Vat for buying good from teh north

the GALL

I'm looking to get some goods bought in from the UK these will cost me £3,200(that's the best price I can find them at) plus Vat and Duty, which is about €23% vat plus duty and charges 10% total 1/3 extra on top of the purchase price which would make it somewhere around £4,300 Total when they arrive. I've been talking to a mate who says I can get the same goods delivered from the north for £3,450 with no Duty or Vat to be paid when I get them at my door. He says there is no customs border between the north or south for Tax reasons. Is he making this up as he goes along or what's going on? Surly the UK and Irish governments see this as a money looser for both parties and don't allow it. Cheers for any clarification on this matter or even an offical link that puts the story straight.

Vestiapx

the GALL wrote: »

I'm looking to get some goods bought in from the UK these will cost me £3,200(that's the best price I can find them at) plus Vat and Duty, which is about €23% vat plus duty and charges 10% total 1/3 extra on top of the purchase price which would make it somewhere around £4,300 Total when they arrive. I've been talking to a mate who says I can get the same goods delivered from the north for £3,450 with no Duty or Vat to be paid when I get them at my door. He says there is no customs border between the north or south for Tax reasons. Is he making this up as he goes along or what's going on? Surly the UK and Irish governments see this as a money looser for both parties and don't allow it. Cheers for any clarification on this matter or even an offical link that puts the story straight.

Are you a vat registered business? Vat is simple but depent on your reg status .

There is sorta no duty on goods from NI to ROI. there is duty on goods from GB to NI if there is a "danger of them entering the EU" so if the place in NI is offering to sell to you for a price that is cheaper (all ex vat ) then you can save by buying from them.

If a product was in the NI before duty started being an issue ( the system is a joke from GB to NI at the moment) then there is definitely a way that you can save money however the supplier could end up being charged duty in the future. (Probably won't there has already been one amnesty and I can see a second comming )

the GALL

Thanks for the reply, is there anyway of the courier holding the goods till I pay Vat or duty I've been caught like this before and it kinda takes the fun out of the bargain if you know what I mean. I get stuff from the states and usually get a notice that there is vat duty to be paid before it gets handed over. I'm just a bit dubious that a purchase foe such an amount will be let slide when if you buy from the UK direct they'll hound you if it's over €30 (or whatever)

the GALL

I'm not Vat registered, if that helps the equation

Vestiapx

the GALL wrote: »

Thanks for the reply, is there anyway of the courier holding the goods till I pay Vat or duty I've been caught like this before and it kinda takes the fun out of the bargain if you know what I mean. I get stuff from the states and usually get a notice that there is vat duty to be paid before it gets handed over. I'm just a bit dubious that a purchase foe such an amount will be let slide when if you buy from the UK direct they'll hound you if it's over €30 (or whatever)

From NI?
no you just buy from NI and it costs whatever it costs.

from GB it should be sold at a no UK VAT then you will have to pay ROI VAT and handling and duty on entry.

so for you its likely the answer is buy from NI, the supplier in NI will not be able to do what is happening at the moment indefinitely but currently your friend is right.

davindub

If you buy goods imported within the confines of the trade agreement there is no duty. But that is dependent on duty being paid on import to NI.

If you can get the goods in without duty, great, but I wouldn't rely on the assumption that you can.

As a non taxable person they are obliged to charge you VAT.

RUDOLF289

the GALL wrote: »

I'm looking to get some goods bought in from the UK these will cost me £3,200(that's the best price I can find them at) plus Vat and Duty, which is about €23% vat plus duty and charges 10% total 1/3 extra on top of the purchase price which would make it somewhere around £4,300 Total when they arrive. I've been talking to a mate who says I can get the same goods delivered from the north for £3,450 with no Duty or Vat to be paid when I get them at my door. He says there is no customs border between the north or south for Tax reasons. Is he making this up as he goes along or what's going on? Surly the UK and Irish governments see this as a money looser for both parties and don't allow it. Cheers for any clarification on this matter or even an offical link that puts the story straight.

First off, goods from mainland UK travelling to NI are subject to customs formalities at export and import stages.
If the goods "are at risk to travel to Ireland - or other EU member states - they are subject to Duty on Importation into NI, unless they are manufactured in the UK.

As to VAT, since you are not registered for VAT the NI supplier has to levy VAT at UK rates.

What your friend is suggesting appears to be illegal. It could have consequences for the supplier in NI.

Cheers,
Rudolf289

Vestiapx

RUDOLF289 wrote: »

First off, goods from mainland UK travelling to NI are subject to customs formalities at export and import stages.
If the goods "are at risk to travel to Ireland - or other EU member states - they are subject to Duty on Importation into NI, unless they are manufactured in the UK.

As to VAT, since you are not registered for VAT the NI supplier has to levy VAT at UK rates.

What your friend is suggesting appears to be illegal. It could have consequences for the supplier in NI.

Cheers,
Rudolf289

If the goods were already in NI at the beginning of the year then there will be no duty. The "at risk" clause is nonsense and shows a total misunderstanding by whoever decided it of how people move and trade, personally I would be interested in how it could be shown any goods were not going to end up in ROI. All goods will be "at risk" unless we ask for id from retail customers on purchase and instigate a hard border.

RUDOLF289

Vestiapx wrote: »

If the goods were already in NI at the beginning of the year then there will be no duty. The "at risk" clause is nonsense and shows a total misunderstanding by whoever decided it of how people move and trade, personally I would be interested in how it could be shown any goods were not going to end up in ROI. All goods will be "at risk" unless we ask for id from retail customers on purchase and instigate a hard border.

I am sure the EU is not that concerned with purchases in NI by private individuals.

What does concern the EU is NI companies selling products to companies in the EU. That is where the "at risk" issue comes in. Through VAT returns, Intrastat and VIES returns, there are tracking and checking mechanisms in place. Plus there are some issues that the UK is "slow" in dealing with, like providing EU officials with real time access to Customs information systems. I am sure these will be dealt with in time.

And the NI protocol is about avoiding a hard border on the Island of Ireland.

the GALL

Thanks for all the information guys, my main concern is that I get hit with a bill from the courier before the goods are released to me as I am not a business.

RUDOLF289

the GALL wrote: »

Thanks for all the information guys, my main concern is that I get hit with a bill from the courier before the goods are released to me as I am not a business.

Why would you expect a tax bill from the courier company?

There is no border between NI and IRL. Therefore there are no customs formalities. No customs formalities means there will be no tax levied on the receiver in IRL.

Not sure how the company in NI selling you the goods has to deal with his tax situation. If the goods arrived in NI after 23:00 on 31DEC2020, selling them on to a private individual or company in the EU would potentially incur Duty. But that would be their issue.

the GALL

RUDOLF289 wrote: »

Why would you expect a tax bill from the courier company?

There is no border between NI and IRL. Therefore there are no customs formalities. No customs formalities means there will be no tax levied on the receiver in IRL.

Not sure how the company in NI selling you the goods has to deal with his tax situation. If the goods arrived in NI after 23:00 on 31DEC2020, selling them on to a private individual or company in the EU would potentially incur Duty. But that would be their issue.

not a vat/tax bill from the courier company, just them saying they are not handing over goods till they collect the vat/tax on behalf of the government because of the size of the purchase.

RUDOLF289

the GALL wrote: »

not a vat/tax bill from the courier company, just them saying they are not handing over goods till they collect the vat/tax on behalf of the government because of the size of the purchase.

Ok, the only time a courier collects VAT/Duty is when they have had to present a customs declaration and outlay the Duty/VAT to Revenue on foot of that customs declaration. As explained already, there is no border between NI and IRL, therefore there is no customs declaration required to be filed by the courier company when carrying the goods from NI to IRL, which means they have no money to collect from you.

Hope this clarifies?

Cheers,
Rudolf289