HM Customs VAT Charge on a free item

[Duddyroar]

I've recently been posted something from the US which was sent free of charge, and I have an invoice that proves I paid nothing for the item.

However, I've been charged ?12.01 VAT as well as a ?8 Parcelforce handling charge.

I've gotten in touch with HM Customs and have been told that the charge is based on what the sender has marked as the "value" of the package - which is obviously done in case it gets damaged in transit.

I've also been told there's no chance of a refund, but I'm not entirely convinced the person I spoke to isn't just trying to fob me off.

Anyone know the ins and outs of this?

[CMcK]

I had replacement parts for a GBA TV thingy sent out to me a few years ago and even though the parts cost me nothing I was still charged by HMC. I argued the case but got nowhere.
Its probably not worth pursuing it. And the Parcelfarce handling charge is something you just have to pay anyway.

[Largo]

Doesn't the tax get worked out even on the delivery charge, so even if the item was free, but i had to pay 15£ delivery, they would tax that as the cumulative total? Kind of like this

Item = £5
Delivery = £15
Total = (£20) + tax on entering uk

So with the same regards
Item = £0
Delivery = £15
Total = (£15) + tax on entering uk

So regardless of item cost youre still likely to pay something.

....This probably makes no sense and im totally wrong...

However i am fairly damn sure that the money you end up paying is calculated from the total cost of an item, which includes the amount you paid for the delivery/shipping.



Of course if it was a gift for example, i wanted to post a friend a laptop as an xmas present, so in all regards he/she has no idea what they are receiving or the cost, im sure HMS would still wangle it that they had to pay something, unless theres some kind of reverse charge stuff....yeah all in all ive no idea now, but hey, its customs what do you expect, the godamn vultures!

[Geoff D]

Doesn't the tax get worked out even on the delivery charge

The delivery charge is only taxable if the goods are over the ?18 limit.

[Duddyroar]

But I didn't pay for the delivery charge either. The entire thing was free of charge.

[plopboy]

Was it made i the UK originally? If so then I think you only get charged on the postage. I think my missus managed to argue this when she was charged for some Art Deco pot she got sent from Australia but because it was made here she managed to argue and only get charged on the postage, I think.

[smokedog]

charge is based on what the sender has marked as the "value" of the package - which is obviously done in case it gets damaged in transit.

What was the marked value?

[Lyris]

This is odd. I ordered some BDs in a 2-for-3 promotion from Amazon.com, but Amazon didn't print the reduced price onto the label, so I got charged.

I called HMRC and explained there had been a mistake, and was told to scan my invoice (proving the real cost) and also scan the incorrect customs sticker, and email them to (email address removed) . I got a cheque later.

You should probably call them and ask again; perhaps you can prove to them somehow that the item was free.

[Duddyroar]

Lyris - thanks for that email address, I'll give him a try. That is essentially what's happened in my situation, too.

[charlesr]

removed that email address and PMd to duddy. Email addresses on forums = spam overload.

[Lyris]

D'oh, should have figured - my bad!