No your didn't miss anything you are actually very astute.
They are supposedly a reputable organisation, and the item was payment on delivery. I know I know, I was very naive to think this would go smoothly. This is actually the second item they have purchased off me so I foolishly believed that everything would go smoothly.
This is what they wrote me in regards to my request of a PayPal payment upfront and how that was not possible and as to why I could I trust them with a payment on delivery method....and gosh, how could you accuse us of acting unethically! We are "insert name of company", gosh, the nerve... Shock horror gasp.
"Paypal is not escrow. The funds are not held independently!
In so far as a guarantee it is our offer to you that serves as a guarantee. We are a business not a criminal organisation! We pay within 24 business hours of receipt at our secure Hatton Garden address."
This was their response when VAT was applied:
"> It isn't common to incur charges. I always use methods to
>> minimise/eradicate them by buying insurance from a separate insurer and
>> putting low value on the parcel.
>>
>> I'm afraid that my offer didn't include provision for VAT and import
>> duty. I haven't received a letter yet with any information. When I do I
>> will let you know.
>>
>> If the VAT is too much for you to absorb then I can send the item back to
>> you."
This was their response when I asked them to refund me postage:
"I do believe that I know how the system works too and have legitimately
> saved my customers import duty. I thought that you would do the same.
>
> I have answered many many emails, taking time and consequently money, I do not therefore believe that I have done anything that warrants
> me to pay for services un-rendered.
>
> Your latest email unnerves me slightly. I find the tone slightly
> accusatory."
And her final verdict:
"Not having been previously affected by VAT I priced my offer accordingly.
I will contact the relevant people but I cannot accept liability for any
postage charges"
And finally...
"I'm sorry you feel taken advantage of but I don't really understand the sentiment.
This is not personal, it's just business."
And my original email that apparently sounded accusatory and had her unnerved:
"Dear 'insert organisation',
I've done a lot of research today into international transactions and what incurs VAT charges. It seems that the value of the package has to be extremely low to not incur VAT and that it is considered fraud to write a different value on the package. I feel comfortable knowing that I have done the right thing by customs despite the inconvenience.
Hence my suggestion is, I am happy to cover half of the VAT, this will ensure that the parcel arrives safely and mitigate the cost of the fees for you. Being that the VAT would equate to an item of approximately 600 GBP and essentially you would be receiving a 2500 GBP item with VAT correctly paid, it would be a very good outcome for yourself as well.
I do believe this is a very fair offer and also reduces the risk of the item being delayed or lost on its return trip.
If you are not happy with this resolution, could I please request that customs is notified as soon as possible that you will not be paying VAT on the item so that the item may be returned as quickly as possible. If you do choose to reject the item, I have a request that the postage and handling costs be compensated back to me. The cost of postage was 70 GBP. I am happy for the item to be returned, however this return has resulted because of a lack of understanding of the UKs customs fee policy and as a buyer, I do believe there is a responsibility to understand your own custom fees in advance of making an offer.
I look forward to hearing from you,"