Vat on bought item on ebay

rookie1470

Hi,

I bought an item from china on eBay a while back that cost €32.73. I received a letter from customs stating that they have the item and that I should email them the receipt to see if any vat is due. I did this and I just got an email stating that I owe €7.52 vat and €6.00 postage!!!!! Can this be right?? Especially the postage amount! I don't have the letter on me at the moment but is there a value on good that you can get in and anything over that amount there is a charge?? This happened once before and when I sent the receipt from eBay there was no vat and no extra postage!!!
Any thoughts on this???

Nody

I think you may be confusing the postage with handling fee and the limit is 22 EUR inc. the item AND shipping cost.

rookie1470

Nody wrote: »

I think you may be confusing the postage with handling fee and the limit is 22 EUR inc. the item AND shipping cost.

According to the email from customs it's postage and vat!!! Why do I have to pay now when I'm nearly sure the other item I had held by customs was about the same price and wasn't charged!!

rookie1470

Part of the customs email

Total Value of Goods - € 32.73

Customs Duty - € 0.00
VAT @ 23% - € 7.52
An Post Fee - € 6.00
Total for Collection - € 13.52

vandriver

Where does it mention postage??The An Post fee is the administrative charge for liaising with customs and paying the vat on your behalf.

rookie1470

vandriver wrote: »

Where does it mention postage??The An Post fee is the administrative charge for liaising with customs and paying the vat on your behalf.

Sorry, read the email incorrectly. My question was originally,is there not a set amount and once you go over that there is a vat charge??

Nody

Nody wrote: »

I think you may be confusing the postage with handling fee and the limit is 22 EUR inc. the item AND shipping cost.

rookie1470 wrote: »

Sorry, read the email incorrectly. My question was originally,is there not a set amount and once you go over that there is a vat charge??

As per previously comment.

rubadub

rookie1470 wrote: »

My question was originally,is there not a set amount and once you go over that there is a vat charge??

Some items just slip through. If its a busy day I expect they just go after the higher value items.

They officially say they do not collect VAT below €6. So at the current 23% rate the actual limit for most items is above €22 its €26.08

Hi,
I was reading on revenue.ie that the limit is €22 until something is applicable for VAT when importing from online shops

http://www.revenue.ie/en/customs/leaflets/pn1179.html

Consignments not exceeding a total customs value of €22 may be imported without payment of VAT.

However it goes on to say

Where the customs duty on a consignment of goods amounts to less than €10 it will not be collected. Similarly, VAT liability amounting to less than or equal to €6 will not be collected.

So on typical imported items like a DVD the VAT is 23%, so if the DVD is €25 it is above the €22 threshold limit, but the VAT would only be €5.75 so is below the €6 limit. Am I right in thinking that this in effect means the real threshold value for non-excise items at 23% is €26.08 -since only items above this value will have VAT equal or above €6.

Thanks

Dear ***,
Your calculations in the example you quoted are correct but do remember that, if the freight costs or the VAT rates increase, the €22 threshold will produce a different result. This threshold is set in European Law, while the €6 de minimus limit is just a local practice based on administrative expedience.

Regards,


****
Customs Division

sandin

rookie1470 wrote: »

Part of the customs email

Total Value of Goods - € 32.73

Customs Duty - € 0.00
VAT @ 23% - € 7.52
An Post Fee - € 6.00
Total for Collection - € 13.52

Its correct - you have to pay it.

Value of goods = cost price + postage.
Vat is on to of the total cost
An post fee is their cost of doing the paperwork (UPS charge €13.50 + vat)

If you buy from outside the EU you will be paying vat just like everyone else does.

rubadub

You will also be paying VAT and the equivalent of the an post fee in any shop here too, the accountants, or whoever in the business have to handle payment of VAT & duty. Its just that these costs are all masked and bundled into one.

This would be why an post have a lower limit, its presumably not profitable to do it below €6. Its not like they are getting the entire €6 with no expense on their side.

rookie1470

Thanks guys for the information.