Courier company and duty charges

jos28

I have to take delivery from DHL tomorrow of an item that was sent to the US for repairs. The item was bought here several years ago and the it needed specialist repairs (carbon fibre bike frame).

We no longer have the receipt but we can prove that the assembled bike with that frame was here and we have proof of sending it to the US along with their invoices for repairs. Will there be anything due to revenue ??

Wedgie

jos28 wrote: »

I have to take delivery from DHL tomorrow of an item that was sent to the US for repairs. The item was bought here several years ago and the it needed specialist repairs (carbon fibre bike frame).

We no longer have the receipt but we can prove that the assembled bike with that frame was here and we have proof of sending it to the US along with their invoices for repairs. Will there be anything due to revenue ??

It's been a while since I was involved in the shipping industry, but you had to Customs Duty and VAT on the cost of repairs plus shipping the item back to you. Of course, you have to prove that you sent it over in the first place.

jos28

Thanks for that Wedgie - so it's the cost of repairs and not the value of the item. That makes sense, cheers

dev100

I have to send items to the US for service and repair for my job . I'm not 100% but I think it's on the value of the item. Did you declare value on it when you shipped it out ?

jos28

Thanks folks, the frame arrived back and NO charges !!
Happy Days, we had to submit proof of ownership and outbound shipping so we presumed there would be charges to pay on the repair which was over $1000.
Thankfully there was no bill to pay

jos28

Well that was too good to be true
A bill arrived from Fedex for €260 today. They calculated the VAT at 13.5% of the total bill ($1500). The repair was $1000 and freight $500. Can they charge VAT on the freight ? Anyone know who to contact to query the charges if necessary ?

dev100

jos28 wrote:

Well that was too good to be true A bill arrived from Fedex for €260 today. They calculated the VAT at 13.5% of the total bill ($1500). The repair was $1000 and freight $500. Can they charge VAT on the freight ? Anyone know who to contact to query the charges if necessary ?

Ay lovely VAT gets charged on everything unfortunately. Duties even charged on delivery costs Don't quote me on this I remember in my old job getting some tools from the states years ago thru UPs and they forgot to charge me the duties etc. Usual driver was off at the time . When he got back he told me other driver should have charged me but because I had signed off on parcel and he hadn't charged there and then , he then couldn't legally require me to pay it afterwards ...but whether it's true or not is another thing !!!!

my3cents

Yeah VAT is chargeable on the cost of shipping, its annoying but thats the way it is.

JimsAlterEgo

my3cents wrote: »

Yeah VAT is chargeable on the cost of shipping, its annoying but thats the way it is.

its to stop sellers listing something as low cost with high shipping to avoid tax and duty e.g. (5 with 25 shipping)

whiterebel

jos28 wrote: »

Well that was too good to be true
A bill arrived from Fedex for €260 today. They calculated the VAT at 13.5% of the total bill ($1500). The repair was $1000 and freight $500. Can they charge VAT on the freight ? Anyone know who to contact to query the charges if necessary ?

It might be worth ringing Customs directly and asking about paying Vat/Duty charges on a repair. Seems a bit harsh, particularly if done under warranty.

ytpe2r5bxkn0c1

whiterebel wrote: »

It might be worth ringing Customs directly and asking about paying Vat/Duty charges on a repair. Seems a bit harsh, particularly if done under warranty.

VAT and Duty are wholly appropriate. It was a charged repair lf $1000 not a warranty claim.

jos28

Thanks for all the input folks. I'll give Revenue a call and see if the might reduce the charge as it does seem a bit harsh. There is no one in Ireland capable of the repairs and VAT was paid on the original purchase of €3000. It's worth a try, other than that I think I'll wait until the reminder comes from Fedex (thanks dev )

my3cents

jos28 wrote: »

Thanks for all the input folks. I'll give Revenue a call and see if the might reduce the charge as it does seem a bit harsh. There is no one in Ireland capable of the repairs and VAT was paid on the original purchase of €3000. It's worth a try, other than that I think I'll wait until the reminder comes from Fedex (thanks dev )

The only way you might get any joy is if you can persude revenue that the wrong rate has been applied. I don't know if you can swing it but you are paying for a service not materials so afaik you should be paying the lower rate on the repair, no idea how that affects the carriage charge which I think is still the full rate. Also being that service was supplied outside the state may have some bearing on the VAT rate applied. All you can do is ask.

EDIT> MY BAD sorry I missed that you had already been charged the lower rate so ignore that

rubadub

jos28 wrote: »

A bill arrived from Fedex for €260 today. They calculated the VAT at 13.5% of the total bill ($1500). The repair was $1000 and freight $500.

I would have expected 13.5% on the 1000, and 23% on the 500. This is why it really pays to get the cheapest shipping possible, you can save a fortune for a few days wait.

Do you have the full break down of prices? I would expect an administration fee of maybe €18, was there duty?

I would not expect 13.5% on the shipping so be careful you do not end up complaining and paying more!