Disbursements out of the scope of EU VAT Charges by FEDEX.

Lyndylo

I went to visit my family in NZ over the Xmas period and due to excess baggage charges via the airlines, I sent a 25KG box of various bits and pieces - mainly small kitchen items (non electrical) back to Ireland where I live permanently as an Irish citizen. The value of all the items in the box was $275 NZ dollars. I paid a freight charge of Euro€225 to Fedex in NZ before leaving. My box was addressed to my husband here in Ireland and was delivered to him a day before I landed back in Ireland hence I was delighted until I received an invoice from Fedex 2 weeks later asking for an amount of €248. Whilst I thought I may have a small amount of duty to pay I did not expect to receive an invoice for this amount of money. I contacted Fedex who told me to email their disputes team who would look into this. This I did and have yet to receive a reply. Today I have received a pay in 7 days or else letter so am not impressed. On contacting them they told me to contact customs in Dublin which I did and was told this is not their charge but it is a FEDEX charge. I think I am being ripped off by Fedex. The breakdown of their invoice is shown as
Services - Duty €37.01, Vat €199.36, Admin Fee €10.00

Futher down the page

Disbursement out of the scope of EU VAT €236.37
Clearance Admin Charge Vatable at 23% €10.00
Other charges Vatable at 23% 0.00
Other charges vatable at 0% 0.00
VAT at 23% €2.30

Total amount due €248.67

I am awaiting a call from FEDEX but in the mean time does anyone have an answer as to what is this disbursement EU Vat charge of €236.37 charge.

Fedex mentioned charging me VAT on the value of the shipped items including the shipping charges which still does not equate to €236.37.

HELP PLEASE

mdebets

The Disbursement out of the scope of EU VAT is just the VAT for goods you purchased outside the EU.

If your figures above are correct, your VAT should be around €102 (based on 23% of €167 value of goods + €225 transportation) + Admin fee €10 and VAT on Admin €2.3.
The VAT they calculated (based on 23%) would be for a value of €645 value of goods + €225 transportation.
Did you include the invoices for the goods you shipped? If you didn't, customs could just have estimated their value and charged you VAT and customs on that.

Get on to customs and asked them what value they have based their calculation on and see if you have your invoice or can show them other evidence that supports your price calculation of €167 for the goods.

Lyndylo

Thanks for the info. Really appreciate your response. I had a feeling Fedex are trying to over charge me.

Being armed with your info will help me with the phone call I am expecting back from their accounts dept.

This is the first and last time I will use FEDEX as normally I use the Post Office if I have excess baggage and have never been charged excessive charges like Fedex have charged me this time around. I will be spreading the word on facebook warning friends to pass the message on re FEDEX as on reading other peoples displeasure re Fedex charges through google pages seems to be a common complaint.

dudara

Of course people are who charged customs, fees & VAT are never going to be happy. Hence all the bad mouthing you see on the net. No one likes an expensive surprise.

At least give Fedex a chance to explain the charges before you proceed any further.

sandin

Goods were valued at €160, freight was €225

Surely there was a better / cheaper way to ship?

Max vat is €385 @ 23%, approx €90.

Figures must be entered incorrectly somewhere.

cookie1977

well it is fedex. We shipped home 20kg from NZ in 2008 via regular slow economy post with NZ post and it cost us 120NZD (about at the time 65-70euro).

MOH

Are these personal items that you originally owned in NZ and sent on here because you're now living here?

If so, from my reading of this, you might not be liable for duty and VAT on them. There's quite a list of conditions, and not sure if you need to go through the process before bringing the stuff over, but might be worth getting in touch with Revenue about it.

Lyndylo

Thanks for all your comments. No these were bits and pieces I bought while in NZ visiting my family on holiday over the Xmas period.

After speaking with Fedex this morning I now await an invoice with a breakdown of the charges from them. They are to email it to me. Still haven't received it yet but will be very interested in how they arrived at the VAT figure.

I don't quite understand how you can be charged the shipping fee which included GST (TAX) in NZ before sending the box and then be charged VAT (TAX) on the shipping fee again in Ireland.

Will be good to get to the bottom of this.

mdebets

Lyndylo wrote: »

Thanks for all your comments. No these were bits and pieces I bought while in NZ visiting my family on holiday over the Xmas period.

After speaking with Fedex this morning I now await an invoice with a breakdown of the charges from them. They are to email it to me. Still haven't received it yet but will be very interested in how they arrived at the VAT figure.

Did you include the invoices from the stores you bought the item in the package? Otherwise they might have thought that the declared value was too low and they were estimating the value.

Lyndylo wrote: »

I don't quite understand how you can be charged the shipping fee which included GST (TAX) in NZ before sending the box and then be charged VAT (TAX) on the shipping fee again in Ireland.

All goods you buy have their transport included in their price (you just don't see it separately if you buy in a shop) and VAT applied to both. So why should something shipped from outside the EU be different.
You also would have the problem of online shops selling goods for €1 and having a huge shipping cost, just to avoid customs and VAT, if transportation were to be excluded.