Gift from Europe - import duty

[Notreallymeeither]

Hi all

I was sent a lovely gift of a 2nd hand watch (Rolex) from a relative in Spain. It genuinely was a gift - I haven’t paid anything for it.

Watch arrived all fine via DHL.

However, I have just received an invoice from DHL for £900 for the VAT on the watch (based on the insurance value the sender stated for the watch).

A couple of questions

- how can I be charged VAT on a gift when I genuinely haven’t paid anything for the goods. My relative certainly didn’t charge Spanish VAT on the watch etc. They bought the watch in the UK circa 30 years ago.

- is there any way around having to pay this invoice from DHL. DHL have sent it as a “fait accompli” and I need to pay within 5 days (they are saying they have already paid HMRC). It isn’t a scam as they have all the corresponding details.

- if not for COVID, the relative would have given the watch to me in person the next time they came to the UK. If they had given it to me in person, should I have to declare the gift for VAT purposes when they gave it to me?

- If not, why then am I getting stung for VAT just because the relative posted it to me rather than giving it to me in person (due to COVID travel restrictions).

- can I send the watch back and not pay the VAT and then just wait to receive it in person when travel opens up?

Is this the new norm following Brexit? Would I have been charged this pre Brexit?

Appreciate this is all very “first world problems”.

Thanks

Edited by Notreallymeeither on Wednesday 30th June 20:27

[Hanslow]

I'm no expert/lawyer but have a read of sections 2.3 and 2.4 on https://www.gov.uk/government/publications/notice-...

I read it as they're right to charge you for it

[Notreallymeeither]

Hanslow said:

I'm no expert/lawyer but have a read of sections 2.3 and 2.4 on https://www.gov.uk/government/publications/notice-...

I read it as they're right to charge you for it

Thank you. I was just reading that section as well. Bugger.

I just don’t understand why if he gave it to me in person the next time he is over here, I doubt anyone would even think “oh I must contact HMRC and pay VAT on this gift”.

I appreciate that it would be an easy way to avoid duty if everyone claimed everything was a gift, but this genuinely is.

Thanks for the response.

[TwigtheWonderkid]

Notreallymeeither said:

Is this the new norm following Brexit? Would I have been charged this pre Brexit?

Yes it is and no, you wouldn't.

Stop moaning, this is the will of the people.

[sherman]

So if the sender had not insured its value with DHL and sent it through the post as a gift of no value you wouldnt have to pay anything, if Im understanding this correctly?

[Notreallymeeither]

TwigtheWonderkid said:

Notreallymeeither said:

Is this the new norm following Brexit? Would I have been charged this pre Brexit?

Yes it is and no, you wouldn't.

Stop moaning, this is the will of the people.

Another thing to thank Farage for. But at least I can get a blue passport.

[Notreallymeeither]

sherman said:

So if the sender had not insured its value with DHL and sent it through the post as a gift of no value you wouldnt have to pay anything, if Im understanding this correctly?

Yes I think that’s right - although I guess the risk is if it goes missing in transit then it’s an expensive risk to take.

[Notreallymeeither]

Now I’m even more confused!

The VAT code shown on the invoice is “Z” and HMRC website says this means “Goods are liable to VAT on importation at the zero rate (0%)”

So if it is zero rated, shouldn’t the invoice be £0?

Edit: if you go through the commodity code checker on the government website it shows VAT rate of 20% - so I suspect DHL has made a mistake on the invoice.

My eyes have been opened this evening!

Edited by Notreallymeeither on Wednesday 30th June 21:05