Customs VAT rant Post Reply

[shaneleone]

Just want to get something off my chest really - every single time a family member posts a gift to us from the States, we have been charged a ridiculous amount by customs to receive it. My family now follows all the rules, and yet we are still charged a ludicrous fee. Just this week, my sister-in-law posted a gift to my baby daughter, directly sent from her to us, and valued correctly at $25 USD. A gift sent between private individuals below £36 should not attract VAT. Yet we were charged £8 + £13.50 = £21.50 to receive it. So we've had to pay almost 50% VAT and almost 130% of the value of the gift to receive it.

It just seems that customs charge whatever they want, using exchange rates that don't resemble anything I see online, and get away with it. I've submitted a form, but they want a receipt and written confirmation from the sender with details of the gift, it's value and the recipient, which just feels too rude to ask for. But I am so tired to this happening as we get charged like this every time, even though I feel we are following the rules exactly.

OK_ rant over.

[dollymum]

Hi ! After 22 years of sending packages back and forth to the USA I totally sympathise with your frustration. Sadly the only way to avoid those hideous duties is to mark all items as a 'gift' and declare value at under a tenner. It means of course there is a risk if somthing is damaged or lost as then the value of the item cannot be claimed, but if you net out the costs you will definitely come out ahead in the long run. We've never had an issue posting this way but of course I can't speak for everyone! Good luck (and apologies for type-o's am on phone!)

[shaneleone]

THanks for the tip. We've always marked items as a gift, but it clearly says that items sent as gifts under £36 won't attract VAT, yet this last item was valued (correctly) at $25 USD, yet was charged £8 VAT and then £13.50 handling. From now on, I'll have it marked under a tenner - although more likely I'll just people stop posting gifts completely!

[dollymum]

Oh ugh. Nightmare isn't it ? I think of the money spent in Duty and VAT on posting gifts over the years and we probably could have had a holiday home for that money !!! Good luck in any case !!

[SydneyMummy]

I'm sure you've done this already but have you logged a complaint in writing detailing the various costs and therefore discrepancies with what is their supposed policy?

I have encouraged my family and friends to buy gift cards or e-vouchers so this situation can be avoided. It's not as personal but it's less stressful and less time-consuming and certainly cheaper for all concerned.

It also saves on what can be horrendously extortionate postage costs and not just on the customs costs. If DVDs are the desired gift then it also saves on all the issues of different regions and the fact that many DVDs can't be watched in other regions without having a multi-region DVD player.

I send photos of the purchased item/s being played with, worn, etc. so that the giver can see the child's delight and hopefully they get to glean pleasure for their gift-giving.

[atbattersea]

It is likely that you are being charged an admin fee, as well at the VAT/customs duty, that is why it seems to be so much compared to the value of the item. I have seen this when receiving Royal Mail items, typically a flat fee (I can't remember exactly, but somewhere around £5.00).

One way to avoid this, and reduce the postal costs, is to direct your friends to buy gifts in UK (or EU) based online shops.

[shaneleone]

For the most part I have asked all my friends and family to stop shipping gifts, and to bring things when they come or order from the UK. However, every so often someone wants to buy something that they can only get in the US or just decided they want to surprise us. And then we get stuck paying above and beyond the cost of the gift.

I did submit a form in writing, as this last package should never have been charged, but they wanted a receipt or proof of the value (for a gift?!?) and they wanted written evidence from the sender about the gift, value and recipient - I didn't feel it was polite to ask for either, so I am doubtful that we will get any kind of refund.

And yes, for a gift worth $25 USD, there was an £8 VAT fee + £13.50 handling fee = £21.50.

So now I'll have to remind all my friends and family again to not post gifts overseas, but I just feel bad doing so, as someone was just trying to be nice and send a gift!

[SydneyMummy]

I totally understand and empathise; it's such a shame.

[geoffp]

I get quite a few motorcycle parts mailed over from the US. My moto colleagues over there always use USPS not UPS or FedEx etc. These latter guys are notorious for charging exorbitant fees for clearing customs, with commensurate delays. USPS is quick, cheap and easy.

So if you're not using USPS, do

Cheers

[shaneleone]

Just to follow up - after sending off a complaint, I have just received a letter saying that after re-consideration, I should never have been charged VAT. So they are sending the £8 refund in 30 working days as a payable order, BUT I am not entitled to a refund on the £13.50 handling fee.

Just confirmation in my opinion that they're crooks - they charge whatever they like knowing most people won't bother to ask for a refund, and then the ParcelForce makes off with the handling fee regardless. How they came up with £8 VAT for an item worth $25 USD (about £17) is beyond me as well….

[SydneyMummy]

Crooks and liars!!!

Well done for writing to them and getting the £8 back. As you say, it's a bizarre amount.

Why not write to the Wandsworth Guardian or other papers and let them know what's going on? Perhaps it will pique their interest and eventually get a story out of it, which in turn may ruffle enough feathers that HMRC will review their absurd charges??? Let the local MP know too. It's seems crazy that this goes on unchallenged.