What to do if Royal Mail do not request VAT on imported goods?

[ronald1]

About four months ago I started a small business and I'm not required to register for VAT due to low turnover.

I would like to import some stock from outside Europe. About £2000 worth + shipping.

I have the choice of the foreign wholesaler sending by either courier (such as TNT) or by ordinary post. The ordinary post is significantly cheaper than using the courier.

Recently I purchased a small quantity of stock recently from abroad and used the private courier company and the courier paid the VAT on my behalf and then I repaid the VAT to the courier.

What I'm concerned about is if the postal system is used to despatch the goods to me what should I do if the Royal Mail do not pay the VAT on my behalf?

I just wonder as previously I have purchased something on Ebay (private purchase, not stock)which was sent by post to me from the States. It was worth £100 so VAT should have been due but the Royal Mail did not pay the VAT on my behalf and did not request any VAT payment from my either, obviously since they had not paid any.

This happened even though the full declared value was on the outside of the package.

So I'm wondering if I purchase £2000 of stock from the States and it is sent by ordinary registered post (not courier) and has the full declared value on the outside of the package complete with the 100% accurate invoice, what should I do if the Royal Mail do not collect the VAT on my behalf?

Do I inform HMRC that the VAT was not collected? If so, how do I do that?
Or is it the responsibility of Royal Mail to pay the VAT and collect the VAT from me, as the private courier did previously?

I'm just wondering if I should just use the courier (instead of post) as they pay the VAT on my behalf and then I refund the courier the VAT which they paid on my behalf.

[al_eebee]

It sounds as though you purchase was perhaps overlooked.

As I understand it, it is not that Royal Mail pay the VAT on your behalf (or forgot to) but that Customs missed the item.

Recent experience with a couple of items (personal not business) is that the item is held at Customs because VAT is due, Royal Mail pay the charge to release the item from Customs and pass this on to your with a handling charge

Have a look at
http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_CL_000204