Must I pay 21% VAT on importing photo gear from States? need an expert advice.

localchap

Hi lads,
I'm about to import from States some Canon Pro photo gear, and wondering if I had to pay any Vat of 21% upon customs clearance???I'm not a registered professional just in case.I read don't remember where exactly, pro photo gear is not a subject for neither VAT or customs duty.To reach customs dept. in Dublin is only useless attempt.Tried a couple times, every time answering machine message is on, left my message twice with contact details nobody ever rang me back.All inputs are really welcome.

magicbastarder

i would imagine that pro photo gear is exempt in the sense that you claim the VAT back if you're using it for professional purposes.

GristlyEnd

Yes you are liable to VAT at 21% even if you are VAT registered. Anything from outside the EU is liable to duty & VAT at point of entry unless the item is exempt from VAT or you have VAT exemption authorisation (VAT 13B).

Remember that duty & VAT is calculated on the landed price, that is the cost of the gear plus shipping to Ireland.

Exactly what are you ordering and what values are they and I can give you a figure for taxes.

mikedragon32

Unless you are registered for VAT and the gear is for your business needs, you'll have to pay the VAT.

Even if you are VAT registered, you'd still have to pay Customs and claim it back in the same way as you would claim your VAT back from a trip to your wholesaler.

Former Revenue employee and afaik, the rules haven't changed since I left.

Just because it's pro equipment doesn't make it exempt. It's who buys it that determines what the tax liability is.

localchap

clear enough, thanks a million lads for all inputs given.The most unfair is that calculating VAT on landed price , adding first shipping charge then calculating VAT on the whole amount is TOTAL RIP OFF:eek: in my opinion

magicbastarder

not at all. it's what all retailers have to pay - the value of an item obviously has to include the cost of shipping.

i.e. the cost of transportation is, in a sense, part of the cost of manufacture.

localchap

magicbastarder wrote:

not at all. it's what all retailers have to pay - the value of an item obviously has to include the cost of shipping.

i.e. the cost of transportation is, in a sense, part of the cost of manufacture.

Hope you are joking, even if it comes to retailers,any shipping cost consists VAT in itself (upon international postal agreements), so adding shipping price to product value then taking VAT over the whole amount is what people normally call RIP OFF!!!Now if it comes to goods imported for my own needs, and I'm not going to resell anything, how come then should I pay VAT from shipping costs being a private non business subject????HUH??sounds like complete nonsense to me

magicbastarder

no, it's not a rip off, it's what all irish retailers have to deal with. the cost to them of the item has to include transport costs - and what you pay is cost to them + their profit + VAT.
it would be deeply unfair to retailers not to charge VAT on transport costs.

serotonin_sam

I am buying goods second hand from a friend in the States. He will fedex/ups them over to me. Do I have to pay VAT/Customs duties in this instance?

rymus

if there's a significant amount of gear, I'd strongly consider flying over and picking it up personally.

Paulw

Get your friend to 1) send it as a gift (marked clearly), and 2) if he/she is putting a value, make sure that the value is well below the actual value of the goods.

So, even if you are caught, you pay less.

digitalage

You will have to pay VAT on secondhand goods if you get caught...I have ordered over 15000euro worth of photography equipment over the past few years from the US and to be honest its about 50/50 wether you get caught, but one thing I learned quickly don't use the likes of fedex nor UPS, as they declare the VAT on the goods and pass it on to the revenue. I use USPS Global Express Mail service which is very good, order on monday have it by friday from bhphotovideo.com, also since I start using my work address for the deliveries I have'nt paid any duty.

PaulieC

serotonin_sam wrote:

I am buying goods second hand from a friend in the States. He will fedex/ups them over to me. Do I have to pay VAT/Customs duties in this instance?

Legally, yes you are obliged to pay VAT and possibly duty importing goods into the country, regardless of whether or not they are secondhand or not.

take that however you will...

serotonin_sam

thanks lads. I did a search on 'customs duty' and this thread came up. Didnt realise it was photography forum when i posted - although 1 of the items is photography related (themal imaging cam). The other item is quite bulky - size of a small suitcase.
Are bigger items more likely to be controlled by customs do you think?
Also, how can the value of the items be determined by customs if second hand?

PaulieC

well that's where you have to get creative. . Stuff loses a lot of value these days

localchap

NO FEDEX, UPS, DHL AND OTHER ***CKERS!!!They do brokerage themselves on behalf of revenue plus then charge you on the top of customs VAT+duty paid for their so called "services" which makes you pay literally a good bob for nothing.

GristlyEnd

localchap wrote:

NO FEDEX, UPS, DHL AND OTHER ***CKERS!!!They do brokerage themselves on behalf of revenue plus then charge you on the top of customs VAT+duty paid for their so called "services" which makes you pay literally a good bob for nothing.

Those services are clearing the goods through Customs & Excise on your behalf. If you are ordering something from outside the EU and it is subject to ad valorem duty and VAT then they must declare it by way of a Customs entry, its the law. Another point is they don't offer this service on behalf of Revenue, they are offering there service as a Customs Broker to clear the goods for you. If you don't want to pay the charge, clear it through Customs yourself.

localchap

DarrenG wrote:

Those services are clearing the goods through Customs & Excise on your behalf. If you are ordering something from outside the EU and it is subject to ad valorem duty and VAT then they must declare it by way of a Customs entry, its the law. Another point is they don't offer this service on behalf of Revenue, they are offering there service as a Customs Broker to clear the goods for you. If you don't want to pay the charge, clear it through Customs yourself.

From what you're saying, lets say, If I decline UPS customs broker services so then I have to clear goods through customs myself???Sounds like nonsense.But who clears parcels sent by USPS or any other NON courier service???Recepeints????:D You've made me laugh now;) Anyway, I don't think anyone has to pay for such services which are not offered to a customer but considered to be compulsary, when I MUST pay afterall whatever fee they charge me.
PS.DarrenG, are you a some postal courier company employee or a customs broker yourself??You sound very defending on behalf of those lads:o

daenis

DarrenG is right about the courier services. Legally customs can not release any goods from outside the EU unless the VAT and duty has been paid on the package. What usually happens is that they pay custons and then you pay them. Their charge is usually for the forms that have to be completed and is usually quite reasonable. And before you ask, no i don't work for a courier company but i do deal with them alot.

Spyral

i would imagine that pro photo gear is exempt in the sense that you claim the VAT back if you're using it for professional purposes.

Yes you are liable to VAT at 21% even if you are VAT registered. Anything from outside the EU is liable to duty & VAT at point of entry unless the item is exempt from VAT or you have VAT exemption authorization (VAT 13B).

this is true but if yo are a professional photographer just remember that you could be caught out later if they don't find you paying tax of the photos you sell and additionally your insurance for your cameras goes up too.