a cautionary tale

Brian Gaff wrote:

One might have expected that the seller would have added the tax to the bill
as that is how vat etc is supposed to work.


not any more, or at least not in all cases.

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Default Customs duty, a cautionary tale

In article ,
Brian Gaff \(Sofa\) wrote:
One might have expected that the seller would have added the tax to the
bill as that is how vat etc is supposed to work.
Brian


I buy quite a bit from the US. From a mid sized company. They don't.

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Default OT: Customs duty, a cautionary tale

On Friday, 14 May 2021 at 10:59:52 UTC+1, nightjar wrote:
On 13/05/2021 19:05, Tim Streater wrote:
On 13 May 2021 at 16:42:41 BST, nightjar wrote:

On 13/05/2021 16:03, Fredxx wrote:
On 13/05/2021 15:24, nightjar wrote:
On 13/05/2021 14:05, wrote:
Recently, I ordered something (costing about £700) from the Czech
republic and have just been sent a demand for £143 duty and handling
from DHL. My choices are to refuse the shipment, which means I get
refunded less shipping charges, or pay. Bu&&er!

One of the consequences of Brexit.

The consequence is you pay UK VAT and not Czech VAT.

In addition, like the OP, you also get a bill for customs duty, which
was not something you needed to pay wile we were part of the Customs Union.


Indeed, we just paid it in bulk instead. £350 million per second, or century,
or something, wasn't it? Which included the markup to pay for all those other
nations with their snouts in the EU trough.


Totally unrelated. Customs duty is a levy HM government makes on us for
buying from abroad. While we were still in the Customs Union, the EU did
not count as abroad for the purposes of duty.


What is more, the decision as to classification of goods as to whether they are subject to duty, and the rate, can be complex.

One classic is that the sources of ingredients can switch an otherwise identical product from one class to another. So you might have to know details which are beyond what any ordinary customer would ever know.
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Default Customs duty, a cautionary tale

Dave Plowman wrote:

Brian Gaff wrote:

One might have expected that the seller would have added the tax to the
bill as that is how vat etc is supposed to work.


I buy quite a bit from the US. From a mid sized company. They don't.


I recently bought some second-hand items from a US seller, it was the
first time I'd used eBay's 'Global Shipping Programme", I have to say it
worked quite well.

The person posted the items via USPS to an eBay centre.

Then eBay opened, checked and re-packed the item, calculating VAT and
duty (actually just confirming the amounts at time of auction were
correct) charged an additional postage amount.

Handed it over to Pitney Bowes for export.

In the UK it was handed over to Hermes, all confirmed as nothing to pay
here and delivered as usual.

It was trackable from end-to-end like any delivery, through a "meta"
tracking number.

All-in-all $90 for the items became $131, but that was all paid as the
winning bid on the item.
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