Breakdown of VAT/ Customs ?

Muahahaha

I bought $54 worth of goods from the US. Just had UPS drop off an invoice for €26 tax to be paid. They are taking the exchange rate at 1.39 which is about right. The invoice says:-

VAT 9.04
Other Charges 14.50

Total Charges 23.54
Vat 3.34

Total Amount Due 26.88

Needless to say I'm pretty miffed at having to pay nearly €27 tax on a €39 shipment. I was resigned to maybe paying €12-15 but not just under €27

Can anyone tell me what is 'Other charges' ? Is this a UPS handling fee for collecting the customs ? If so it is pretty outrageous given that An Post charge something like €7.50 or so ?

Also I noticed that there is VAT charged twice, once on the actual shipment and then again on the entire amount. So they have charged VAT on the VAT - surely this is double taxation and breaking some rule, how can they charge you tax on a tax ?

viv2

I ferl your pain. I just got a letter from fed ex looking for €41 on a parcel valued at $139 this includes the postage cost to fedex of $45 which was really high. Again like you am being charged vat on the vat which is ridiculous imo. The other charges you are being charged are the fee that they take for collecting the vat.

recipio

I sent a similar bill to Fex Ex in Dublin asking for more details. They forwarded on to their UK address who sent a breakdown of charges with all kinds of technical jargon. I'd imagine UPS would do the same.
For imports from the US I always use USPS ( the Post Office - not a courier ) and items will often get through without charges.
So much for global trade. If we lived in Australia we could import $1000 worth of goods without any customs charges.

Beano

Muahahaha wrote: »

I bought $54 worth of goods from the US. Just had UPS drop off an invoice for €26 tax to be paid. They are taking the exchange rate at 1.39 which is about right. The invoice says:-

VAT 9.04
Other Charges 14.50

Total Charges 23.54
Vat 3.34

Total Amount Due 26.88

Needless to say I'm pretty miffed at having to pay nearly €27 tax on a €39 shipment. I was resigned to maybe paying €12-15 but not just under €27

Can anyone tell me what is 'Other charges' ? Is this a UPS handling fee for collecting the customs ? If so it is pretty outrageous given that An Post charge something like €7.50 or so ?

Also I noticed that there is VAT charged twice, once on the actual shipment and then again on the entire amount. So they have charged VAT on the VAT - surely this is double taxation and breaking some rule, how can they charge you tax on a tax ?

The 14.50 sounds right for the ups processing fee. And they are obliged to charge vat on the fee they impose.

Bear in mind that vat and customs duty are charged on the total cost of items i.e the purchase price + shipping costs.

Muahahaha

Beano wrote: »

The 14.50 sounds right for the ups processing fee. And they are obliged to charge vat on the fee they impose.

Bear in mind that vat and customs duty are charged on the total cost of items i.e the purchase price + shipping costs.

Yeah I know they charge Vat on the shipping as well as the item. But what I don't get is them charging vat on the item, adding that to the service charge for processing it and then charge Vat again on the entire amount including the €9 I that was already Vat. It seems to me like they are charging vat on vat, I'll be querying it with them tomorrow and if I don't get a satisfactory answer I'll flick an email to customs to get their version of events. I've certainly never heard of being charged vat on vat before, it seems bizarre to me and a total piss take.

Muahahaha

recipio wrote: »

I sent a similar bill to Fex Ex in Dublin asking for more details. They forwarded on to their UK address who sent a breakdown of charges with all kinds of technical jargon. I'd imagine UPS would do the same.
For imports from the US I always use USPS ( the Post Office - not a courier ) and items will often get through without charges.
So much for global trade. If we lived in Australia we could import $1000 worth of goods without any customs charges.

I asked the UPS guy how they do it and he said they haven't a clue. Some days customs don't bother at all while other ones they go on a blitz. He said it's really bizarre but what pisses off most people is the handling fee, you've already paid for the item to be delivered to you door and now they are charging you €14.50 to pass €9 worth of tax onto revenue, it's a joke, I won't be buying from a seller who uses UPS again.

rubadub

Muahahaha wrote: »

VAT 9.04
Other Charges 14.50

Total Charges 23.54
Vat 3.34

Total Amount Due 26.88

It doesn't look like vat on vat to me. Seems 9.04 is the VAT on your item, 14.50 is your handling charge. This totals 23.54.

The additional 3.34 vat is 23% of 14.50, so only added vat on your handling charge, it is not 23% of 23.54.

I think the legal limit for handling charges is €15, but I did think that included VAT, maybe not.

I would request if sellers use USPS, and why you are not using them if they look to use couriers. It seems the couriers want to get their high handling fees, so will go out of their way to make sure to catch every single person liable. This is why I think its more likely for standard post office stuff to slip through.

SnowDrifts

I always contest these "handling charges". Just to be clear - I am not talking about VAT and duty charges - you are legally obliged to pay both. You are, however, not legally obliged to pay the "handling fee" as no contract for such exists between you and the shipping company. A brief email highlighting this fact always results in a refund for me.

Muahahaha

SnowDrifts wrote: »

I always contest these "handling charges". Just to be clear - I am not talking about VAT and duty charges - you are legally obliged to pay both. You are, however, not legally obliged to pay the "handling fee" as no contract for such exists between you and the shipping company. A brief email highlighting this fact always results in a refund for me.

Wish I had of read this before I paid the full whack:( oh well, I'll know to try contest it next time, if there ever is one, €27 on a €39 shipment is a bit hard to stomach. No doubt others have got shafted even worse than I did too.

skelligs

SnowDrifts wrote: »

I always contest these "handling charges". Just to be clear - I am not talking about VAT and duty charges - you are legally obliged to pay both. You are, however, not legally obliged to pay the "handling fee" as no contract for such exists between you and the shipping company. A brief email highlighting this fact always results in a refund for me.

then you have to do your own customs declaration which can take many hours.

or pay the handling fee and allow for the UPS automated system do all the work.

SnowDrifts

skelligs wrote: »

then you have to do your own customs declaration which can take many hours.

or pay the handling fee and allow for the UPS automated system do all the work.

This is just not true so not sure where you are getting that from. It's simply as follows...

I receive bill for duty, vat and "handling charges".

I send an email contesting "handling charges".

I receive refund for "handling charges".

I have done this many times with the same result every time.

Solo89

SnowDrifts wrote: »

This is just not true so not sure where you are getting that from. It's simply as follows...

I receive bill for duty, vat and "handling charges".

I send an email contesting "handling charges".

I receive refund for "handling charges".

I have done this many times with the same result every time.

Hi Dnow Drifts - have you contested this of late and does it still work? Have received one myself and not happy paying it. havent contested yet.

They have also done a couple of other things wrong - 1. no customs where value is less than 150e. Value of mine declared is 152usd so under threshhold. 2. they have charged vat pn the usd amount and then charged this in euro.

These were suits shipped from hoi an vietnam and needless to say i am just back after a few months and not happy about a bill from fedex/customs!. is anyone amy wiser about how some items get caught by customs and some dont ? Seems luck of the draw

nava

@Solo89 thread is over 2 years old, please do not bump old threads.