Buyer got charged VAT, wants return&refund

About a week ago I sold a quite expensive camera lens to Norway, and just this morning I got a mail from the customer saying they got charged VAT, and they'd like to call everything off.
I've never given any guarantees for avoiding VAT so I'm not interested in accepting a return on those grounds, besides it's a lens I can't really afford to get stuck with.
If she opens a case in paypal, what are my chances? My return policy states that returns are only accepted for faulty goods, and she has not received the parcel yet as it's in customs. And my paypal account is registered in Japan so neither of us are in the protection covered areas. :lamo:

Looks like customer was hoping Norwegian customs would "not notice" her parcel, but they obviously did and now want to charge Import Duty (not vat which is different).

It is important to state in your terms and conditions (especially when you sell across international boundaries), that any AD VALOREM or IMPORT TAXES that the customer's resident country may apply, are NOT included in your price, and are for the customer's account.

You should also say, that if the goods arrive at customs, and the customer neglects or refuses to pay the duty, you will not be in a position to refund the money. Additionally, if customs officers return the goods, you will be liable for the return shipping.

You should only refund when the customer is in receipt of the goods, and they are found to be the wrong goods, (or other condition in your refund policy)

I'm reasonably confident that PayPal would not sanction a refund in your case, as the goods were despatched and are now awaiting collection by the customer - only that she is refusing to pay her customs charge - a problem which is not of your making in any way whatsoever.

You kept your side of the bargain - supplied the goods ordered and shipped them to the customer.

Anyway, she cannot ask for a refund until she has determined that the goods are:-

1. damaged
2. incorrect
3. lost in transit

... and she can only do this when she has SEEN them - so she must pay her customs officers first!

Perhaps contact your local PayPal office and explain that you have delivered the goods that were ordered, in good condition and in good faith. Tell them about the customer's refusal to pay import duty and that this has nothing to do with you, or the terms and conditions of the Contact of Sale between you and the customer.

If it were me, I would not issue a refund in this case.