Importing Products into Ireland: Advice on Customs and VAT?

blobert

Hello there,

I'm reseaching some different business plans at the moment, one of which involves importing products from outide the EU (China and the US) and selling them here.

I'm having trouble finding out about Customs and VAT rates for businesses however, I've just spent the last hour looking around the revenue.ie website but am none the wiser.

Now I know that if I personally were to buy a laptop from the US, I the customer would get charged customs duty when this item arrived in Ireland and possibly Vat also.

What I'm looking to find out is whether businesses have to pay customs and Vat on all items they import. If so do you have any idea of the rates involved, like I said I had no joy on the website. The items involved will be either electrical goods or medical supplies (vitamins, suplements etc).

Any advice would be much appreciated.

Zynks

In short, the answer is yes and yes: you (company) will pay import duties and VAT. Only that you will pass VAT on to your customers, so it isn't a cost, just a cash flow issue for your business plan. However, excise will have a direct impact on your pricing and costs.

Excise duties vary according to country of origin and there are lots of variations, according to international treaties and so on. The information you are giving isn't enough even to start checking.

On the electrics side, check carefully compliance and certification requirements. On the vitamins and other products for human consumption, I would spend more time checking legal aspects and requirements before anything else.

Anyway, on the VAT and excise, use the site below to check the Taric code for the products you have in mind:
http://europa.eu.int/comm/taxation_customs/dds/en/tarhome.htm

Then go here and find the excise applicable:
http://europa.eu.int/comm/taxation_customs/dds/cgi-bin/tarchap?Lang=EN

That will give you am idea of where you stand...

blobert

Thanks for the info Zynks, I really appreciate your help.

Having had a look at the links you gave, I'm a bit confused, it seems as though very few products are subject to excise. This of course is a good thing if it's true.

For example lets say I want to import digital cameras from the US to sell here:

The TARIC code for digital cameras seems to be: 8525400000 so when I enter this and the US as the origin country I get the following info:

TARIC code 8525400000
Country of origin/destination United States of America - US (400)
Description
No restrictions

Import

Supplementary unit import : p/st
Airworthiness tariff suspension : 0 %

It seems as though there is no exise payable on this product then, unless I am mistaken.

In fact pretty much any combo of product and country seems to produce similar results, does this mean the majority of products can be imported excise-free? Seems too good to be true?


Incidently can anyone tell me what the vat rate on imports is, does it vary too?

Thanks again.

BuffyBot

You really would be best contacting you local Revenue office, maybe arranging for a chat with one of the folks there that specialises in VAT/Duties.

Eru

What you pay depends on where and what your bringing in. Revenue have a 'big green book of revenue' that you can buy but I recommend using the CD because its a lot easier.
For example, certain timber products from the states are free as is certain furniture items from China.

In addition to this a company can apply for special status (Cant think of the form name now) that allows you to avoid paying even though you should. This is when your deaang with a designated trade country (IE 3d world).

Its messy so you should get the CD first its only 40 odd euro for it and about a 10 for every update.

then of course you need a customs clearance agent, its not essential but by far the best method as they know customs inside out.

Computers and parts from America would not qualify for any allowances and there is duty payable, around 4% I think but its been a few years since I worked in customs clearance.

Can recommend a good company if U want and also the ones to avoid. BTW, I dont work in that business anymore in case Im accused of advertising.

mt101

Can anyone tell me if it is possible to take advantage of our membership in the eu to use lower rates of tax in different countries. eg: switzerland has a VAT rate of 7.6% so in theory could i import a container of goods from outside the eu into swz, pay the vat to them and then drive my container of goods into ireland??
i failed to get someone to answer this question when i rang my local tax department! amazing, any links or advice would be hugely appreciated..

whiskeyman

mt101 wrote:

Can anyone tell me if it is possible to take advantage of our membership in the eu to use lower rates of tax in different countries. eg: switzerland has a VAT rate of 7.6% so in theory could i import a container of goods from outside the eu into swz, pay the vat to them and then drive my container of goods into ireland??
i failed to get someone to answer this question when i rang my local tax department! amazing, any links or advice would be hugely appreciated..

Switzerland is not a member state of the EU...

GP

Karlitosway1978 wrote:

Can recommend a good company if U want and also the ones to avoid. BTW, I dont work in that business anymore in case Im accused of advertising.

can you send me a few company links?

I am working with one but am not 100% happy. Not pro-active enough.

antoinolachtnai

And no, you can't do that trick you mentioned.

My experience with (small) imports was that I didn't have to pay the VAT up-front because I was VAT registered. You charge VAT at the point of sale, not the point of purchase.

For a consumer transaction, yes, you could probably do this in practice, but I can't see it really being worth your while. The cost of repacking and shipping would be greater than the saving. You would be unlikely to get caught, but it would certainly be illegal.

onedmc

antoinolachtnai wrote:

And no, you can't do that trick you mentioned.

My experience with (small) imports was that I didn't have to pay the VAT up-front because I was VAT registered. You charge VAT at the point of sale, not the point of purchase.

For a consumer transaction, yes, you could probably do this in practice, but I can't see it really being worth your while. The cost of repacking and shipping would be greater than the saving. You would be unlikely to get caught, but it would certainly be illegal.

As a VAT registered business - when you import from outside the EU you pay VAT and then reclaim it. When you import from EU then no VAT is paid

dbyrne

Vat though is payable on the goods in ireland, e.g. If you import from the uk, you supply them with your irish VAt number and a declaration that the goods are for export from the uk (some companies dont bother with this). The 17% VAT on the goods is not payable in the uk, if applicable, then the goods arrive in you lovely warehouse in Cork, you get your invoice and copy it. The copy of your invoice is sent to the Interstat (think that is what it is) and you sell your goods + the 0, 13.5% or 21% VAT which is applicable. Dont forget some goods have different VAT levels and also just because a product in the UK, again for example, does not have VAT that doesnt mean that here it doesnt have VAT.

Eru

You must pay VAT in the last point of entry not the first. If its too be sold in Ireland its VAT payable in Ireland. what your suggesting is illegal.

Most products land in the EU prior to hitting Ireland anyway. PLaces such as Holland.

antoinolachtnai

onedmc wrote:

As a VAT registered business - when you import from outside the EU you pay VAT and then reclaim it. When you import from EU then no VAT is paid

I am just saying what happens in real life.

onedmc

Karlitosway1978 wrote:

You must pay VAT in the last point of entry not the first. If its too be sold in Ireland its VAT payable in Ireland. what your suggesting is illegal.

Most products land in the EU prior to hitting Ireland anyway. PLaces such as Holland.

This is a confusing statement.

When I import from a SUPPLIER China and the States I pay VAT on entry to Ireland. Even though the containers come via Holland - FACT - that is what I do. That then becomes a positive balance (- number) on my VAT account with the revenue. As I change my customer VAT, I set that off against that balance.

When I import from a SUPPLIER in holland I dont pay VAT and it dosn't matter when that product originated.

As for import duty very few items are rated above 0% but somtimes there are QUOTAs which are worse coz your items get stuck until the next QUOTA becomes available. Very few items have quotos, this has only happened to me with silk cushons.