UPS and VAT

Discussion in 'International Business' started by FrankenBoy, Jul 23, 2021.

  1. FrankenBoy

    FrankenBoy UKBF Newcomer

    4 0
    Does anyone know the deal with UPS and their VAT charges?

    I export high value items in very low quantities (3 to 4 a month) using UPS. The volume of sales doesn't make me eligible for a credit account, just a basic one pay as you go one. I always download the receipt after booking the courier and there is never a VAT calculation on the receipt. I noticed whilst checking through my bank statements that every time UPS take a payment there is another UPS payment taken for a little over 20% which I presume is VAT but there's no mention of it on any of the paperwork UPS provide- they just take it from my account. The receipt they provide doesn't mention the other smaller, presumably VAT charge. I'm voluntarily VAT registered due to the amount of international sales I do so really need to claim it back.

    I've contacted 4 different UPS departments, spending a total of 2 hours on the phone, being passed from one department to another and no one is able to help, usually telling me they don't have the clearance to deal with customer accounts, despite being in the invoicing dept...

    Any pointers as what I should do regarding claiming it back from HRMC? As I said, UPS don't supply invoices, just a receipt without the mystery 20% charge taken from my account. Everything else is fully itemised.
     
    Posted: Jul 23, 2021 By: FrankenBoy Member since: Jul 23, 2021
    #1
  2. Trevor Andrews

    Trevor Andrews Contributor

    302 89
    Most peculiar, we deal with UPS in Spain and usually get full invoices.
    If your exports are to Europe they may be charging an admin fee. We normally pay around €15 per delivery from UK.
     
    Posted: Jul 25, 2021 By: Trevor Andrews Member since: Feb 9, 2021
    #2
  3. FrankenBoy

    FrankenBoy UKBF Newcomer

    4 0
    There's an option on the UPS order form that says 'recipient pays VAT, customs duty and handling fees' or words to that effect. I always have this set to buyer- goods are priced without VAT applied. They are several times above the 150EUR threshold and some customers elsewhere pay little in the way of tax & duty compared to the EU/UK.

    The extra charges not on the receipt are always 20% of the cost of shipping or just over.
     
    Posted: Jul 25, 2021 By: FrankenBoy Member since: Jul 23, 2021
    #3
  4. Trevor Andrews

    Trevor Andrews Contributor

    302 89
    You say its "20% of shipping" I am wondering whether they are charging you the UK VAT on the delivery charge.

    They invoice you for the delivery so they will charge you UK VAT on the net delivery cost to you. What you charge your customer is up to you. The recipient will pay VAT in there country for the goods, delivery and any import charges.
     
    Posted: Jul 26, 2021 By: Trevor Andrews Member since: Feb 9, 2021
    #4
  5. FrankenBoy

    FrankenBoy UKBF Newcomer

    4 0
    Yes that's my take on it also. Trouble is I have no paperwork for the 20% charge- there is no mention of the charge on the receipt and I do not receive a VAT invoice. UPS deny it exists, when I call they always claim they cannot help (wrong department) and will not provide a VAT invoice.

    Edit. When shipping to New Zealand, Australia, Israel etc this is a significant expenditure.
     
    Posted: Jul 26, 2021 By: FrankenBoy Member since: Jul 23, 2021
    #5
  6. Trevor Andrews

    Trevor Andrews Contributor

    302 89
    Well they are being illegal then, they are obliged to provide a VAT invoice .

    I had trouble until I emailed their Customer Service Department and then it got sorted. I assume you have done this. If all else fails I would move to DHL - never had any problems with them and you get an account manager if you do.
     
    Posted: Jul 26, 2021 By: Trevor Andrews Member since: Feb 9, 2021
    #6
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  7. FrankenBoy

    FrankenBoy UKBF Newcomer

    4 0
    Yes I've fired off a couple of emails using the web form but no reply yet. Yes moving to DHL is the plan, waiting on them to get back to me about opening an account. trouble is I still need to get evidence of the VAT charge in order to claim the VAT back.
     
    Posted: Jul 26, 2021 By: FrankenBoy Member since: Jul 23, 2021
    #7
  8. Trevor Andrews

    Trevor Andrews Contributor

    302 89
    Good luck and hope you some response.
     
    Posted: Jul 28, 2021 By: Trevor Andrews Member since: Feb 9, 2021
    #8
  9. lesliedocherty

    lesliedocherty Contributor

    2,318 319
    No chance of getting a response from them, we have been trying for months
     
    Posted: Jul 28, 2021 By: lesliedocherty Member since: Jun 17, 2006
    #9
  10. jimbof

    jimbof Contributor

    381 90
    The staff at the end of email address <[email protected]> have provided me with invoices when I've sent them lists of tracking numbers in the past, for items I've sent using UPS's website self-service system.
     
    Posted: Jul 29, 2021 By: jimbof Member since: Apr 10, 2020
    #10
  11. jimbof

    jimbof Contributor

    381 90
    Are you having UPS collect from you?

    In my experience the shipping and insurance costs are charged separately (including the VAT) to the collection charge. The collection charge is £2.40 (£2 + VAT). Is that the charge you are questioning? So you will get at least 2 charges per shipment if each shipment involves a separate collection.

    I'm yet to manage to get a receipt out of UPS for the collection charge - they seem to only send the invoices from the above address for the actual shipment / insurance charge.

    If it is the £2.00 charge for collection, there is only £0.40 in VAT to reclaim on it (assuming you can get the invoice for the actual shipment). For £0.40 x 4 times a month I'd limit how much effort I was putting into it, and just not claim it if it came to it.

    If it isn't the £2.40 collection charge, maybe provide some numbers to help understand exactly what you are being charged.
     
    Posted: Jul 29, 2021 By: jimbof Member since: Apr 10, 2020
    #11