Hello,
Does anyone know exactly how the VAT and Duty is calculated. I have just bought off EBay, from the US, a camera attachment for $70 (€60 approx) plus shipping $35 (€30 approx). I have been charged €6 duty and €21 VAT. The quoted price for customs on the shipping document was $50 (€43). The duty as charged would come to 10% of the origional cost but the VAT (at 21%) would equate to an overall cost of €100.
Is the vat calculated on both cost price and shipping? Is the duty also added in before VAT? This would still only come to €96 total and thus VAT nearer €20 (ok, only €1). If they had used the quoted cost, €43, it should have been €43+€30+€5= €78, VAT = €16.
I have been informed recently, by others that buy regularly, that the shippers, DHL in this case, are now always collecting the VAT and duty as a cash flow generator.