Why do my relatives in France have to pay taxes on a gift I sent them?

Question

I sent my cousin in Paris a gift package that contained a $370 nail filing machine and $100's worth of baby clothes. I received a call from her this morning stating that customs is holding on to her package until she can get receipts for these goods and will have to pay taxes (25%) on them.

I've never sent anything internationally so I don't understand why she has to pay taxes on a gift - is this a misunderstanding? Do the French officials think I'm a seller and she's a buyer? Is there anyway to avoid having to pay these taxes? She's not rich and that's why I was sending her these things in the first place.

Any insight or leads are greatly appreciated.

Thanks!

Answer 1

If French Customs is holding up the shipment for payment of duties and VAT then you DID ship it internationally. Any shipment that originates outside of France is an international shipment by definition.



If you shipped it from within the EU then no duties or VAT would be assessed. However if you shipped it from outside the EU, such as from the US, then she will have to pay the customs duties and VAT on the goods. If she fails to do so, the shipment will be seized by French Customs and either auctioned off to the public or destroyed.



Gifts are subject to Customs duties. There is usually a duty-free allowance but it's modest in most cases, on the order of 30 to 50 Euros per day per recipient. The French Customs authorities are just collecting the duties and taxes that French law requires them to collect. There's no way around that. If she wants the goods, she must pay the duties, taxes and any associated fees.



I'd wager that you didn't attach a customs declaration label to the shipment, or if you did you put what the French Customs authorities feel is an unreasonably low value on the goods. French Customs will then set the value in most cases. If your cousin has proof of what was paid for the goods, Customs may accept that as proof of a lower value. Otherwise she must pay based upon French Customs' assessed value of the goods.

Answer 2

"Gifts" are such a fraud area, that customs classifies gifts as non-gifts once the amount is above a cutoff. Some countries use $20 as the cutoff. France appears to use 45Euros ($90) and would only believe it if the items were gift wrapped.



Your sister is "importing" items into France. France wants the customs tax. Generally, she wants the receipts because if you let France price them, they may decide the nail machine is worth $500 and the clothes are worth $500.



The typical tariff runs 5-17% and VAT is another 17%.

Answer 3

that's Europe for you..

they pay 60% taxes



Print up a "Craigs List" receipts and say the cost was what the shipping was, and say the shipping was free..



(Rember teh Boston Tea party?) To HE|| with the taxes!