TNT VAT charges
Discussion
I had an item delivered from China last week. I paid for an express service and, sure enough, a friendly TNT man delivered it a week later.
I have subsequently received an invoice for the VAT due (fair enough, although I’m confused by their calculation) and a whopping £24 charge for their Deferment Processing Fee.
The VAT has been calculated as follows:
Freight charges: £32.50
VAT value adjustment: £6.25
Invoice total: USD 20.00 @ exchange rate 1.2327 = £16.22
Total: £54.97
VAT: £10.99
Any idea what the “VAT value adjustment” is all about? Google doesn’t give an answer that my little brain understands. Whatever it might be, if owe £10.99 for VAT, I have no complaint, obviously.
The £20+VAT for TNT’s fee is hard to swallow, though. My understanding is that Royal Mail charge £8 for such a service and at no point did anyone point out to me that I’d be liable for such a lump.
Any thoughts would be much appreciated.
I have subsequently received an invoice for the VAT due (fair enough, although I’m confused by their calculation) and a whopping £24 charge for their Deferment Processing Fee.
The VAT has been calculated as follows:
Freight charges: £32.50
VAT value adjustment: £6.25
Invoice total: USD 20.00 @ exchange rate 1.2327 = £16.22
Total: £54.97
VAT: £10.99
Any idea what the “VAT value adjustment” is all about? Google doesn’t give an answer that my little brain understands. Whatever it might be, if owe £10.99 for VAT, I have no complaint, obviously.
The £20+VAT for TNT’s fee is hard to swallow, though. My understanding is that Royal Mail charge £8 for such a service and at no point did anyone point out to me that I’d be liable for such a lump.
Any thoughts would be much appreciated.
The goods themselves will have been subject to EU import Duty. VAT is then charged on the total of price of the goods + the import duty + shipping cost to the EU.
If goods have travelled part of the way within the EU (e.g. arrived Rotterdam and trucked to UK) then that part of the shipping cost does not attract Duty - only VAT - and the VAT is charged on intra EU transportation cost of the entire container, or whatever. TNT then allocate that overall VAT across each individual item in the container on a averaged basis (for instance, charged according to weight). This is known as VAT value adjustment.
If goods have travelled part of the way within the EU (e.g. arrived Rotterdam and trucked to UK) then that part of the shipping cost does not attract Duty - only VAT - and the VAT is charged on intra EU transportation cost of the entire container, or whatever. TNT then allocate that overall VAT across each individual item in the container on a averaged basis (for instance, charged according to weight). This is known as VAT value adjustment.
rockin said:
The goods themselves will have been subject to EU import Duty. VAT is then charged on the total of price of the goods + the import duty + shipping cost to the EU.
If goods have travelled part of the way within the EU (e.g. arrived Rotterdam and trucked to UK) then that part of the shipping cost does not attract Duty - only VAT - and the VAT is charged on intra EU transportation cost of the entire container, or whatever. TNT then allocate that overall VAT across each individual item in the container on a averaged basis (for instance, charged according to weight). This is known as VAT value adjustment.
Thanks.If goods have travelled part of the way within the EU (e.g. arrived Rotterdam and trucked to UK) then that part of the shipping cost does not attract Duty - only VAT - and the VAT is charged on intra EU transportation cost of the entire container, or whatever. TNT then allocate that overall VAT across each individual item in the container on a averaged basis (for instance, charged according to weight). This is known as VAT value adjustment.
The item arrived on a flight into East Midlands Airport.
Does that mean that the £6.25 is simply VAT charged on the shipping cost (£32.50 x 20% = £6.50) adjusted downwards by 25p because a portion of the journey to my front door was within the EU, i.e. from East Midlands Airport to chez moi?
Gassing Station | Finance | Top of Page | What's New | My Stuff