Northern Ireland consumers wrongly charged VAT on EU orders
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Simon Miller, from Belfast, contacted Which? after he wrongly received a VAT charge for some curtains he ordered from an online EU-based retailer.
The Northern Ireland (NI) protocol means consumers in NI are exempt from paying additional customs when ordering from the EU. So Simon was surprised when, after placing his order, he received an email from the courier, DHL Express, asking for £95.82 in import duty and VAT.
He contacted DHL Express who said it would email him once his case had been reviewed, but he didn't hear back again. After speaking to various consumer bodies in NI, he was advised to speak with HMRC.
HMRC wrongly informed him that he needed to pay customs on anything over £135. Simon explained these fees don't apply to consumers in NI, but the person he spoke to kept repeating that NI is part of the UK and that living there doesn't make a difference.
Simon then looked into the process for claiming a VAT refund. He was shocked by the mountain of paperwork required; 'it looked horrifically complicated,' he told us.
Fortunately, DHL Express stopped chasing him for the charges a few days before the curtains were delivered. 'I can only presume DHL looked into it and removed the charges, but it does make me wonder how many people in NI are getting charged incorrectly,' Simon added.
Other NI consumers face incorrect charges
Concerningly, Simon's experience doesn't appear to be an isolated incident.
The Consumer Council for Northern Ireland warns on its website that some consumers are being incorrectly charged import VAT and parcel handling fees. However, it told us that most parcel movements happen without issue. It says it regularly engages with HMRC and will bring Simon's case to its attention.
Which? contacted DHL Express on Simon's behalf, to find out what had happened. It told us the shipment was incorrectly classified at the time of booking due to an error. The problem was identified during transit, but the customs process had already been triggered. It apologises for Simon's experience.
- Find out more: do I have to pay VAT, import and handling costs?
What to do if you're wrongly charged customs fees
If you live in Northern Ireland, you shouldn't face any additional VAT charges when ordering from the EU.
If you live in other parts of the UK, you don't pay VAT if your order costs £135 or less when you buy online. Any VAT charges at this point should be clearly listed on the receipt or invoice and in the UK, the current VAT rate is 20%.
If you're wrongly being charged VAT on something you've ordered from the EU, contact the courier to contest the charges before paying them.
DHL Express told us it encourages customers who are having any issues with customs charges to get in touch.
You can also reach out to the Consumer Council for Northern Ireland. It says it can 'investigate the issue and use this information to advocate on behalf of consumers with our stakeholders across the UK and EU.'
If you end up paying the fees to get your parcel, you can reclaim these charges by completing forms on Gov.uk.
There's more information about the forms you'd need to complete on the Consumer Council's website.
Which? is keen to hear from other consumers who have had problems with customs, particularly over the busy festive shopping period. If you'd like to share your story, you can reach us at yourstory@which.co.uk.
You can also use our free delivery complaints tool to start a complaint with the courier.
Get in touch. If you've got a consumer rights problem you need put right, email us at yourstory@which.co.uk
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