I think I am seeing a new scam.
Background
When an item is delivered to UK from overseas, we, as recipient, may have to pay VAT, and occasionally duty, as the importer. It is a legal requirement.
Yes, as a business we have "postponed VAT accounting", and even the possibility of a "Duty Deferment Account", and DHL get some credit here for handling both very well, with no admin fees. UPS do not get any credit for this at all.
But as a consumer there are two ways this goes down.
- They refuse to deliver unless you pay first, or they demand payment on the doorstep. The scam is they want an admin fee that was not pre-agreed with them, and not part of any contract. And you have no choice if you want the parcel. It is a scam as it breaks pretty much all consumer contract protection laws, and is admin that is normal and so should be part of what they charge the sender, IMHO.
- They bill you later, and try and charge the admin fee as well. Usually paying the legally required VAT/Duty and NOT paying the admin fee, can work. They do not like it, but I do not think they have any legally enforceable right to their admin fee. Even so it is time consuming and hassle, and I really need to publish an admin fee I will deduct from such payments and argue that is as valid as theirs.
So yes, un-agreed admin fees to recipient are a scam. That is my view anyway.
Note: Royal Mail have a law allowing them to charge an admin fee, couriers do not. There fact there is a law especially for this - kind of proves it would not be legal without such a law.
A new scam
I am now seeing what I assume is a new scam. This time by UPS. Yes, I believe this is a scam.
This relates to a shipment with Duty/VAT pre-paid by sender. So no charge to recipient. No legally required payment by recipient. Sender PAID to get parcel to recipient duty/VAT pre-paid.
In this case a parcel ordered on Amazon UK (no clue non UK shipper). And Amazon do generally handle everything pre-paid Duty/VAT. They are actually really good at that, and for shipments to EU are "deemed supplier" and handle local VAT and all sorts. Very neat.
But UPS decided to send an invoice (after delivery) for £6.65+VAT (£7.98) for an "entry prep fee".
It is not a lot, but I bet a lot of people pay, and UPS must handle millions of parcels. This is a big scam, and needs to be reported.
I think this is time to report this fraud to the police.
The importer has a legal duty to settle the VAT/Duty with HMRC, and no legal duty to the courier.
ReplyDeleteWhat happens is that the courier chooses to do this on behalf of the importer via their (the courier's) duty deferment account and then reinvoice the importer. HMRC have then been paid.
No contract exists between the courier and the recipient, and so recovery of any of it from the recipient is legally shaky.
If I decide to pay your council tax, without you asking me to, then send you an invoice asking you to pay me that amount plus an admin fee, I'm on shaky ground even trying to get you to pay the council tax let alone the admin fee. Saying "but you're required to pay your council tax!" isn't actually much of an argument - it is already paid, by me!
If you're a vat registered business, then PVA or DDA (if you have one) are legitimate ways for you to deal with the VAT and Duty direct with HMRC. You've made arrangements to pay it already, and if they have chosen to pay your taxes and duty for you, well, that is up to them.
An admin fee or "entry prep fee" sounds like their "cost of doing business" to me, and not recoverable from someone whom they have no contract with.
I have a VoIP line from AAISP. The equivalent is me calling my Nan, chatting for a few hours, and AAISP then sending her a "call connection fee" invoice even though she isn't a customer.
I don't understand how couriers are allowed to get away with this grift.
Indeed, even when VAT due, the fee is dodgy and maybe even the VAT they chose to pay.
DeleteIs this in prep for your import of the actual Stargate from SG1? https://www.stargate-fusion.com/actualites/1932-la-porte-des-etoiles-de-stargate-sg-1-est-vendue-aux-encheres.html
ReplyDeleteI do wonder what the import would be on that.