Do companies pay import duty from outside EU?

-crisp-

Like the title says.

I know people have to pay import duty on anything purchased outside the EU and shipped in.
Do companies have to pay vat as well or do they claim back like they can with costs made within the state?

RUDOLF289

-crisp- wrote: »

Like the title says.

I know people have to pay import duty on anything purchased outside the EU and shipped in.
Do companies have to pay vat as well or do they claim back like they can with costs made within the state?

Good afternoon,

Import duty depends on the commodity imported. Most furniture for instance is zero rated from a duty point of view. Most plastics are rated at 6.5%. It really depends on the commodity. Also, there are trade agreements. The most important one is the Generalised System of Preferences. Under developed countries fall into this category and their products can be imported with a GSP Form A against reduced or zero rate of duty.

VAT is levied @ 23% at time of importation. VAT registered entities are allowed to claim the VAT paid on imports as a deductible input in their periodic VAT return.

Hope that helps

Cheers,
Rudolf289

-crisp-

Thanks for your reply. I'm still a little confused so I'll explain it in a little more detail.

Well I want to start a small business producing paracord accessories. the paracord I'll get from suppliers of the USA made genuine product. But what I'm wondering is if I were to bulk buy accessories like clips and buckles from overseas outside the EU would I get shafted on import duty? Or do I pay it first and then claim it back?
The only info I can seem to find is either business buying within the EU or consumers buying from outside the EU.

Or is it better to just stay within the EU for all my purchases.

RUDOLF289

-crisp- wrote: »

Thanks for your reply. I'm still a little confused so I'll explain it in a little more detail.

Well I want to start a small business producing paracord accessories. the paracord I'll get from suppliers of the USA made genuine product. But what I'm wondering is if I were to bulk buy accessories like clips and buckles from overseas outside the EU would I get shafted on import duty? Or do I pay it first and then claim it back?
The only info I can seem to find is either business buying within the EU or consumers buying from outside the EU.

Or is it better to just stay within the EU for all my purchases.

Buckles and clasps will attract a rate of duty of 2.7% if imported from outside the EU. That is calculated over the cost of the product and the transport cost.

That doesn't sound like a significant hurdle .......

Bear in mind you also have to pay 23% VAT over the combined total of cost of product, transport cost and duty. If you are a VAT reggistered trader you can claim back the VAT paid on imports. Duty is not reclaimable.

Cheers,
Rudolf289

-crisp-

So I have to pay 2.7% duty on the product which I cant claim back.
And I can claim the 23% back.

Thanks again for your help

RUDOLF289

-crisp- wrote: »

So I have to pay 2.7% duty on the product which I cant claim back.
And I can claim the 23% back.

Thanks again for your help

If you are a VAT registered trader / company you are entitled to claim back the VAT paid on imports, just like you are allowed to claim back VAT on purchases in Ireland that are for your business.

Cheers,
Rudolf289