Posted 18 hours ago
Aliexpress, VAT, HMRC - how to sort incorrect Customs Charge?
Long story short I bought a miniPC at Aliexpress and paid for it in US Dollars.
The Tax Invoice from the seller shows: net cost $146.40 + tax @ 20% of $29.28 and total cost as $175.68. The invoice also shows the total cost including VAT in £s as £145.48.
Today, I received a Royal Mail fee notice asking me to pay a Customs charge of £36.08 (which looks like 20% of the the total cost in £s + the £8 RM handling fee) before they would release the package to me.
I clearly have proof that VAT was charged at source by the seller. My questions are simple but I can't seem to find the answers so I'm hoping someone here can help.
Many thanks to anyone who can help me navigate this minefield.
The Tax Invoice from the seller shows: net cost $146.40 + tax @ 20% of $29.28 and total cost as $175.68. The invoice also shows the total cost including VAT in £s as £145.48.
Today, I received a Royal Mail fee notice asking me to pay a Customs charge of £36.08 (which looks like 20% of the the total cost in £s + the £8 RM handling fee) before they would release the package to me.
I clearly have proof that VAT was charged at source by the seller. My questions are simple but I can't seem to find the answers so I'm hoping someone here can help.
- What do I need to do to avoid paying VAT (the Customs charge) twice?
- If I have to pay the Customs charge as the only way of getting hold of the PC, how do I then reclaim the Customs charge from HMRC?
Many thanks to anyone who can help me navigate this minefield.
Community Updates
6 Comments
sorted by2 separate items
Vat is charged on everything that falls into that category, from sugar to cars. Perhaps at different rates (energy 5%, cars 20%), but few items escape it (children's clothes).
Import duty is based on the recorded, or actual market rate of the item as charged in the UK. I tried to import cigarettes legally from France when they were cheap, but the import duty was based on the price as sold here. It was more costly to import than to buy from the corner shop.
More often than not, if the package seems realistically priced then it goes through as appropriate, however, if the seller obviously under prices the item, then things can get bad financially, and legally.
You can't claim it back (edited)
I've not had to do it myself though, so can't really share any experiences.