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Posted Wed, 21 Feb 2024 14:54:11 GMT by
Hi, I am an exporter from Germany to the UK. I have a problem with the UPS which calculated the wrong rate of VAT on my shipment of books (20% UK standard rate instead of 0% VAT rate on books) to the UK. The problem is that I sent my shipment from Germany to the UK on a DDP basis, meaning that all taxes and duties incurred in the UK are to be billed to me in Germany. UPS calculated the wrong rate 20% (3500 euros - calculated from the respective GBP amount of the total shipment value) and billed it to me. It is just one of my many similar shipments with UPS from Germany to the UK, all other occasions the billing was correct, i.e. the UK VAT on books was put at 0%, except for this one shipment. So far, nothing could have been done about it. It is 2.5 years now. UPS Germany says they are not responsible, it was UPS UK which made the mistake. UPS UK says that the reimbursement of the wrong UK VAT must be done by the UK importer using the form C79. Another suggestion was to use the form C285. The problem is that both forms require the UK importer to file the case. It is unfortunately not possible because it was not him (the UK importer) who was billed for this wrong amount but me: because the shipment was on condition of DDP, or free domicile, all the UK taxes and duties were paid by me, the German exporter. The UK importer cannot claim the bill which was not his and which he did not pay. How can I (an exporter to the UK who used DDP terms) claim the bill paid wrongly on my behalf from HRMC? What is the way you suggest resolving this issue?
Posted Wed, 21 Feb 2024 17:25:20 GMT by Customs oldtimer
Hi Uk legislation only allows the importer, as legal customs debtor, to reclaim any overpaid duties and taxes irrespective of who physically paid those taxes. If your customer was named as importer and is VAT registered they will have received a C79 which entitles them to reclaim any import VAT through their VAT return . They may have already done this, have you checked with your customer whether they have already claimed the VAT back. Unfortunately there isn’t a lot you can do other than continue to pursue UPS .
Posted Tue, 27 Feb 2024 13:24:56 GMT by HMRC Admin 8
Unfortunately we are unable to assist as it will be UPS who needs to take steps to correct this as the arrangement was DDP.
Customer can speak/contact NDRC for further advice if C285 can still used for a reclaim.
We would advise contacting the Customs and International trade helpline on 0300 322 9434 if you have any other issues with your query.
Thank you.

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