VAT on imported goods

yomchi

Hi guys,

I am hoping to import a few small bits from the US for a small business venture.
I was warned today by a friend about import VAT that will have to be paid as the goods are coming from a country outside of the EU.

I did a bit searching around revenue.ie and I just wanted to make sure I fully understand the guide lines. So my question is this;

If I import, for example €500 worth of goods do I have to pay 21.5% on that price, or is it valued a different way?

And also, how do I pay it? Do I have to wait for customs to contact me as it arrives or is it pre-paid?

Any advice is appreciated,
J

CathalDublin

The postie usually looks for it, or you get a letter from whoever the delivery company is to pay it before the goods are delivered
you pay the 21 1/2% of the invoice amount.
Sometimes your goods will get through without having to pay

yomchi

Thanks very much for the reply. Seems very straight forward. I've just heard some horror stories about the customs and importing, goods never arriving and being held captive etc etc. I suppose that's what happens if you don't pay the VAT!

All the same, it's hard to compete with the USD at the moment.

Thanks again.

dbran

Hi

If you are operating a business and register for VAT you are entitled to claim it back on your VAT return. Note only the VAT, not the customs duty.

Hope this helps


dbran

jor el

yomchi wrote: »

I suppose that's what happens if you don't pay the VAT!

Not necessarily. They can be held for valuation, or while waiting for you to pay, before they are delivered. Collecting the amount on delivery is common, but if it's a large amount then they might want payment before delivery.

The VAT rate is 21% now.

yomchi

dbran wrote: »

Hi

If you are operating a business and register for VAT you are entitled to claim it back on your VAT return. Note only the VAT, not the customs duty.

Hope this helps


dbran

uh oh, customs duty? So there's an extra payment as well as the VAT?

theaaao

Hey guys,
I recently joined this website called lockerz.com.Its a site which allows you to redeem epic prizes (ipods macs ipad etc) with points you earn from using the site.You get points for logging in,answering daily questions and watching videos,and soon enough from playing games.

Heres my issue.I signed up for this site without paying a cent and without giving my credit card details therefore I cannot be charged in anyway by lockerz (but they will never charge me because they give the stuff away for free).They give you the prizes as gifts/rewards from earning points,meaning YOU DONT PAY FOR THEM.
I have'nt redeemed any prizes yet but the site does say that 'you will be responsible for any incoming taxes or duties into your country if your country does not deem a free prize as a gift'.WHY does customs charge VAT and import duty on an item which has not been paid for and is specified as a gift?Why do customs not deem a free prize as gift?I know that they do this from talking to other members who have been charged the VAT on their gifts.
I would appreciate it if anyone can shed some light on this subject.

P.SIf you want to join lockerz.com you must be invited by a member.PM me and I can send you an invite if someone wants one.Hope this post isnt against any rules.