UK VAT Charged to My Australian Order - Is It Legal, as an Email Exchange Indicates They Potentially Keep It as Profit

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  [Deactivated] on 29/07/2017 - 19:18

  what store?

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  peterpeterpumpkin on 29/07/2017 - 19:23

  +1

  As you suggested, UK businesses do not have to charge non-EU customers VAT. They just need to keep evidence that the item was dispatched to a non-EU country.

  Based on other people's experiences, there's not much you can do from Australia (http://forums.whirlpool.net.au/archive/2114993).

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  twinbag on 29/07/2017 - 19:33

  +1

  No they are not supposed to charge, but I don't understand why you paid it then whinged about it afterwards.

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  metro2012 on 29/07/2017 - 19:42

  Thanks, guys. I did a lot of reading online and found the same conclusion that there is nothing we can do from Australia unless I am in the UK and passing customs, on the way back to Aus. Still ends up cheaper than buying in Australia however just don't like the fact that they charge VAT to internationals and from the sound of it likely keep it for themselves if we live overseas.

  • 

    [Deactivated] on 29/07/2017 - 21:32

    Which UK store is this?

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  bobbified on 29/07/2017 - 19:57

  +2

  Whether it includes VAT or not, didn't you already agree on the total price at the time of purchase?

  • 

    metro2012 on 29/07/2017 - 21:09

    Yes, I did not read it correctly as I was ordering, more noticed the breakdown of the total on the receipt. Closing thread as result of no option to refund VAT outside of UK.

    • 

      bobbified on 29/07/2017 - 21:18

      +2

      For me personally, I really just look at the total price including everything like postage and if it's still a good price, then I put the transaction through.

      Even on Amazon, some of the postage costs are ridiculous, but even with that factored in, it's much cheaper then getting it locally. Some of the postage costs on individual small items can be USD$60! I assume that if anyone complains, they can always easily just jack up the price of the item by $50 and say that postage is $10. I'll still be paying the same total.

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  sane on 29/07/2017 - 20:55

  +1

  I take it you have an invoice? Did they call it VAT?

  If they did, then by law they HAVE to give it to the VAT taxman, so if you want to screw with them you can let the taxman know and let him make their life hell.

  They do it because things get more complicated if they don't charge VAT, and so they try to keep their life simple. Plus it's extra profit, and who doesn't like money for nothing?

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    metro2012 on 29/07/2017 - 21:04

    The email exchange from them clearly states initially that they charge the tax, however, use the tax charged to internationals are used for postage costs they incur, instead of being sent back to the tax office. After questioning how it could cost almost 100 pounds to send a small order, they wrote back the opposite, that it was actually VAT charged and they need to as are a UK company. - Not sure how to report them though for misleading customers…
    The receipt states 'tax' and not VAT on the actual receipt. Their second email back that contradicted the first confirmed it was a VAT tax charge to me. Just underhanded of them and a little annoying. The product was cheaper all the same, though, compared to Aus.

    • 

      sane on 29/07/2017 - 22:03

      +1

      Kinda doesn't matter, if they call it tax then the tax man wants it - they are kind of anal like that, it has to be accounted for. I used to be VAT registered, which is why I had to know their rules. Most companies that play this game end up calling it something else (eg admin charge) as a result.

      I think there is a link on their site for reporting dodginess. Mind I wouldn't say anyone should help the tax man out, but the option is there if you want to use it.

      Unfortunately you aren't going to get the money back either way.

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  cockneylondoner on 29/07/2017 - 22:05

  +1

  You might find this extract from the uk.gov website useful:

  VAT on exports to non-EU countries
  VAT is a tax on goods used in the EU, so if goods are exported outside the EU, VAT isn’t charged. You can zero-rate the sale, provided you get and keep evidence of the export, and comply with all other laws. You must also make sure the goods are exported, and you must get the evidence, within three months from the time of sale. This can be longer for goods that need processing before export and for thoroughbred racehorses.

  The time of sale is the earlier of:

  the day you send the goods to your customer
  the day you receive full payment for them
  You mustn’t zero-rate sales if your customer asks for them to be delivered to a UK address. If the customer arranges to collect them from you, an indirect export, you may be able to zero-rate the sale as long as certain zero-rating conditions are met.

  But I think that the sensible answer would be is that the system is too complicated for a single small value sale so it would be easier to charge the VAT and let the customer try and get a refund of the VAT. In practice this would be too complicated unless you have the product with you that has been purchased in the UK, a VAT receipt and a boarding card for your flight out that day. Even then there is a minimum purchase value before you will get a refund.
  As others have pointed out, if you weren't happy with the final purchase price why did you proceed with the purchase?

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  whooah1979 on 29/07/2017 - 22:24

  +1

  3) Is it illegal what they are doing and if so, how do I report them to the proper body (aka, not just a google or facebook review)

  no. they can charge vat and remit it to the hmrc. it's then up to the consumer to reclaim a vat refund from the hmrc.

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  Sensiekatie on 30/07/2017 - 09:40

  I paid for a subscription to 192.com (UK based) to tell y to find relatives I have met but they moved.

  This is an online UK service that will reveal addresses and phone numbers, as their directories are not readily available.

  I paid VAT - I imagine it is too difficult to prove where you are during this subscription process.

  During the process it had a note, overseas individuals could claim VAT back with a link. There was a form.

  I read the requirements to prove you were not in UK. I did not bother. For the amount of my VAT and the process required it was not worth it. It would have cost more than the amount.

  I think you will find there is a government process. Try searching government VAT refunds for overseas purchases.