VAT on Birthday Money

kabakuyu

Relative just received demand from an post for 16e vat and 3.5e admin charge on a 60e cash gift from the UK sent in birthday card to him on his 60th, do you have to pay vat on birthday maoney?

Princess Calla

How did they know there was money in the card?

Seems very strange.

thomas 123

https://www.boards.ie/discussion/2058335402/vat-on-birthday-money

It looks like yes: https://www.revenue.ie/en/customs/individuals/relief-gifts-low-value/rules-gifts.aspx

Scumbags.

You can receive a gift without payment of Customs Duty and Value-Added Tax (VAT) if:

• the value of the gift (including insurance, freight and postage costs) is €45 or less
• the gift is correctly declared
• the gift has been sent from a private individual outside the European Union (EU) to a private individual within the EU
• the gift is for the personal, or family use, of a private individual in the EU
• there is no commercial or trade element, that is, the goods have not been paid for by the recipient
• the gift is of an occasional nature only such as a present for a birthday or anniversary.

A gift received may contain two or more items with a combined value of greater than €45. In such cases relief is given for as many of those items as add up to a value not exceeding €45. For example, if you receive a gift containing three items with a value of €20 each, your relief applies to two of the items only. The value of an individual item cannot be split up.

Genghis

How was the €60 sent? Say it was 3 x €20 notes and postage was less than €5, the you could surely claim it was 3 gifts of €20 each.

Per revenue guidelines above, nothing would apply to the first two gifts, it would only apply to the third note. Might reduce the charge by a tenner or so.

blade1

https://www.boards.ie/discussion/comment/121745109#Comment_121745109

Doubt they fall for that unless there was 3 birthday cards.

blackbox

I'm not certain that it applies to cash as you are going to pay VAT on whatever you buy with the money.

thomas 123

https://www.boards.ie/discussion/comment/121745147#Comment_121745147

Boggles my mind to think there is someone inside the depot taking out colourful birthday cards off the line and slapping customs duties and VAT on them.

Sarn

I think someone in an post is over interpreting the word ‘gift’. You don’t get charged VAT or duty on cash. Given the sum of money involved, if it was sent electronically or gifted in another country and brought back there would be nothing payable.

Ronney

I'm guessing the sender filled out a customs declaration stating the package contained a gift worth €60

Surely the below would be the case? (Taken from previous post)

You can receive a gift without payment of Customs Duty and Value-Added Tax (VAT) if:

• the gift has been sent from a private individual outside the European Union (EU) to a private individual within the EU

Brexit...the gift that keeps on giving..

con747

Let them return it and have it sent to him electronically the robbing bastards. Out of principle if nothing else.

kabakuyu

https://www.boards.ie/discussion/comment/121745059#Comment_121745059

Waiting for details from sender, I assume a declaration was filled out, it would be unbelievable that someone is opening birthdays cards/personal mail in Customs/Post, would it even be legal to do that?

blade1

https://www.boards.ie/discussion/comment/121745359#Comment_121745359

Letters don't usually get checked so surely was declared.

Crazy sending money in an envelope anyway.

kabakuyu

https://www.boards.ie/discussion/comment/121745254#Comment_121745254

I am waiting for details from sender but there is phone no. for disputing charges,like yourself I have never heard of VAT on cash.

kabakuyu

https://www.boards.ie/discussion/comment/121745430#Comment_121745430

Elderly relatives do it all the time.The mistake was declaring it.(if that was the reason it was impounded)

blade1

https://www.boards.ie/discussion/comment/121745453#Comment_121745453

Oh I know, they aren't alone.

Just passes through too many hands and all it takes is one dishonest person

davetherave

Do people not think it is possible that it is all automated and based off the declaration of the contents to the PO in the UK that is picked up when it gets scanned at An Post Mail Centre rather than people in the Dublin Mail Centre plucking the bright yellow or blue cards off the sorting ling that goes through 1,000,000 letters a week?

blade1

https://www.boards.ie/discussion/comment/121745626#Comment_121745626

That would be the gist of it alright I'd say.

dam099

It doesnt really make sense. By all accounts An Post are using the electronic declarations to charge (based on TARIC codes).

Unless a random TARIC code was selected by mistake I am not sure there is such a thing as a code for cash and even if there is there is no VAT rate applicable to cash it is not a good or service. An Post should not be just applying 23% to the value of a package, some items sent may be 0% or 13.5% items and charged accordingly.

kabakuyu

Talked to sender, card was sent by Royal mail international tracked post, customs declaration was attached stating contents was 60E.

The letter from an post looks for VAT of 16.73E only, no import or excise duty.

I will contact them monday to try to straighten it out, as far as I know there is no VAT due on cash given as a gift.

whiterebel

Choice of sending it by post and it would get "lost" or send it tracked and declare it. Be interesting to see if there is a Taric for cash gifts.

MOD: I'll move this into the main VAT/Duty thread, when we have a resolution.

kabakuyu

To finish this up, I could not get through to an Post to query charges, waited 23 mins before I gave up.Web chat just gave a generic response that charges had to be paid by such a date.

In the end the sender was able to request that card and cash be sent back to them.I am still none the wiser as to the VAT status of cash gifts sent in the post from outside the EU.

BTW An post described the contents as card and money, so they knew it was cash.

whiterebel

I have a feeling they would be covered under chapter 71 of the TARIC

7118Coin :   (TN701)

7118 10-  

Coin (other than gold coin), not being legal tender 

7118 90-  

Other 

711890000 would probably cover legal tender.

JVince

You can be near 100% certain that it was the person in the UK post office that made the error.

The system is entirely electronic and most likely put the taric code in above post.

An post system simply calculated based on the info entered on the system