Import Charges on purchase below £135

[2015.banag]

I just bought a car part from Japan, The Original price was £136.24 but EBay had a 20% Black Friday discount so the price was £108.99 total including shipping but now I’ve got a £41.54 customs charge to pay as the courier says it was over £135, is this correct or should I have no extra charges as I’ve paid £108.99 total ? Thanks 

[sml192]

If you paid less than £135 then Supply VAT will have been collected by eBay and there shouldn't be any additional customs charges to pay on delivery.  It looks as though the seller has entered the wrong value (original price instead of the reduced price) on the customs paperwork.

You can either pay the customs charges and then claim back the overcharge from HMRC (although note you won't be able to to get the carrier's admin fee refunded) or you can refuse the customs charge and open an 'Item not received' dispute as you would be covered in these circumstances under the terms of eBay's Money Back Guarantee:

The item was posted internationally and didn't clear customs because fees or duties weren't paid

Covered:

• The seller overstated the value of the item or misrepresented the item's location, which caused customs fees or duties to be higher

Not covered:

• The buyer didn't pay applicable customs fees or duties for any other reason

[2015.banag]

Thanks I have spoken to the seller and on they’re invoice it says I paid £136.24 and they have no mention of the discount, it was an EBay U.K. Black Friday discount so I paid £108.99 and the remaining £27.25 I think must have been paid by eBay U.K.  - will I still be covered by the seller overstated the value option ? Thanks again 

[4_bathrooms]

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@2015.banag wrote:

Thanks I have spoken to the seller and on they’re invoice it says I paid £136.24 and they have no mention of the discount, it was an EBay U.K. Black Friday discount so I paid £108.99 and the remaining £27.25 I think must have been paid by eBay U.K.  - will I still be covered by the seller overstated the value option ? Thanks again 

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If eBay have charged and remitted the VAT you should have an invoice from eBay. What value was stated on the CN22 and do you have a VAT receipt/invoice from eBay (not the seller) showing eBay's VAT number? The seller was probably unaware you used an eBay-funded discount code so I don't believe they have done anything wrong.

This is the form you will need to use if the item was delivered to you by Royal Mail or Parcelforce but you will need evidence you have overpaid such as an invoice from eBay showing the VAT they charged and remitted.

The original amount - £136.24 - would not have included a VAT element due to being over £135.00. If eBay haven't applied VAT to the discounted amount then VAT was indeed due on import. I have a feeling it will be HMRC's opinion that the value of the item was still £136.24; the fact that eBay paid part of the total is likely irrelevant.

[2015.banag]

Thanks I can’t see any mention of VAT on my invoice from eBay, sounds like my Black Friday 20% discount is going to be a 20% increase instead 👎 I should have asked the seller if they could knock £1.24 off the price before I bought it but I assumed the eBay Black Friday sale was making my purchase less than £135 but sounds like they was just paying the last 20% themselves keeping my purchase at £136.24 

[4_bathrooms]

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@2015.banag wrote:

Thanks I can’t see any mention of VAT on my invoice from eBay, sounds like my Black Friday 20% discount is going to be a 20% increase instead 👎 I should have asked the seller if they could knock £1.24 off the price before I bought it but I assumed the eBay Black Friday sale was making my purchase less than £135 but sounds like they was just paying the last 20% themselves keeping my purchase at £136.24 

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It sounds like that's exactly what happened (ouch). Note this isn't the seller's fault as these eBay-funded discounts means eBay simply pays the shortfall. Sellers don't opt-in to these offers and are often unaware a discount code has been used unless they study the sales record.

[sml192]

Apologies, I missed the fact that it was a discount provided by ebay.  That means that the seller still received the full amount, part funded by you and part funded by eBay.  As a result eBay won't have collected Supply VAT at checkout and Import VAT and Duty is, therefore, due on delivery.

You have still received a discount, just perhaps not quite as much as you thought.  If the seller had of reduced the price to £135 then eBay would have added Supply VAT to that amount so you need to factor that in. 

[tommystrezures]

To add to the above and you don’t mention op but postage is included in the calculations was the price of postage included in the 108.99 or was this extra this may have taken you over the £135 threshold?

[4_bathrooms]

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@tommystrezures wrote:

To add to the above and you don’t mention op but postage is included in the calculations was the price of postage included in the 108.99 or was this extra this may have taken you over the £135 threshold?

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It was already over the £135 threshold.

The OP had a 20% "discount" code from eBay that was really a code that split the purchase price 80/20 between the buyer and eBay. The amount paid to the seller (and therefore the value) was still £136.24. This meant import VAT, customs duty and the carrier's handling charge was levied on top and charged by the domestic carrier.

[sml192]

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@tommystrezures wrote:

To add to the above and you don’t mention op but postage is included in the calculations was the price of postage included in the 108.99 or was this extra this may have taken you over the £135 threshold?

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Postage is not included when determining whether a sale is subject to UK Supply VAT unless it is already included in the item price. 

[papso22]

It's not 'supply vat' if it's under £135, it's still import vat, just handled differently. 

[sml192]

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@papso22 wrote:

It's not 'supply vat' if it's under £135, it's still import vat, just handled differently. 

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No, it is Supply VAT because the marketplace is deemed to be making the supply to the consumer and the sale is, therefore, deemed to have taken place in the UK.  To all intents of purposes the marketplace becomes the importer instead of the buyer. 

[4_bathrooms]

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@papso22 wrote:

It's not 'supply vat' if it's under £135, it's still import vat, just handled differently. 

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It is actually supply VAT as eBay (UK) are the deemed supplier for VAT purposes where Great Britain is concerned. If the item is outside the UK and the EU import VAT is only charged if the buyer is located in Northern Ireland.

This was done to nudge UK-established but overseas operated fulfilment houses into compliance. Although a fulfilment house wasn't involved in the OP's sale if one had been the fulfilment house would have made a zero-rated supply to eBay - who would have been responsible for charging and remitting the supply VAT - leaving the fulfilment house to reclaim the import VAT they would have been responsible for paying when they imported the goods.

[papso22]

I stand corrected!  

[2015.banag]

Yes postage was included in the price of £108.99, it was originally £136.24 with shipping included, I did buy a different item from Japan 2 months ago for £125 including shipping on eBay and that arrived without any extra charges so I think if I had asked the seller to reduce the price by £1.24 to £135 that would have saved me this £41.51 import charge 👎 lesson learnt, eBay 20% discount codes are not discount codes reducing the cost of the item but it’s them paying 20% towards the item and I have to treat it as full price for import value, thanks for info everyone 

[2015.banag]

Follow up - Import charges removed 👍

I had previously spoke to my courier, they told me it’s unlikely they can remove my charges but they told me to email them with proof that I only paid £108.99,  I sent them my eBay receipt and my bank statement which they sent to UK customs aviation and today they released it from all customs + handling charges and delivered it today free of charge 👍 

[4_bathrooms]

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@2015.banag wrote:

Follow up - Import charges removed 👍

I had previously spoke to my courier, they told me it’s unlikely they can remove my charges but they told me to email them with proof that I only paid £108.99,  I sent them my eBay receipt and my bank statement which they sent to UK customs aviation and today they released it from all customs + handling charges and delivered it today free of charge 👍 

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I'm genuinely surprised they released all charges without being shown a VAT invoice/receipt but well done.

Which courier was it? I know DHL will pay the customs charges upfront to get the item released by customs then bill the recipient for them. Given the item was delivered so quickly after they waived the charges and handling fee I'm curious which courier it was (if it wasn't DHL).

[tommystrezures]

FedEx do similar to dhl, and invoice you.

[2015.banag]

Yes it was DHL, they emailed to say it has been released this morning and then delivered this afternoon with no bill 

[papso22]

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@2015.banag wrote:

Follow up - Import charges removed 👍

I had previously spoke to my courier, they told me it’s unlikely they can remove my charges but they told me to email them with proof that I only paid £108.99,  I sent them my eBay receipt and my bank statement which they sent to UK customs aviation and today they released it from all customs + handling charges and delivered it today free of charge 👍 

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So just to be clear, your £108.99 already included VAT?