The Daily Telegraph - Saturday - Money

C’est un shakedown! Expats unfairly given huge customs bills

- Jessica Beard

French customs officers have been accused of unfairly applying high import taxes on British parcels, as a growing number of people have been caught out by complicate­d customs duties.

Since Brexit, any gifts sent abroad to or received from the EU are subject to import VAT and customs duties. Any gifts worth less than €45 (£38) should be free of French import VAT and customs duties. However, Britons have repeatedly reported being charged large doorstep bills on low-value items.

Kate McGee, who lives in ChâteauGar­nier in the centre of France, said she believed the French customs department had overcharge­d her as she had frequently paid more than 50pc of the value of her gifts in taxes.

One diary she received from Britain worth £ 11 incurred a € 23 import duty fee, she said. Meanwhile, she was charged €13 in import duty to receive a £20 calendar for 2022, sent as a gift from her daughter in Wiltshire.

“This imposition of custom duty happens every time, and the sums of money demanded seem random and illogical,” she said.

Ms McGee said she paid €9 to receive her husband’s jacket that he had left behind on a visit to the UK. In another instance, she was charged €10 to receive a box of chocolates sent by her daughter. “It is outrageous and an example of the disdain that the French government has for the UK. Frustratin­gly there is nothing that I can do to protest here in France,” she said.

Andrew Thurston, of accountanc­y firm MHA MacIntyre Hudson, said: “This shouldn’t be happening and there’s no real answer to why it is. It should at no point cost more than 20pc of the goods’ value.”

Britain left the EU customs union, the single market and common VAT area on Dec 31 2020. This brought major changes in the way importers and exporters have to account for goods arriving from and going to the EU. Customs officers can open packages to assess their value and this can add an administra­tive fee.

As far as the European Union is concerned, Britain is now a “third country”, said Mike Warburton, previously a tax director with accountant­s Grant Thornton and now the Telegraph’s Tax Hacks columnist. “This becomes a painful issue and delays everything for the people who are receiving the bills. I expect there will be many disputes over this,” he said.

When goods are imported VAT will usually be charged, not by the overseas supplier but by the importer. The extra charges are usually collected by the courier on behalf of the Government, with customers asked to pay before they can pick up their package.

However, an increasing number of online shoppers are being caught out by double taxes. Mr Thurston said: “We have seen cases where end customers were being charged on imports when it arrived in the country, and the provider charged them for it online before they received the goods. That’s where the confusion lies and they can be charged twice.”

The charges can also apply to existing belongings. Any goods worth more than £ 135 arriving in the UK from abroad must be declared and will be subject to customs duty.

A recent court ruling showed a couple called Mr and Mrs Brooks were charged £ 6,211 in import duty and VAT to move their furniture back to Britain after relocating from France following Brexit. The retirees moved back to the UK in 2016 but left most of their furnishing­s in their French property while selling the home to avoid paying storage. However, the property did not sell until Nov 2020 so the furnishing­s were shipped back after Brexit on Dec 31 2020.

Anyone entering the UK is not required to pay any duty or tax if the goods have been used by them in the country they are moving from and if the property is declared for relief within 12 months of them becoming British residents.

Mr and Mrs Brooks were forced to pay the substantia­l tax bill because they had passed their 12 month deadline. Their challenge was rejected by the tax tribunal on the grounds that Brexit was not an “unknown event” and that Covid was not an “exceptiona­l event” because almost everyone everywhere was affected.

Douane Finances, the government agency responsibl­e for French customs charges, did not respond to requests for comment.

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