Paying tax on items coming from outside the EU

GerBear93

Hi,

I'm hoping someone could shed some light on this for me

I am looking at ordering €6000 worth of clothing for a business I plan on starting. Apart from VAT what else would I be looking at paying?

The supplier also said "We own the only Tax-free license in Bali on the import of fabrics to the export of clothing. This saves 40% on the production costs, making our prices the lowest in Bali" Would this make purchasing from this supplier cheaper than most non EU suppliers because of their ax free licence?

Would this licence benefit someone like me who's buying the products in bulk?

Irishphotodesk

Irrespective of what the seller is claiming, you may be liable for import duty which can be approximately 20% of price including shipping cost.

If you were to purchase a similar product within the EU you can have them knock off the VAT/domestic tax in their country - assuming that you are vat registered in your home country, however when you sell you must declare how much VAT you have collected (generally 23% of the selling price) and give it to revenue.

I'm not an expert by any stretch of imagination but believe I have a good understanding of import/export due to various personal purchases throughout the years.

GerBear93

Irishphotodesk wrote: »

Irrespective of what the seller is claiming, you may be liable for import duty which can be approximately 20% of price including shipping cost.

If you were to purchase a similar product within the EU you can have them knock off the VAT/domestic tax in their country - assuming that you are vat registered in your home country, however when you sell you must declare how much VAT you have collected (generally 23% of the selling price) and give it to revenue.

I'm not an expert by any stretch of imagination but believe I have a good understanding of import/export due to various personal purchases throughout the years.

Thank you for the reply.

Would you suggest any websites that would help with the understanding of tax and imports?

MOH

You could try the EU TARIC database, more details here

If you hit 'Browse' above the goods code you'll get a list of categories you can drill down into to find the relevant product.

The Irish Revenue site will have more details on import taxes, and from memory the UK Revenue & Customs site used to have a slightly more user-friendly copy of the TARIC database.

GerBear93

I appreciate the replies. Completely over looked the import tax on this one!

silver2020

Everyone thinks they can save a few quid getting stuff direct.

Are you sure of the quality - what quality control have you in place

Are you sure you are getting the right price?

Are you sure they are reputable?

Duty on clothing is mostly 12%

Duty is payable on the landed cost.

Vat is then due on the landed cost + duty

So say €1,000 delivery, €6,000 cost, duty would be €840 and vat would be €1803

manor

There is a fulfillment center in Kilkenny who can bring it for you, Redskyeurope