VAT and duty on goods cost only or also transportation cost

Bob24

Hi,

I have a parcel coming from the US on hold with FedEx for VAT and duty payment.

I asked for an invoice as the amount was higher than expected, and the VAT amount is quite a bit higher than 23% of the cost of the goods.

Inquired about this and they are saying VAT is also chargeable on freight cost.

Are they correct about this? It doesn’t make sense to me ... what I am importing is the contents of the packet and not the delivery service (if the delivery service itself was taxable, even a simple letter delivered by FedEx from the US should be subject to VAT).

Cheers.

goldenhoarde

Bob24 wrote: »

Hi,

I have a parcel coming from the US on hold with FedEx for VAT and duty payment.

I asked for an invoice as the amount was higher than expected, and the VAT amount is quite a bit higher than 23% of the cost of the goods.

Inquired about this and they are saying VAT is also chargeable on freight cost.

Are they correct about this? It doesn’t make sense to me ... what I am importing is the contents of the packet and not the delivery service (if the delivery service itself was taxable, even a simple letter delivered by FedEx from the US should be subject to VAT).

Cheers.

That's true once above 22 it's on the cost which must include the cost of delivery

Plus FedEx have an admin charge to collect the duty usually 10 euro

Bob24

goldenhoarde wrote: »

That's true once above 22 it's on the cost which must include the cost of delivery

Plus FedEx have an admin charge to collect the duty usually 10 euro

Thanks.

Yep there is an admin charge but it is a separate line on the invoice ans not part of the figure I am looking at.

What is the rational for including the delivery cost though? I didn’t purchase any delivery service in ireland and in any case if the contents is not taxable the delivery service itself is never taxable (what is annoying here is that due to the goods being fragile the delivery cost including insurance is actually quite high).

And what I also find annoying is that they don’t provide the details of how VAT was calculated (even if I take 23% of the total cost including delivery, their VAT amount still is around 5% more than that - and it definitely doesn’t include the admin charge which is a separate item on the invoice).

Bob24

Also doesn’t this say that there’s no VAT for shipment From and To a location outside of the EU?

https://www.revenue.ie/en/vat/vat-rates/search-vat-rates/H/haulage-goods-.aspx

Calahonda52

Bob24 wrote: »

Also doesn’t this say that there’s no VAT for shipment From and To a location outside of the EU?

https://www.revenue.ie/en/vat/vat-rates/search-vat-rates/H/haulage-goods-.aspx

https://www.revenue.ie/en/customs-traders-and-agents/importing-and-exporting/customs-valuation/index.aspx

Thats just the way it is