Questions about Irish goods taxing

YanisSprunks

Hello.

Well basicaly ive gotten an oportunity to get 48palets of finest russian vodka for 4euro a bottle but it comes from russia, only problem is i have to take 33palets from the suplier and total values is arround 76,000euro the drink is abosolutely legal and comes with all the paper work, i was wondering how mutch would i get taxed if i found a buyer in ireland and wanted to ship it here.

Very new to trading and all of this legal stuff but if i can make money out of something at these times i would like to take the opportunity.
Thanks.

Also maybe anyone knows any firms that would buy in large quantities and how to find them ?

seamus

You'll have to pay excise & VAT, though I'm not sure of the specifics.

http://www.revenue.ie/en/tax/excise/duties/excise-duty-rates.html

As far as I can tell, on vodka you pay excise of €31.13 per litre of pure alcohol. So 50% vodka would have excise of €15.57 on the bottle.

Afaik, 23% VAT is then payable on top of this.

Probably best to ring Revenue and get it from the horse's mouth.

ResearchWill

seamus wrote: »

You'll have to pay excise & VAT, though I'm not sure of the specifics.

http://www.revenue.ie/en/tax/excise/duties/excise-duty-rates.html

As far as I can tell, on vodka you pay excise of €31.13 per litre of pure alcohol. So 50% vodka would have excise of €15.57 on the bottle.

Afaik, 13.5% VAT is then payable on top of this.

Probably best to ring Revenue and get it from the horse's mouth.

I would assume the VAT would be 23%

According to this page http://taxpolicy.gov.ie/wp-content/uploads/2011/04/TSG0716.pdf

The rate per % per litre is €0.3925 so a bottle of Vodka of 700 ml at 40% would work out at €10.99 then add purchase price total €14.99 then add 23% VAT (yup tax on tax as far as I know) so landed price €18.43, is my guess. In that case it's cheaper in Tescos where I can buy Smirnof Red for €20 a litre.

Peanut2011

YanisSprunks wrote: »

Also maybe anyone knows any firms that would buy in large quantities and how to find them ?

You would need to look at wholesalers or distributors for this as I doubt any one large shop would go for such a deal.

seamus

ResearchWill wrote: »

I would assume the VAT would be 23%

Of course it is. :rolleyes: (Fridays!)
I've updated my post.

YanisSprunks

Thank you for replies guyz but wow that seems a lot for every litre of vodka i would have to pay arround 15euro in taxes ? the purchase price thats 19euro per bottle. thats insane there is no way i can sell that ammount of vodka for that kindof price becouse shops need to make profit too.

I wonder how tescos can afford to sell a litre of vodka for arround 20euro if thats the case, dont they have to pay taxes ?

So lets say 33 palets 48crates 12botles per crate would cost me 76,000euro.
So thats 19,008 1 liter bottles at 40% x 12.45=236,649euro tax +(purchase price-76,000)= 312,649*23%Vat (71909)
=719096+ 312,649=382,322 devide that per bottle (19,008) =20.22euro per bottle so i need to find someone who would take them for more then that. is that correct ?

RUDOLF289

YanisSprunks wrote: »

Thank you for replies guyz but wow that seems a lot for every litre of vodka i would have to pay arround 15euro in taxes ? the purchase price thats 19euro per bottle. thats insane there is no way i can sell that ammount of vodka for that kindof price becouse shops need to make profit too.

I wonder how tescos can afford to sell a litre of vodka for arround 20euro if thats the case, dont they have to pay taxes ?

So lets say 33 palets 48crates 12botles per crate would cost me 76,000euro.
So thats 19,008 1 liter bottles at 40% x 12.45=236,649euro tax +(purchase price-76,000)= 312,649*23%Vat (71909)
=719096+ 312,649=382,322 devide that per bottle (19,008) =20.22euro per bottle so i need to find someone who would take them for more then that. is that correct ?

One thing to bear in mind is that if your are a VAT registered business, the 23% VAT charged on importation is a deductible input in your VAT return. In other words, whilst you have the outlay at the time of importation, you can claim it back. Equally the VAT your charge to the shop or distributor is a deductible input in their VAT return. Only the VAT they charge to the end user (i.e. the person buying the bottle in the shop) is a cost to the end user.

Therefore, if you are registered for VAT, you shouldn't take the 23% VAT into your costs as VAT is cost neutral untill the final consumer

Cheers,
Rudolf289

YanisSprunks

RUDOLF289 wrote: »

One thing to bear in mind is that if your are a VAT registered business, the 23% VAT charged on importation is a deductible input in your VAT return. In other words, whilst you have the outlay at the time of importation, you can claim it back. Equally the VAT your charge to the shop or distributor is a deductible input in their VAT return. Only the VAT they charge to the end user (i.e. the person buying the bottle in the shop) is a cost to the end user.

Therefore, if you are registered for VAT, you shouldn't take the 23% VAT into your costs as VAT is cost neutral untill the final consumer

Cheers,
Rudolf289

So does that mean i can charge the whoever buys the alcahol just the asking price without vat ? and i dont have to pay any vat at all ? or do i have to pay the VAT to government as soon as i import it ? sorry this is confusing

ResearchWill

YanisSprunks wrote: »

So does that mean i can charge the whoever buys the alcahol just the asking price without vat ? and i dont have to pay any vat at all ? or do i have to pay the VAT to government as soon as i import it ? sorry this is confusing

You have to charge the VAT when you sell it, but any VAT you pay will be allowed as a deduction.

Cost to you 100
plus VAT 23

Total Paid 123

You Sell 200
VAT 46
Total 246

As you have allready paid the €23 VAT all you will then have to send to Revenue is another €23.00.

YanisSprunks

So i still have to pay all of it, but i get it all back when i claim for it as tax back ?

ResearchWill

YanisSprunks wrote: »

So i still have to pay all of it, but i get it all back when i claim for it as tax back ?

Are you registered for VAT?

RUDOLF289

YanisSprunks wrote: »

So does that mean i can charge the whoever buys the alcahol just the asking price without vat ? and i dont have to pay any vat at all ? or do i have to pay the VAT to government as soon as i import it ? sorry this is confusing

If you import alcohol, you will be liable for ;

1) Excise duty (charged on the % volume)
2) VAT over the price of the product + shipping costs + excise

If you sell you will need to charge 23% over your selling price.

In your VAT return (and you really need to be registered for VAT, as otherwise you can NOT claim the VAT paid on imports back) you claim the 23% VAT paid on imports back and your remit the 23% VAT charged to your client(s). If all transactions happen within the same VAT period, you deduct the VAT paid on imports from the VAT charged and remit the balance to Revenue.

It is essential however that you (are) register(ed) for VAT.

Cheers,
Rudolf289