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Question re: cost of importing

  • 14-07-2009 1:14pm
    #1
    Registered Users, Registered Users 2 Posts: 852 ✭✭✭


    Hi,
    I've a quick question regarding the cost of importing an item for resale to a private individual in Ireland.

    Let's say I source an product in China for 100 Euro including p&p.I understand I have pay import/excise duty (21%?) and then charge the private individual vat at 21.5%. Does this mean the product will cost me 142Euro approx before I even add on a profit margin?

    If the product comes from within the EU I take it there are no excise/custom duties applicable?

    Thanks.


Comments

  • Registered Users, Registered Users 2 Posts: 703 ✭✭✭lecheile


    DannyD wrote: »
    Hi,
    Let's say I source an product in China for 100 Euro including p&p.I understand I have pay import/excise duty (21%?) and then charge the private individual vat at 21.5%. Does this mean the product will cost me 142Euro approx before I even add on a profit margin?

    If the product comes from within the EU I take it there are no excise/custom duties applicable?

    Thanks.

    Hi Danny - you are right re adding the import duty and VAT (which by the way is payable on the import duty and shipping cost). The import rate applied will depend on the type of product you are importing some have 0% duty - check out here for more details... http://www.revenue.ie/en/about/foi/s16/customs/taric/index.html

    You will then have to pay VAT (probably 21.5% but depends on the product) so your total cost of goods imported will be

    ((cost of goods+shipping)*1+import duty)*(1+(VAT rate))

    If you are registered for VAT you will be able to claim back the VAT amount paid, but will need to pay the VAT amount of Sales back to the revenue. If you are not going to be registered for VAT the difference between cost of goods imported and selling price will be your gross margin.

    If importing from the EU, no import duty but VAT will be payable but can be reclaimed if registered for VAT.


  • Registered Users, Registered Users 2 Posts: 115 ✭✭BearsyBoo


    When Ive imported things like this when I used normal mail i very rarely got stung for customs yet when i used dhl, fedex etc. i always did plus ridiculous handling charges so if you can wait a few extra days you should go for normal mail service delivered by an post and you might save a few extra quid!


  • Closed Accounts Posts: 677 ✭✭✭darc


    wardy32 wrote: »
    When Ive imported things like this when I used normal mail i very rarely got stung for customs yet when i used dhl, fedex etc. i always did plus ridiculous handling charges so if you can wait a few extra days you should go for normal mail service delivered by an post and you might save a few extra quid!

    I wouldn't use the chinese mail system - its utterly unreliable.

    And customs don't "sting" you. You are obliged to pay the import duties and vat. Of course if you want to do without children's allowance, future pension, health service etc etc, then don't pay your taxes, but if you use any state service or receive any state payments for anything then pay your dues like everyone else.


  • Registered Users, Registered Users 2 Posts: 115 ✭✭BearsyBoo


    darc wrote: »
    I wouldn't use the chinese mail system - its utterly unreliable.

    And customs don't "sting" you. You are obliged to pay the import duties and vat. Of course if you want to do without children's allowance, future pension, health service etc etc, then don't pay your taxes, but if you use any state service or receive any state payments for anything then pay your dues like everyone else.


    Get of youre high horse!!! it was a figure of speech !!!!!


  • Closed Accounts Posts: 250 ✭✭GP


    DannyD wrote: »
    Hi,
    I've a quick question regarding the cost of importing an item for resale to a private individual in Ireland.

    Let's say I source an product in China for 100 Euro including p&p.I understand I have pay import/excise duty (21%?) and then charge the private individual vat at 21.5%. Does this mean the product will cost me 142Euro approx before I even add on a profit margin?

    If the product comes from within the EU I take it there are no excise/custom duties applicable?

    Thanks.

    as other have stated + don't forget to factor in whatever delivery costs to the end user etc.


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  • Registered Users, Registered Users 2 Posts: 794 ✭✭✭RUDOLF289


    Hello DannyD,

    Let's start at the beginning.

    In order to establish what your likely outlay is for the product you intend to import from outside the EU (e.g. China) you need to establish the customs tariff number. You can
    do that in any number of ways, the shortest route is to contact the tariff classification
    unit in Nenagh, the details are as follows ;
    [font=Nimbus Roman No9 L, Times New Roman, serif]Phone :[/font]
    • [font=Nimbus Roman No9 L, Times New Roman, serif]Agricultural Goods:[/font][font=Nimbus Roman No9 L, Times New Roman, serif] 067-63437 [/font]
    • [font=Nimbus Roman No9 L, Times New Roman, serif]Textiles:[/font][font=Nimbus Roman No9 L, Times New Roman, serif] 067-63241 [/font]
    • [font=Nimbus Roman No9 L, Times New Roman, serif]Chemicals:[/font][font=Nimbus Roman No9 L, Times New Roman, serif] 067-63240 [/font]
    • [font=Nimbus Roman No9 L, Times New Roman, serif]Mechanical, Electrical and Other Goods: 067-63469[/font][font=Nimbus Roman No9 L, Times New Roman, serif] [/font]
    • [font=Nimbus Roman No9 L, Times New Roman, serif]Fax[/font][font=Nimbus Roman No9 L, Times New Roman, serif]:[/font][font=Nimbus Roman No9 L, Times New Roman, serif] 067 32385[/font]
    • [font=Nimbus Roman No9 L, Times New Roman, serif]E-mail[/font][font=Nimbus Roman No9 L, Times New Roman, serif] : [/font][font=Nimbus Roman No9 L, Times New Roman, serif]tarclass@revenue.ie[/font]
    That will enable you to establish the % of import duty you will be liable for. The VAT, as already indicated by Lecheile, is calculated over the invoice value of the goods, plus shipping costs plus import duty. The VAT is likely to be 21.5%.

    If you are a VAT registered trader, you can claim the VAT you pay on imports back through your VAT return. This is generally offset against the VAT you would have to remit on your sales.

    In relation to importing from another EU member state, the following applies ;

    To quote directly from the VAT Guide 2008;

    The supply of goods by a VAT-registered trader in one EU Member State to a VAT-registered trader in another EU Member State normally qualifies as an intra-Community supply. A VAT-registered trader in the State may zero-rate the supply of goods to a customer in another EU Member State if:
    • the customer is registered for VAT in that other EU Member State,
    • the customer’s VAT registration number (including country prefix) is obtained and retained in the supplier’s records,
    • this number, together with the supplier ’s VAT registration number, is quoted on the sales invoice,
    • the goods are dispatched or transported to that other EU Member State.

    So, again, if you are a VAT registered trader, your supplier in the other EU member state can supply you without charging you VAT. In that case, you need to account for the VAT liability in your VAT return.

    In relation to your VAT3 return you need observe the following ;

    1) In box E1 you need to record the value of sales to other EU countries
    2) In box E2 you need to record the value of Goods received from other EUcountries
    3) In box T1 you need to record the total VAT liability of goods and services supplied plus intra EU acquisitions and parcels imported VAT free
    4) In box T2 you need to record the total deductible VAT in respect of your purchases and Intra EU acquisitions and VAT paid on imports from outside
    the EU

    The next thing is : INTRASTAT returns

    Traders engaged in intra-Community trade are also obliged to make a periodic INTRASTAT return, for statistical purposes, where the value of goods acquired by them from other EU Member States exceeds Euro 191,000 per annum.

    Further information on the VIES and INTRASTAT returns is available from the VIMA Office, Government Offices, Millenium Centre, Dundalk, Co. Louth. – Phone number (042) 9353700 or LoCall 1890 251010, or by email to vimahelp@revenue.ie.

    Hope this will assist. If you require any further assistance just let me know.

    Regards,
    Rudolf289


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