Group buying items in bulk - legal/tax implications?

the_amazing_raisin

Hi folks,

I've a bit of a madcap idea which is likely unworkable for a number of reasons, but I'd like to check one of those reasons

I was thinking of ordering a pallet of solar panels from some sellers in Europe. Typically they are much cheaper than Irish sellers

Since they tend to offer bulk discounts, the plan would be to get a group of interested buyers together and make a single large purchase of panels to get the maximum discount

We'd then get them shipped to someone's house in Ireland (let's say mine) and divide them up according to however many panels each individual bought

Since they'd be going to my house in this example, I would likely be the one making the purchase and paying. Each member of the group would pay me their share of what they bought in advance of the purchase from the seller

Obviously there would have to be a lot of trust involved, however the price each individual pays would be the cost of what they bought plus some portion of the shipping costs

In other words, I wouldn't be making any money from this. I'd be a pretty terrible businessman I guess

My question is, would I then be viewed as a business reselling goods instead of a private individual? And would there be additional legal or tax concerns as a result?

thomas 123

https://www.boards.ie/discussion/2058351830/group-buying-items-in-bulk-legal-tax-implications

Depending on the amount of course - I think you are likely not going to attract the attention of revenue. You will be charged tax at the port of entry and the goods will not be released till that tax is paid/ or the delivery company will demand payment before delivery.

I would say its not a business venture at all and you should be grand - but I am not an accountant so could be wrong.

Edit - If its in the EU should be even easier, no tax on imports.

the_amazing_raisin

https://www.boards.ie/discussion/comment/122142991#Comment_122142991

Yeah my worry is because they big expensive items then they're more likely to attract attention

It's a bit hard to hide a bunch of solar panels after all 😅

I wouldn't be trying to hide anything and would ensure I've an adequate paper trail detailing the group purchase

It'd be more about avoiding the hassle in the first place

Perhaps it isn't such a madcap idea after all 😁

hello2020

Interesting thought.. keep us posted here as some boardies may like to join if discounts r great

Donald Trump

There will invariably be some messer and some messing.

You'd want to be building some kind of margin in to protect yourself against all that.

Will you be held responsible if there is an issue with the panels?

Kaisr Sose

If you buy from EU and don't sell them for profit, I don't see how there is an issue other than having to pay VAT at 23% on inport. Even that may be difficult to do if the supplier has no Irish VAR No and you are not registered for VAT to self declare for the difference between VAT paid in country of origin.

Have you thought everything through?

Do you have a supplier in mind?

Will they sell direct to you?

Shipping a pallet of solar panels would require a lot of insurance (fragile goods)

Would they require specialised handling ?

I have seen pallets coming from EU and they can be very shabby on arrival due to multiple loading and unloading enroute.

the_amazing_raisin

https://www.boards.ie/discussion/comment/122143530#Comment_122143530

Will do, but it is still in the madcap plan stage so I won't be doing any purchases soon

the_amazing_raisin

https://www.boards.ie/discussion/comment/122143562#Comment_122143562

Regrettably true, I'd be very careful about who's in the group and be clear about payment upfront

For safety it would probably be a good idea to write up some rules for the group before everyone commits. For example how the panels are divided up, what checks are done and what happens if there's an issue