Is VAT owed on gifts received from overseas?
I got an invoice from FedEx for over £40! Why? And must I pay it?

Robert emailed me: “My brother in Canada sent us Christmas presents of a scarf and gloves, delivered in good time by FedEx.
But in January I got an invoice from FedEx for over £40! Why? And must I pay it?”
Any goods over a certain value sent from outside the EU attract VAT (unless exempt, such as books) and customs duty when they arrive. Your scarf and gloves were a gift, so neither tax would be due if the value had been under £39.
But you write that your presents were worth well over that limit. If you’d ordered them from a business, the limit is £15, not £39. In both cases, if the value is above £135, customs duty is due as well. Those taxes must be paid. On top of the taxes, the carrier adds a handling fee, which goes under various names. Royal Mail, for example, adds £8. Some believe it’s unenforceable, but if the carrier won’t release your goods without payment, then that’s a moot point.
If your brother had sent each gift separately addressed to each of you, no tax would have been due. Perhaps a tip for next Christmas!
By entering your details you are agreeing to our terms and conditions and privacy policy. You can unsubscribe at any time.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.