Fedex - Final Demand - Vat collection issue

n0brain3r

Hi all,

I've received a final demand (I never received an initial demand)from FedEx for €25.66 relating to something the OH bought from EBAY back in June from the states.

I know I have to pay VAT on goods imported from outside the EU but to be honest I didn't really think about it and the stuff was delivered last month without issue.

The goods cost €30 and shipping was €27.36. I thought I'd only pay VAT on the €30 but FedEx say it's on both and come up with a charge of €13.56(Doesn't work out to be 21% and can't explain how they came up with it) then they slap an admin charge of €10 on it and then charge another 21% VAT on the admin fee to give me a bill of €25.66.

I've numerous problems with this

They're charging me an admin fee that I never agreed to?

They're charging me 21% VAT on the admin fee is this right(I'd of thought it was 13.5%) they say the goods came in via the UK so it's the applicable VAT rate.

I contacted them and they were less than helpful basically they say the seller should of made me aware of this when I made the transaction and that if my account wasn't settled in full they'd hold onto any further shipments to myself via FedEx until the account was settled.

I also called consumer affairs and they said it was a mess as it involved the US the UK and the Revenue. Consumer Affairs suggested I called the revenue to resolve so I called revenue and the just said to pay FedEx.

I've no problem paying the VAT but am told that FedEx have paid it on my behalf so I must settle up with them now I kinda feel like I'm being held to ransom now with future deliveries.

Anyone have advice on what I can/should do? Just pay up? Am I just being a tight git? It does feel like I'm being ass raped though!!

Paulw

n0brain3r wrote: »

Anyone have advice on what I can/should do? Just pay up?

You should pay up.

Yes, the sender should have made you away of possible additional charges (most actually do have a line in the small print which mentions VAT).

You are liable for the VAT on the item plus delivery cost. You are also liable for the admin fee too.

I know it sucks, but that's the way it is.

Nody

n0brain3r wrote: »

Hi all,

I've received a final demand (I never received an initial demand)from FedEx for €25.66 relating to something the OH bought from EBAY back in June from the states.

I know I have to pay VAT on goods imported from outside the EU but to be honest I didn't really think about it and the stuff was delivered last month without issue.

The goods cost €30 and shipping was €27.36. I thought I'd only pay VAT on the €30 but FedEx say it's on both and come up with a charge of €13.56(Doesn't work out to be 21% and can't explain how they came up with it) then they slap an admin charge of €10 on it and then charge another 21% VAT on the admin fee to give me a bill of €25.66.

I've numerous problems with this

They're charging me an admin fee that I never agreed to?

It was agreed by the fact of choice of courier and the law specifically allows it. All big couriers will do it if you do not specify differently (and have the documents to back up that you already have submitted the tax declaration to the Revenue).

They're charging me 21% VAT on the admin fee is this right(I'd of thought it was 13.5%) they say the goods came in via the UK so it's the applicable VAT rate.

Becomes a question of VAT at point of entry or at end delivery point, can't recall the law on that one.

I contacted them and they were less than helpful basically they say the seller should of made me aware of this when I made the transaction and that if my account wasn't settled in full they'd hold onto any further shipments to myself via FedEx until the account was settled.

I also called consumer affairs and they said it was a mess as it involved the US the UK and the Revenue. Consumer Affairs suggested I called the revenue to resolve so I called revenue and the just said to pay FedEx.

Yes because Revenue is paid already by Fedex.

I've no problem paying the VAT but am told that FedEx have paid it on my behalf so I must settle up with them now I kinda feel like I'm being held to ransom now with future deliveries.

They have settled it on your behalf and hence they are out on cash, how that is ransom can be discussed at length...

Anyone have advice on what I can/should do? Just pay up? Am I just being a tight git? It does feel like I'm being ass raped though!!

Pay up, you owe them money, they have the right to collect the admin fee.

pleasant Co.

n0brain3r wrote: »

They're charging me an admin fee that I never agreed to?

Unfortunately you took delivery of the item, by doing so you agreed to pay their fees and the gov's fees. If you had refused the to take the item then you wouldn't have to pay anything extra.

Accepting delivery = agreeing to pay the additional VAT and admin fee.

Not sure about the US/UK/IRL bit, I've seen it posted here before but the poster's never seem to post back with a resolution.


Maybe you can take them to the small claims court as you will not be able to settle with them and they will hold you to ransom, although all you can hope for from the SCC is to pay the irish VAT rate rather than the UK one, and any potentially savings from that will be lost on the cost of the SCC and your own time.

dudara

Best suited to Online Buying & Auctions

dudara

n0brain3r

Thanks for the replys I'm just trying to figure out how I became liable for an admin fee if just accepting delivery is enough you'd think they'd state it then. I've paid at he door before but a month later and the admin fee is new to me.

Nody can you quote the law that covers that claim?

Formosa

n0brain3r wrote: »

Thanks for the replys I'm just trying to figure out how I became liable for an admin fee if just accepting delivery is enough you'd think they'd state it then. I've paid at he door before but a month later and the admin fee is new to me.

Nody can you quote the law that covers that claim?

I'm with you on this, I got a bill from them for VAT recently which included €12.10 admin fee.

I paid them the VAT but not the admin fee and received a nasty threatening letter yesterday. As far as I'm concerned they are collecting the taxes on behalf of revenue and should charge them, not me an admin fee. The sender has already paid them (which means I have as I paid him for postage) to provide the service of delivering to me.

I didn't ask them to collect tax and I really fail to see what service they provided me to make me liable for €10 plus VAT.

I rang their 1800 535800 number yesterday which gets through to an English center. The phrase "thick as pigsh1t" was coined for the girl I spoke to..."yes, you owe twelve pounds and ten euro" and she told me that the admin fee was for customs and not for them.

I won't even call it a lie as she was too dumb to have a clue about what was going on.

Gamesnash.ie: Pat

AFAIK the law states that anyone importing goods etc from outside of the EU is liable to pay VAT / Customs Duties as appropriate PLUS an admin fee (which I think is set at a max of €16.00) to any officialy authorised agent of the revenue collecting the tax. By importing in the first place you became liable to pay a fee up to €16.00 on top of any VAT / Customs Duties charges. Fed Ex are one of the dearer carriers for this admin fee wise - UPS are if memory serves me €2.50 but any agent be it FEd EX, An Post, UPS etc can charge up to the maximum admin fee and the importer is liable for it.

jor el

n0brain3r wrote: »

Thanks for the replys I'm just trying to figure out how I became liable for an admin fee if just accepting delivery is enough you'd think they'd state it then. I've paid at he door before but a month later and the admin fee is new to me.

An admin fee is always applied, not just because you are being billed later. There's nothing you can do about this, so you may just pay it.

91011

The admin fee covers the cost of import processing, declaration to customs & paperwork.

Unfortuantely the same import paperwork is needed on a €30 item as on a €50,000 item.

If the item was valued at €50,000 the admin fee is still the same.

UPS charge €13, An Post charges €6

Its applied on all shipments from outside the EU.

Your vat charge is applied to the landed cost of the goods (cost + shipping). Vat @ 21% is applied to the import service too.

Unfortunate, but retailers have to pay it too and it works the same way in reverse for people in the uSA.

n0brain3r

I suppose they got my back up sending a final demand as first contact and then the admin fee seemed so out of place considering the cost of the goods in the first place.

With regards to the admin fee you learn something new everyday! I'd of thought you'd have to be given the choice either have your goods sit waiting to clear customs or pay us the €10 to do it for you

I got a result though it wasn't purchased from eBay as I thought but on an online store I went through the process of ordering the same goods again and they didn't mention anything about an admin fee just VAT and Duty. So I popped them a mail this morning and they credited my PayPal with $16 saying they never knew FedEx levied their overseas customers in this way and I got a 10% discount on the next purchase

MS.MONEYPENNY

n0brain3r wrote: »

I went through the process of ordering the same goods again and they didn't mention anything about an admin fee just VAT and Duty. So I popped them a mail this morning and they credited my PayPal with $16 saying they never knew FedEx levied their overseas customers in this way and I got a 10% discount on the next purchase

Happy to hear this as the same thing happened to my friend. She too bought a small item online and it was shipped from the States. Paid Vat,Duty and P&P. She received a bill from the same courier company this week for around E30, I will pass on to her what you have done and hopefully hers will be a happy out come too! Thanks