No vat on goods under €200

tyler_d

I received some goods from outside the EU from a courier expecting to pay vat. However they called me and told me as its in the 'Medium package' category there is no vat charged on goods under €200.

However Fedex delivered a package the next day for goods worth €40 and charged me vat. I told them about the medium package rule but they said they never heard of it.

I can't find anything online about it. Can anyone help to clarify this I do plan to bring in a few more goods from outside of the Eu under €200.

NickD

I ordered a christmas present for the little man, was 60 dollars, just got told i need to pay 27.87 euro vat......eh what?

The_Pretender

You think that you wouldn't have to pay VAT on goods under €200?

Captain Chaos

It's anything over €40 that is subject to VAT and a handling fee by customs as far as I know. I've had items worth about €60 stopped before, it also includes the shipping cost into the VAT cost.

angelfire9

Afaik €200 rule applies to goods you bring in to the country yourself

tyler_d

So there is a rule but its not for trading purposes, is that correct?

Seamus1964

Anything over €22 that is subject to VAT /Duty and a handling fee by customs (AnPost anyway)

tyler_d

This is what i thought but I wonder why a major courier is telling me that, as its under €200, thats its tax free. Its a paper product so there is no custom charges on it.

Seamus1964

Just human error I guess

Alan Shore

€22 seems to be the number

http://www.citizensinformation.ie/en/money_and_tax/tax/duties_and_vat/value_added_tax.html

RUDOLF289

tyler_d wrote: »

I received some goods from outside the EU from a courier expecting to pay vat. However they called me and told me as its in the 'Medium package' category there is no vat charged on goods under €200.

However Fedex delivered a package the next day for goods worth €40 and charged me vat. I told them about the medium package rule but they said they never heard of it.

I can't find anything online about it. Can anyone help to clarify this I do plan to bring in a few more goods from outside of the Eu under €200.

Hello Tyler_d,

I don't know about this "medium package" rule. Reason you can't find anything on line about it is, is because it doesn't exist.

Customs applies VAT & duty on the basis of the value declared. Not every package through every courier system is declared properly, but in principle, all things being equal, you should have paid VAT (and possibly duty)

Have a look at the following thread. That should give you a good idea of what's what in this area

http://www.boards.ie/vbulletin/showthread.php?t=2055862554

Cheers,
Rudolf289

Mr. Incognito

There is an exemption for VAT registered traders where the goods are €260 or less.

I guess this courier was getting confused between business and private individuals

11. Parcel post importations of taxable goods
VAT is not payable at the time of importation by a VAT-registered trader on parcel post importations of taxable goods for the purposes of his or her business provided the value of each such consignment is €260 or less. However, VAT must be accounted for by the trader in box T1 of the VAT 3 return for the period. A trader entitled to input credit will be able to set off against this amount in box T2 of the return any VAT deductible in respect of the parcel. Importers of taxable goods should advise their foreign suppliers to quote the importer’s VAT registration number on the customs declaration form or on the wrappers of green label packets.

http://www.revenue.ie/en/tax/vat/guide/imports.html#section4

tyler_d

Thanks for the information. Really appreciate it.

I better declare the vat then. Vat is on both the value of the goods and delivery isn't it?

srsly78

Mr. Incognito wrote: »

There is an exemption for VAT registered traders where the goods are €260 or less.

I guess this courier was getting confused between business and private individuals



http://www.revenue.ie/en/tax/vat/guide/imports.html#section4

Does that refer to goods imported from outside the EU? If it's goods from inside the EU you have to apply to the importing country with an EVR request right?