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New Import Duty/VAT Thread. Read Post #1 for Rules

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  • Registered Users Posts: 11,215 ✭✭✭✭Suckit


    You can ring them and ask them where are they getting the custom fees from. It is possible they used their infamous :pac: volumetric calculator if the shipping cost wasn't marked clearly on the item.
    Then you could point out to them that it falls under the negligent fees threshold even when shipping is included. You may have to contact the seller to prove shipping cost. I used to do that first, so it ws ready when I rang them.

    I have found when dealing with them in the past, if you can point out to them and prove that it is an incorrect charge, before they have attempted to deliver it, they usually waive it, or amend any charges. Otherwise it will be up to you to chase down any refund from revenue, and you won't get back DHL handling fees.


  • Registered Users Posts: 1,563 ✭✭✭Wing126


    Is there some sort of ELI5 on how to figure out how to calculate customs?

    I really do not understand what I'm doing when using the TARIC website.


  • Registered Users Posts: 3,666 ✭✭✭mondeo


    I'm buying a watch from china for $80 on ebay... how much would I expect to pay for customs if any ?

    Thanks


  • Moderators, Business & Finance Moderators, Sports Moderators Posts: 14,832 Mod ✭✭✭✭whiterebel


    MOD: See Post 1.


  • Registered Users Posts: 7,006 ✭✭✭witnessmenow


    I got something from China that I paid $108 for, this was after a $15 discount.

    When I got the bill from DHL they said that customs was to be VAT at the full amount, $123, as customs do not consider discounts. Is this right? The invoice from the seller does break it down as

    Goods = x
    Shipping = y
    Discount = -$15

    Total = $108

    I paid $108 via paypal


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  • Registered Users Posts: 11,215 ✭✭✭✭Suckit


    I got something from China that I paid $108 for, this was after a $15 discount.

    When I got the bill from DHL they said that customs was to be VAT at the full amount, $123, as customs do not consider discounts. Is this right? The invoice from the seller does break it down as

    Goods = x
    Shipping = y
    Discount = -$15

    Total = $108

    I paid $108 via paypal


    I have never heard that customs do not consider discounts, it could be true, but the far more likely would be that the value of something is what you paid for it. So if you have a receipt and the price/value is marked clearly on the package, then that is the price of it.

    But the seller having written it like that on the invoice may not have helped.

    Email them with the receipt of the price you paid and maybe ask the seller to send you a receipt with the same. DHL will always go for the highest possible price.


  • Registered Users Posts: 3,739 ✭✭✭scamalert


    this used to be large case with arrow.com, when they ran discount deals on raspberry pi's costing under 25e, but full price would been 30ish, and many getting massive inflated invoices from DHL,fedex. anyway email your paypal invoice to them, or even ask seller to to the same, and to re calculate of it, as seems usual practice by them.


  • Registered Users Posts: 7,006 ✭✭✭witnessmenow


    Suckit wrote: »
    I have never heard that customs do not consider discounts, it could be true, but the far more likely would be that the value of something is what you paid for it. So if you have a receipt and the price/value is marked clearly on the package, then that is the price of it.

    But the seller having written it like that on the invoice may not have helped.

    Email them with the receipt of the price you paid and maybe ask the seller to send you a receipt with the same. DHL will always go for the highest possible price.

    I rang DHL and she had the exact invoice and said about discount thing. I needed the package sooner rather than later so I just paid the extra couple of euro.

    Does anyone know a contact in customs who I can get clarification on this if it arises in the future?


  • Registered Users Posts: 11,215 ✭✭✭✭Suckit


    I rang DHL and she had the exact invoice and said about discount thing. I needed the package sooner rather than later so I just paid the extra couple of euro.

    Does anyone know a contact in customs who I can get clarification on this if it arises in the future?


    Here is the number 01 738 3676 - https://www.revenue.ie/en/contact-us/customs-ports-and-airports/customs-division.aspx


    you could appeal it here - https://www.revenue.ie/en/customs-traders-and-agents/customs-appeals/index.aspx


  • Moderators, Business & Finance Moderators, Sports Moderators Posts: 14,832 Mod ✭✭✭✭whiterebel




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  • Registered Users Posts: 826 ✭✭✭j14


    My post is similar to one a few posts above.
    I buy from a website in the US and they have a rewards programme (think of Tesco Club points that you can build up and then use against a purchase).
    I ordered an item for €250 plus €40 shipping.
    There was a promotion on the site for free shipping that I availed of and I also used €100 worth of points to bring the total paid to the company €150 on my credit card.
    I was charged duty on the full value of €290 (€250 plus €40 shipping).
    I was told customs do not recognise free shipping promotions as and I quote, "the company had to pay something to shop it to you".
    Was this a correct charge?
    The invoice showed the full amount and the discounts applied but customs were not interested in talking to me and only wanted payment on the full €290.


  • Registered Users Posts: 40,151 ✭✭✭✭ohnonotgmail


    j14 wrote: »
    My post is similar to one a few posts above.
    I buy from a website in the US and they have a rewards programme (think of Tesco Club points that you can build up and then use against a purchase).
    I ordered an item for €250 plus €40 shipping.
    There was a promotion on the site for free shipping that I availed of and I also used €100 worth of points to bring the total paid to the company €150 on my credit card.
    I was charged duty on the full value of €290 (€250 plus €40 shipping).
    I was told customs do not recognise free shipping promotions as and I quote, "the company had to pay something to shop it to you".
    Was this a correct charge?
    The invoice showed the full amount and the discounts applied but customs were not interested in talking to me and only wanted payment on the full €290.

    whatever about the free shipping they are correct that they €100 worth of points being irrelevant when it comes to vat and duty. vat and duty is applied on the value of the goods imported. the goods you imported had a value of €250 so you pay vat and duty on that.


  • Registered Users Posts: 513 ✭✭✭waterfaerie


    I have a few orders coming and have a few questions I hope someone can answer.

    1. I'm expecting some things to come with An Post that might have customs charges. Does the postman carry a card machine or do I need to keep some cash around?

    2. I just had something stopped by DHL asking for proof of purchase as they thought the seller had undervalued it. I provided them with the proof and had to pay before the parcel was delivered. I've seen a lot of threads around about them doing that. I'm wondering how that compares to the other couriers? What is the procedure if something like that happens with a courier like fedex who usually bill after the fact?

    3. I was horrified to find that DHL charge a percentage based fee for processing the customs. I knew they charge a fee on top of the actual VAT but I can't understand how they can charge a percentage since the value of the goods makes no difference to the amount of work they need to do. My order wasn't affected as it was small so I just paid the flat rate but it annoyed me when I read that they charge a percentage for higher value parcels. Can they get away with that?

    4. Does anyone have a list of the different rates / fees that the different couriers charge for this "service" or can we create one here so shoppers can see them before selecting a courier? DHL's fee is €14.50 or 2.5% of the customs charge, whichever is higher.

    5. Finally, is it possible to deal with customs directly and pay anything due in advance of the parcel arriving so that the couriers can't rob you with their administration fees? My recent order was approximately €30 including shipping, so approximately €7 was due in VAT but I had to pay over €21 to DHL.

    Thanks if you can answer any of these.


  • Registered Users Posts: 40,151 ✭✭✭✭ohnonotgmail


    I have a few orders coming and have a few questions I hope someone can answer.

    1. I'm expecting some things to come with An Post that might have customs charges. Does the postman carry a card machine or do I need to keep some cash around?

    2. I just had something stopped by DHL asking for proof of purchase as they thought the seller had undervalued it. I provided them with the proof and had to pay before the parcel was delivered. I've seen a lot of threads around about them doing that. I'm wondering how that compares to the other couriers? What is the procedure if something like that happens with a courier like fedex who usually bill after the fact?

    3. I was horrified to find that DHL charge a percentage based fee for processing the customs. I knew they charge a fee on top of the actual VAT but I can't understand how they can charge a percentage since the value of the goods makes no difference to the amount of work they need to do. My order wasn't affected as it was small so I just paid the flat rate but it annoyed me when I read that they charge a percentage for higher value parcels. Can they get away with that?

    4. Does anyone have a list of the different rates / fees that the different couriers charge for this "service" or can we create one here so shoppers can see them before selecting a courier? DHL's fee is €14.50 or 2.5% of the customs charge, whichever is higher.

    5. Finally, is it possible to deal with customs directly and pay anything due in advance of the parcel arriving so that the couriers can't rob you with their administration fees? My recent order was approximately €30 including shipping, so approximately €7 was due in VAT but I had to pay over €21 to DHL.

    Thanks if you can answer any of these.

    1. Cash only. and they dont carry change

    2. They send you a bill for what customs thinks it is worth and then you argue the toss with them.

    3. Never paid more than the standard charge and i have never heard of a personal import being charged more. Are you sure the charges you were looking at were not business customers?

    5. Not that i know of. and those figures look way off.


  • Registered Users Posts: 513 ✭✭✭waterfaerie


    Are you sure the charges you were looking at were not business customers?

    Fairly sure. Here's the document.
    those figures look way off.

    In what way do they look way off? 23% of €30 is €6.90. €6.90 VAT + €14.50 DHL fee = €21.40


  • Registered Users Posts: 40,151 ✭✭✭✭ohnonotgmail


    Fairly sure. Here's the document.

    Perhaps you can quote the section of that document you are referring to. Its a big document. It also seems to be targetted at people sending parcels.


  • Registered Users Posts: 513 ✭✭✭waterfaerie


    I just use search to find what I'm looking for in a large document but it's on page 9. under Customs Services.


  • Moderators, Business & Finance Moderators, Sports Moderators Posts: 14,832 Mod ✭✭✭✭whiterebel


    The couriers outlay the VAT and/or duty on your behalf, hence the charge based on value, with a minimum. They are fairly reasonable on customs clearance charges compared to some specialist companies who charge €40/50 per single line import entry.


  • Registered Users Posts: 3,212 ✭✭✭DECEiFER


    Hi all. A friend has sent over a gift from the US, which is in transit, started to pass through Customs in Portlaoise yesterday lunchtime and has an "ITEM IN DEPOT" status as of earlier this evening. I have a feeling Customs are going to charge me (the value is way over the threshold for VAT). It will be duty-free as it's a computer component, but in terms of the value for VAT calculation, the item was bought on Amazon.com and I'm told the state sales tax was already paid on it. So my question is, if I got a copy of the invoice for Customs from my friend, would they then assess the VAT based on the pre-sales tax value or is the full value after tax (paid in the US) what they'd use? If it's the latter, I'll keep my mouth shut as I believe declared value on the package is $10 less than the price paid with tax, as he just slapped a rounded down to the nearest 100 value on the declaration.

    He assumed wrongly that marking it as a gift would make it exempt, otherwise it probably would have worked out better to purchase it within the EU. I would have assumed the same, to be honest. There goes any ideas of using Amazon.com instead of .co.uk to get items for less shipped through him, which I had been considering. You live and learn...

    Plus, I'd love to know their currency conversion rates. I presume An Post would show up with a complete breakdown for every cent of what would be charged?


  • Registered Users Posts: 7,515 ✭✭✭sniper_samurai


    DECEiFER wrote: »
    Hi all. A friend has sent over a gift from the US, which is in transit, started to pass through Customs in Portlaoise yesterday lunchtime and has an "ITEM IN DEPOT" status as of earlier this evening. I have a feeling Customs are going to charge me (the value is way over the threshold for VAT). It will be duty-free as it's a computer component, but in terms of the value for VAT calculation, the item was bought on Amazon.com and I'm told the state sales tax was already paid on it. So my question is, if I got a copy of the invoice for Customs from my friend, would they then assess the VAT based on the pre-sales tax value or is the full value after tax (paid in the US) what they'd use? If it's the latter, I'll keep my mouth shut as I believe declared value on the package is $10 less than the price paid with tax, as he just slapped a rounded down to the nearest 100 value on the declaration.

    He assumed wrongly that marking it as a gift would make it exempt, otherwise it probably would have worked out better to purchase it within the EU. I would have assumed the same, to be honest. There goes any ideas of using Amazon.com instead of .co.uk to get items for less shipped through him, which I had been considering. You live and learn...

    Plus, I'd love to know their currency conversion rates. I presume An Post would show up with a complete breakdown for every cent of what would be charged?

    An Post will charge you the VAT on the item, including shipping cost if declared, plus €10.

    If buying from Amazon US you are much better off buying directly, or in this case having your friend ship it directly as you pre-pay the vat charge avoiding the extra €10 An Post fee. Amazon will refund the customs charge if no fee was applied upon entry.


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  • Registered Users Posts: 3,212 ✭✭✭DECEiFER


    An Post will charge you the VAT on the item, including shipping cost if declared, plus €10.

    If buying from Amazon US you are much better off buying directly, or in this case having your friend ship it directly as you pre-pay the vat charge avoiding the extra €10 An Post fee. Amazon will refund the customs charge if no fee was applied upon entry.
    Excellent advice - thank you.

    Do you happen to know if Customs would use the pre-sales tax (US) value or include the sales tax for the VAT calculation?


  • Registered Users Posts: 11,215 ✭✭✭✭Suckit


    https://www.revenue.ie/en/importing-vehicles-duty-free-allowances/gifts-and-consignments-of-low-value/what-rate-of-customs-duty-is-charged-on-gift-consignments.aspx
    What rate of Customs Duty is charged on gift consignments?

    If the total value of your gift consignment does not exceed €700, a flat rate of 2.5% Customs Duty may be applied. This flat rate applies to Customs Duty only, not to Value-Added Tax (VAT) or Excise Duty. In calculating whether the €700 limit is exceeded, the following should be excluded:
    • the value of any individual item(s) which qualify under the €45 gift relief allowance
    • the value of any items not subject to Customs Duty
    • and
    • the value of tobacco products.
    The importer may choose to have the goods charged at the normal rate of Customs Duty that applies.
    If the total value of your gift consignment exceeds €700, the ‘normal’ rates of Customs Duty will apply to each item in the consignment.


  • Moderators, Business & Finance Moderators, Sports Moderators Posts: 14,832 Mod ✭✭✭✭whiterebel


    DECEiFER wrote: »
    Excellent advice - thank you.

    Do you happen to know if Customs would use the pre-sales tax (US) value or include the sales tax for the VAT calculation?

    Mod: if you intend to import again, please read through the first post in this thread, and the forum charter. Thanks


  • Registered Users Posts: 904 ✭✭✭styron


    A heads up that as of next January all 'third county' (ie. non-EU) consignments are due to be liable for 23% import VAT:
    The plan appears to be that non-EU sites are to collect and forward the appropriate VAT to each State on all (non-excise) transactions under €150
    with Customs declarations no longer required.

    • Sales of goods B2C from outside the EU into the EU (imports)
    Besides being extended to EU-international sales, MOSS will also be implemented for certain B2C imports. It will apply for products not subject to excise duties with a value of less than EUR 150 per import. Such imports will be taxed at the rate of the Member State of the customer.
    Consequently, the existing VAT exemption for consignments with a value of less than EUR 22 will be abolished. While EU businesses have to apply VAT regardless of the value of the goods sold, imported goods can currently still benefit from this VAT exemption. The EU claims that import values are often underdeclared for the purpose of avoiding the tax. The removal of the exemption is hence also an action to combat VAT fraud.
    In the case of imported goods subject to excise duties or with a value exceeding EUR 150, a full customs declaration will still be required.
    • Electronic marketplaces
    As of 1 January 2021, electronic marketplaces including platforms or portals that facilitate either intracommunity distance sales by businesses not established in the EU, or facilitate distance sales of goods imported into the EU with a value not exceeding EUR 150, will be liable to pay VAT in the Member State where the customer is located. According to the new VAT rules, such marketplaces will be deemed commissionaires who have bought and now sell the products traded on their platforms.


    https://blog.kpmg.ch/tax-legal-news/new-eu-vat-system-digital-economy-2019-2021/


  • Moderators, Business & Finance Moderators, Sports Moderators Posts: 14,832 Mod ✭✭✭✭whiterebel


    Just an update on Customs Clearance charges for FedEx: From 1st January the charge to pay out VAT/Duty and do the customs entry will be 2.5% of the amount paid out, with a €15 Minimum, up from the previous €12.50.


  • Registered Users Posts: 683 ✭✭✭Sam the Sham


    In the past, I've found An Post's enforcement of duties/VAT on small parcels/packets to be virtually non-existent. I don't usually order anything from outside the EU but on those occasions when I did, I found that small items that had values on the customs form that were clearly above €26 (but below €150) were not being charged VAT. Note, I'm not saying that this state of affairs was desirable, just that I often wondered whether I had somehow misunderstood some portion of what was, to me, pretty arcane law regarding duties and tariffs on which information was hard to find. I once waded through the TARIC database and couldn't find anything of use to me to determine a simple duty rate.

    I now get the distinct impression from one delivery received this week (a wallet from the US, not from Amazon) that this may be changing, as it was worth a total of $60 or so and the postman came to me asking for €20 and change (cash, of course) in duties, VAT, and An Post's administrative fee. (As per post #1 in this thread: I am most certainly not asking anyone to calculate these charges for me; I assume that whatever the postman was asking for was accurate).

    Has something changed recently (perhaps in the new year) or am I just clueless about how any of this works? Probably the latter, I freely admit.


  • Registered Users Posts: 40,151 ✭✭✭✭ohnonotgmail


    In my experience it depends where the parcel is coming from. If it is something from china they dont tend to bother. I think the volume is too much for them. For stuff from the US i find they look for the VAT more often.


  • Registered Users Posts: 7,515 ✭✭✭sniper_samurai


    In the past, I've found An Post's enforcement of duties/VAT on small parcels/packets to be virtually non-existent. I don't usually order anything from outside the EU but on those occasions when I did, I found that small items that had values on the customs form that were clearly above €26 (but below €150) were not being charged VAT. Note, I'm not saying that this state of affairs was desirable, just that I often wondered whether I had somehow misunderstood some portion of what was, to me, pretty arcane law regarding duties and tariffs on which information was hard to find. I once waded through the TARIC database and couldn't find anything of use to me to determine a simple duty rate.

    I now get the distinct impression from one delivery received this week (a wallet from the US, not from Amazon) that this may be changing, as it was worth a total of $60 or so and the postman came to me asking for €20 and change (cash, of course) in duties, VAT, and An Post's administrative fee. (As per post #1 in this thread: I am most certainly not asking anyone to calculate these charges for me; I assume that whatever the postman was asking for was accurate).

    Has something changed recently (perhaps in the new year) or am I just clueless about how any of this works? Probably the latter, I freely admit.

    Not really. It is hit or miss whether customs grabs it from the normal post, but I find there is usually a significantly higher chance of packages having customs charges November-January for the Christmas/Sales period.


  • Registered Users Posts: 11,215 ✭✭✭✭Suckit


    Often items from China are marked at a lower price or take an indirect route to your postal address to try and avoid fees. Channel Islands of do the same.
    I haven't ever received an item from the States without having to pay, unless tariffs were prepaid.


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  • Registered Users Posts: 7,006 ✭✭✭witnessmenow


    I just made an order of electronic components from China this morning, and I have a question about the future VAT bill I will get

    The goods were $310 , Shipping is valued at $127 , but it was free because I spent over $300 on goods. Summary of receipt below

    501248.png

    Am I liable for the tax on the shipping? The amount I paid was $310. The discount on shipping is a general offer and is not specific to me.

    Goods are to be delivered by Fedex

    Thanks


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