# avoid import tax on replacement item



## justo (23 Oct 2012)

I ordered a pair of bike panniers from Canada and UPS charged my a hefty import tax. 

One of the bags broke and the supplier has agreed to send me a replacement. 

What should I instruct them to state on the package to explain that it's not a purchase per se and that I should not incur another tax charge? 

Thanks


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## dereko1969 (23 Oct 2012)

Replacement for faulty product?


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## vandriver (23 Oct 2012)

If the goods have been replaced free of charge under guarantee or warranty,no duty is payable.
However, VAT is payable on the full value of the goods because all replacement items are treated as new goods for VAT purposes.


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## justo (23 Oct 2012)

dereko1969 said:


> Replacement for faulty product?



Yes. 1 of the bags broke so the supplier is sending a replacement, free of charge.


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## justo (23 Oct 2012)

vandriver said:


> If the goods have been replaced free of charge under guarantee or warranty,no duty is payable.
> However, VAT is payable on the full value of the goods because all replacement items are treated as new goods for VAT purposes.



Thanks for this information. Could you clarify what you mean about the VAT? 

Do I have to pay VAT again? Surely I paid this to the supplier when I made the original purchase as a portion of the original cost?


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