Wondering if anyone here can explain.

Dad got hit for VA and an £8 handling fee on top for something he just thought he was getting mum for a birthday present from ebay. OK. I suppose these things happen but I’m puzzled by the UK VAT portion of the bill.

Item was US $39.95 on the customs form.
VAT charged this side is £7.89

to get there and apply VAT on the UK value, I’d need to be working on an exchange rate of around $1 = £1.02.

What am I missing?