Ups Charges!

[Scarlett]

My friend received a parcel from America which was worth £237.67.
UPS charged him £63.47 to receive it. The breakdown was £57.37 for import VAT, and £6.10 for brokerage charges. If VAT is 20%, how come he was charged so much?

[Buenchico]

VAT is charged on the carriage cost, as well as on the value of the item. So, if the cost of carriage was around $60, that would make sense.

[Peter Pedant]

chrissakes this isnt a delivery charge
it is a VAT and goes to the gubmint.

The T is for Tax

[Scarlett]

Yes but it’s not 20%?

[Redhelen72]

What was he importing as there could be duty owed which also attracts VAT

[barry1010]

Vat is £47.54 of the purchase price but the postage costs also incurs VAT.
How much was the postage?

[Redhelen72]

You pay VAT when you buy the goods or to the delivery company before you receive them. If you have to pay VAT to the delivery company, it’s charged on the total package value, including:

the value of the goods
postage, packaging and insurance
any duty you owe
VAT is charged at the VAT rate that applies to your goods.

[Buenchico]

^^^ It's 20% of £286.85. So, if the carriage cost was the equivalent of £49.18, the sums make sense.

[calmck]

UPS probably had to clear customs and pay import duty

[Scarlett]

The £237 was including the postage. So that was the cost of the items bought (board games from Kickstarter) plus £69 postage, totaling £237. So I would have thought that the VAT payable was £47, not £57?

[Redhelen72]

There are customs duties, due, and postage and then finally vat on the whole amount

[Scarlett]

How is the import VAT calculated?

[Redhelen72]

Look like you have been charged approximately 5% import duties.
Goods + import duties + postage cost + VAT

[Scarlett]

I’m just wondering why this didn’t show on the invoice that they sent?

[bednobs]

cause they didnt have to pay it, therefore they cant invoice him for it