LTT Backpack £69 import to UK

[msknight]

It seems like UK customs chewed a brick on the import duty as they calculated it, and then recalculated it half an hour later. Noted that £18 of that is probably an extra processing fee that Parcel Force have kindly tagged on. Breakdown once I have the paperwork.

 

I've informed LTT Store support with all the reference numbers I have, but there's little point paying for the VAT at point of sale if it's going to still need extra at import. 

 

Needs investigation, and sadly only LTT can do that with DHL to find out what's going on.

[msknight]

Country of origin for shipping was listed as Germany on my parcel, so I've forwarded that to LTT and I should hopefully get the backpack, with the detailed customs paperwork, tomorrow. 

[mithusan55743]

That's interesting.

 

My backpack had no import fees at all and is at my delivery depot now.

 

Nevermind I just checked my tracking link on ParcelForce and it says I am going to get a customs bill come through shortly as well...

 

 

I bought two LTT Screwdrivers and had to pay £58.59 import fees. £50.09 of that was VAT even though I paid tax on checkout.

 

There seem to be a lot of inconsistencies with import charges and taxes.

 

@nicklmg Do you mind clarifying what is going on at all?

 

[YaBoiiGeorge]

1 hour ago, mithusan55743 said:

That's interesting.

 

My backpack had no import fees at all and is at my delivery depot now.

 

Nevermind I just checked my tracking link on ParcelForce and it says I am going to get a customs bill come through shortly as well...

 

 

I bought two LTT Screwdrivers and had to pay £58.59 import fees. £50.09 of that was VAT even though I paid tax on checkout.

 

There seem to be a lot of inconsistencies with import charges and taxes.

 

@nicklmg Do you mind clarifying what is going on at all?

 

Hi guys! Please keep this forum updated as I am expecting my backpack to arrive soon, and have the same message as you on the parcelforce website - and am eagerly waiting from the dreaded charges summary.

 

In regards to your VAT issue, I think I have the solution. I spent all night worrying about affording the import tax until I stumbled across this message from Nick: https://www.lttstore.com/pages/statement-on-taxes-in-europe-uk-and-norway

 

It seems that being charged VAT at checkout was a mistake and we can claim it back by submitting a request to lttstore, with proof of purchase and proof we had to pay VAT for the import.

 

I hope this helps!

[msknight]

38 minutes ago, YaBoiiGeorge said:

In regards to your VAT issue, I think I have the solution. I spent all night worrying about affording the import tax until I stumbled across this message from Nick: https://www.lttstore.com/pages/statement-on-taxes-in-europe-uk-and-norway

Good shout. I hadn't seen that.

Quote

If you reside in the UK: As of January 1st, 2021, eCommerce stores based outside of the UK must collect VAT at point of sale on all consignments delivered to the UK which are valued at 135 GBP or lower.

That's the key thing then. The backpack is above that threshold. As is my two screwdriver order  ... Oh well.

[Razercake]

hope they have it fixed by the time they send my screwdriver, cause the handling fee for this is 21$ from the postal service in Denmark & reading the post it seems they only cover the taxes you paid. which completely make sense, you are just getting a refund for the taxes they charged. really hope this IOSS issue can be resolved soon 

[mithusan55743]

1 hour ago, YaBoiiGeorge said:

Hi guys! Please keep this forum updated as I am expecting my backpack to arrive soon, and have the same message as you on the parcelforce website - and am eagerly waiting from the dreaded charges summary.

 

In regards to your VAT issue, I think I have the solution. I spent all night worrying about affording the import tax until I stumbled across this message from Nick: https://www.lttstore.com/pages/statement-on-taxes-in-europe-uk-and-norway

 

It seems that being charged VAT at checkout was a mistake and we can claim it back by submitting a request to lttstore, with proof of purchase and proof we had to pay VAT for the import.

 

I hope this helps!

Thanks! I didn't see this either! I am glad this is being worked on for future customers and that LTT is handling this properly.

[Just that Mario]

Double VAT is an old topic and import fees are not VAT.

[Thomas4]

Remember people we are dealing with the "GOVERNMENT".

 

All government's hold one thing near and dear to their frozen cold, blood pumps - I can't in all good conscientiousness call it a heart, and that's the theory of, "If it can be done easily and problem free, where did we f*ck up?" Along with "We're supposed to make mistakes, that way by having to fix them, we can increase our budget for next year."

[msknight]

On 11/9/2022 at 9:34 PM, Just that Mario said:

Double VAT is an old topic and import fees are not VAT.

This isn't double VAT. It's that goods of below a certain value, VAT is collected by the seller and collected at time of purchase even though they are outside the UK. Goods above a certain value are not charged VAT by the seller and instead customs sort it out. The problem being that if customs sort it out, there are invariably more charges added on, such as the charge that Parcel Force add on for the favour they do of paying the VAT up front and then recouping it from you later on.

 

It's just in this case, that LTT Store has collected VAT for goods above that threshold when they shouldn't have in this instance... which will get refunded in due course, but might also have resulted in excess VAT being charged... depending on what value was declared on the forms... ie. if the goods were 200, and VAT was 20%, then the total paid at checkout was 240... but depending on what was on the form, UK customs might have charged 20% on the original 200 or might have actually ended up charging 20% of 240, which would have resulted in extra charges. 

 

So... no... this is not the double VAT of old, and LTT will get on top of it in due course.

 

On 11/9/2022 at 10:09 PM, Thomas4 said:

Remember people we are dealing with the "GOVERNMENT".

 

All government's hold one thing near and dear to their frozen cold, blood pumps - I can't in all good conscientiousness call it a heart, and that's the theory of, "If it can be done easily and problem free, where did we f*ck up?" Along with "We're supposed to make mistakes, that way by having to fix them, we can increase our budget for next year."

Agreed, except in this case it's not the government that were to blame for the situation... at least, not this time.

 

This is the UK government web site which explains that VAT is applicable to £135, but over £135 it's not a simple case of VAT any more... customs duty is an extra... so it becomes harder for e-retailers to simply collect VAT any more... because then duty gets into the mix as well...

https://www.gov.uk/guidance/import-vat-and-customs-duty-on-gifts

 

 

Quote

 

Customs Duty

You’ll be charged Customs Duty on all goods sent from outside the UK (or the UK and the EU if you’re in Northern Ireland) if they’re either:

• excise goods
• worth more than £135

If you’re charged Customs Duty, you’ll need to pay it on both:

• the price paid for the goods
• postage, packaging and insurance

Type and value of goods	Customs Duty
Non-excise goods worth £135 or less	No charge
Gifts above £135 and up to £630	2.5%, but rates are lower for some goods - call the helpline
Gifts above £630 and other goods above £135	The rate depends on the type of goods and where they came from - call the helpline

You pay Customs Duty on excise goods of any value.

 

 

[Thomas4]

Uhh... the Customs Bureau IS part of His Majesty's Government.

[msknight]

1 minute ago, Thomas4 said:

Uhh... the Customs Bureau IS part of His Majesty's Government.

Yes, but this particular situation isn't their "fault."

[Bendomac]

Same issue here. Paid it already tho, emailed LTT store. Something to sort out a refund for someone I would think haha.
Will be an issue for all UK orders I would imagine. No idea why it says from germany

[Bendomac]

Dug a little deeper it seems it did get set to Leipzig in Germany from LA.
This may explain the customs charge issue since Germany is in the EU and UK isnt  . So the UK gov want customs for the Germany to UK leg?

[msknight]

Be cautious. Despite paying my charge yesterday and setting my delivery date for today, Parcel Farce has messed things up and I'm waiting for someone to call. Apparently two systems didn't synchronise correctly, or something. So despite having paid, booked and have the receipt, my parcel is still showing awaiting payment of customs fees. If that's the case for you also, then give Parcel Farce customer service a ring and ask them to look into it for you.

[msknight]

For what it's worth, the parcel shows on DHL and Parcel Farce tracking, that it came straight from LA to the UK, however the customs receipt shows Germany as the origin country for customs, so this whole thing is unfathomable from the customers point of view.

 

BUT ... one thing I'll add here, is that once the screwdrivers arrive, I'm not going through all this again. I'm not buying anything more from LTT until this is sorted out and I know what I'm facing. This is going to mean more than £100 in overpaid VAT (two orders, one for screwdrivers and another for backpack) that I don't think any of us can afford these days.

 

 

[YaBoiiGeorge]

4 hours ago, Bendomac said:

Dug a little deeper it seems it did get set to Leipzig in Germany from LA.
This may explain the customs charge issue since Germany is in the EU and UK isnt  . So the UK gov want customs for the Germany to UK leg?

It depends what charges you are referring to.

 

Customs duty is charged by Border Force/HMRC for every single thing worth more than £135 that comes in to the UK. This applies to every country.

 

VAT is charged, also on everything entering the UK, worth £39 or more. 

 

The issue is that the UKGov simplified the system, by making the eCommerce shops take VAT at the time of sale if it £135 or lower, so it can just be easily delivered (as no customs charge would apply at this price point) and not held at the Border for however long, and cause confusing charges. LTTStore's system has been taking VAT at point of sale EVEN if it is worth more than £135, which they shouldn't be doing. 

 

The customs charge whether it came from German as the originator, or Canada, would have been the same.

 

Hope this helps! 

[gameofyou]

Firstly I am really sad to be posting here, I do hope someone at LTT is actually reading this mess, messaged them a week ago about being charged Taxes in Canada AND Vat on arrival in the uk, and as of yet have had NO response to them. Linus is very quick to criticise other companies for poor communications yet they only provide an email address, and if they don't respond to you there is NOTHING you can do (except try the "public shaming"). I do believe you only see what a company is really like when you have a problem, and LTT are showing themselves as lacking, I doubt this will make the "WAN Show".

 

I also have been charged both Taxes in Canada on my Purchase and VAT on receipt in the UK. Even better Parcel force manage to lose my parcel for a week! It just sat in the London sorting office until I had to phone up TWICE to get them to actually do something about it. Well It just arrived! Parcel Force tracking does not go far back enough so I have to use DHL to fill in the eariler stuff, enjoy the detail!. 1 month total to arrived. I also had the country of origin claimed to be Germany, Parcel Force of course will not provide you any information about the sender of the parcel or let you see the customs declaration your just expected to pay.

 

To make matter worth Why are my "free stickers" put down as 1 dollar value on the customs declaration, I just paid VAT on a free item because LTT can't fill out a customs declaration correctly.

 

James

 

 

 

 

 

today. 

[msknight]

I think enough has happened now for the whole VAT situation to be discussed on the WAN show. If it isn't, I'll be very dissapointed.

 

Given the amount of strain that LTT Store is under, (because it is, I believe, a significant chunk of their business income now) I can understand it taking them a week to respond in normal circumstances... but having said that, the number of VAT mess ups caused by their collection of VAT when they are above UK/EU/other thresholds, is likely putting more strain on them. However, it is something which Linus should be addressing with urgency.

 

If this doesn't end up on WAN show, and Linus doesn't have a plan to deal with it... then it will will be a dark moment... it's all very well what he does walking the fine line with the big guns, but when it comes to the little guy and what is chunks of cash out of our wallets... that requires action, I believe. Over to you, Linus.

[MrAmos123]

I've received my Parcelforce letter demanding I pay £66.89 to release my backpack parcel.

What do I do here? LTTStore's support is non-existent or unacceptably slow. They give me 20 days to pay (before returned to sender), but my ticket has been open for 7 of those days without a reply.

 

Looking for the community for answers to an LTTStore problem... Doesn't make sense but it's all I have left.

I've paid for shipping/tax on the product, yet I'm being charged customs/import fee. I'm not sure how this makes any sense.

[msknight]

8 minutes ago, MrAmos123 said:

Looking for the community for answers to an LTTStore problem... Doesn't make sense but it's all I have left.

The LTT guidance is here - https://www.lttstore.com/pages/statement-on-taxes-in-europe-uk-and-norway

 

"In all cases where VAT has been paid at checkout and you are being charged again at delivery, please comply with their request and pay the fees so you can receive your package. Once fees are paid and your package has been received, contact our support team and attach a copy of your customs bill, customs decision, or receipt. "

 

Yes, it sucks that we have to pay twice and then wait for LTT to sort it out, ... yes, LTT (or rather, the selling platform they use) shouldn't have collected the VAT in certain cases, but there's little option for the moment.

 

And part of this is because in the UK (other countries have other levels) values above £135 not only attract VAT, but they also attract customs duties and other charges as well... hence customs can't off-load that to the sellers.

 

This really does suck for people at the moment, because money is tight, and some of us have already stretched our budgets to make these purchases in the first place.

[msknight]

To summarise what's going on...

 

There is a level - £135 in the case of the UK... https://www.gov.uk/goods-sent-from-abroad/tax-and-duty

"You will not have to pay anything to the delivery company to receive goods worth less than £135 unless they’re gifts over £39 or excise goods (for example, alcohol and tobacco)."

 

Below that magic £135, then VAT needs to be collected... but that's all that needs to be collected. Because it's that simple, then customs allow the seller to charge/collect the VAT on behalf of the country.

 

Above that magic £135, then not only VAT applies, but also Customs Duty and possibly Excise... which makes things more complicated. In that case, the overseas seller can't collect the VAT and the calculations have to be made by Customs when the goods are imported. These charges are not only made against the goods, but are also made against the costs of postage as well.

 

In the case of the backpack, this is well above the £135 and thus LTT shouldn't have collected the VAT ... and left it all to customs... but because things are not right on their platform, they charged VAT which will not only have to be repaid (because it was collected incorrectly) but there is a possibility that their collecting VAT actually contributed to the total charge made at Customs. It will take detailed investigation to find out whether this is the case.

 

In theory, LTT shouldn't even be asking for proof that we've paid customs... they should be automatically refunding it, because the law states that they shouldn't have collected it in the first place... but when a mistake on this magnitude happens, I can understand them wanting copies of the paperwork to cover their backside, even though this shouldn't have happened in the first place.

[MrAmos123]

I find it abhorrent we're being charged almost 1/4th of the backpack + tax cost in customs... Unbelievable. Plus the double-VAT... 

I've paid and replied to my ticket. I'll update on here when I get a response from LTT. If I get a response from LTT. If anyone from LTT reads this, ticket 67242.

[msknight]

4 minutes ago, MrAmos123 said:

I find it abhorrent we're being charged almost 1/4th of the backpack + tax cost in customs... Unbelievable. Plus the double-VAT... 

I've paid and replied to my ticket. I'll update on here when I get a response from LTT. If I get a response from LTT. If anyone from LTT reads this, ticket 67242.

The VAT rate (and customs duty) is down to the government.... so that part of it isn't LTT's fault. However, the mis-charged VAT payment is, and let's hope LTT puts some effort behind this.

[gameofyou]

Well I entered a review of the backpack which included issues about VAT, and within an hour someone responded to me with the boiler plate, telling me to mail support for a vat refund however I however already did this a week ago! So annoying.