Parcels: Fees and Charges
The question
To ask the Chancellor of the Exchequer, what assessment her Department has made of the impact of the cumulative costs of VAT and associated handling fees applied to parcels sent from distribution centres in Great Britain to customers in the European Union on UK consumers; and whether she is taking steps to reduce those costs.
Answered by Dan Tomlinson
VAT is a broad-based tax on consumption and is normally due in the country where the consumer of the goods or services is located. The application of this destination principle in VAT achieves neutrality in international trade. The VAT rate applied is a matter for the jurisdiction in question.
We note the introduction of a handling fee on small parcels into the EU is still under discussion. Any VAT and handling fee would be applied on import to the EU, this wouldn't be a cost directly borne by UK consumers.
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