Ignorance of the law, as is pointed out regularly, is no excuse.
I am well aware of this.
However, my question remains unanswered and it goes to the crux of the matter here:
Is it up to the individual (
who may not know that they have evaded this tax) to declare it unilaterally, or does it only become illegal if they refuse to pay (or more likely if they come up with a fraudulent excuse) if/when asked by HMRC?
If someone with no understanding of VAT/imports just thinks that Panamoz et al are a damn good deal, how can they possibly declare it if they don't know they've done anything wrong? As far as I recall, there is nothing on a Self Assessment form which asks if you have received goods from abroad without VAT being paid, so how else can you sensibly declare it?
At which point does it become illegal? Lack of declaration or lack of payment when requested?
To my mind, as someone who is VAT registered (16+ years) and imports stuff for business perfectly legitimately, I can't see it as being a criminal offence to buy from HK without personally declaring it. I actually believe that there is some sort of a deal being done between the suppliers and their local couriers, or a blind eye is being turned by the HK depots of the couriers at best, because HMRC rely on the information/declarations provided by the logistics companies to then collect monies due from the importer......
To give a different example, I just received a parcel from the States today along with a bill for £40 of VAT. It's not an issue, as I can claim back the VAT, but the courier is not capable of delivering it without receiving the payment. I know UPS, FedEx and DHL are also very strict about this sort of thing and I have business accounts with two of these where I export (and must declare values etc) to them before they take the goods away. DHL can be an exception where they will leave the goods with you along with a bill to be paid later, but this usually applies only if you are an account holder.
My own feeling here is that 'declaring it' once it has been delivered is tantamount to walking into a police station and openly telling them that you were doing 100mph on the motorway earlier that day and then asking them to lock you in a cell.
I firmly believe that the onus is on the revenue collectors here and that the importer is
not acting illegally. I've had goods from Panamoz and would have paid a bill to get the goods if requested by UPS on the doorstep. That's how it works. I was not with-holding anything, but at the same time, I genuinely know of no mechanism to relive myself of cash (and guilt?) without getting silly about it and probably making a small garden bird of myself in the process.