Charges on USA purchases?

ION

HI all,

First timer.. I know something similiar to this has posted before but it's kinda buggin.

I'm thinking about buying a laptop from the USA. I just like to know what charges are incurred and at what rates. This will be a definite deciding point for me.

I'd like some specifics and any experiences you've all had.

Thanks in advance..

keeaumoku_tofu

Last year I bought $110 worth of clothes from the states that were shipped directly to me here. I got slapped with 56 euro in VAT and customs. The value of the items was written on the customs form and was shipped from the company. Now, if you are having something shipped used or cheap (via ebay or something), the amount you paid can be given on the customs form but the item can be insured for more. My feeling is the VAT on the laptop would negate any savings you think you're getting.

I had a friend in the states buy me things and then ship them separately because gifts under 45 euro don't incur a vat. If you ship back your own personal used goods here from the states there isn't supposed to be a VAT either.

Hope this was helpful.

Specky

If you ship back your own personal used goods here from the states there isn't supposed to be a VAT either.

Hmmm...don't think so. How do you reckon that would work? "Please Mr Customs man, I promise I'll never ever sell this, honest"....yeah right.

VAT applies specifically to consumers (i.e. people who buy things for their own personal use), businesses are just conduits for VAT between consumers and the government of the state in which the product is purchased.

If my business buys something (from anywhere except VAT registered suppliers in other EU states outside Ireland) I have to pay VAT (at the Irish rate) and import duty (where applicable) but I am able to claim back the VAT (from the Irish government). If I then re-sell the item to someone else in Ireland, charging VAT (again at the Irish rate) then I give the VAT I collect on the sale to the Irish government (businesses do not benefit from VAT, the government do however make a profit that is proportional to how much profit we make).

If, on the other hand, I sell the item to another VAT registered business in an EU state (other than Ireland) then I don't charge VAT but the business on the other end of the transaction does (at their own local VAT rate) if/when they resell what they bought from me.

It's really very simple but perhaps a little difficule to explain...

Have a poke around on www.revenue.ie there's lots there that'll tell you the rules.

There is both VAT and import duty on many items brought in from outside the EU, including electronic goods so you'll probably find that these coupled with the carriage, couple with the fact you can't just take the item back if there's a problem with it combine to make the whole prospect of buying from the states rather unattractive.

The americans bitch about this all the time, complaining that they don't get a fair opportunity to compete on the European market...but we don't get a fair opportunity to compete over there 'cos they all think European manufactured stuff is crap.

Ah well...

PhilipMarlowe

In the bit you quoted, he mentioned used goods... presumably meaning if you were moving, you could bring your stuff with you, subject to certain restrictions.
Like owning a Harley for 6 months and then shipping it home without tax implications and stuff.

mfield

I have ordered ALOT of different items from the US over the past few years and have only been stung once for duty. The time that I did get stung the package was sent via UPS. Every other time anything has been sent it has been sent via United State Postal Service and I have never once got stung when shipped via this method. I also, where I can, ask the sender to mark the package as a gift.
Maybe it's just luck that I have not been caught more often, but I have received goods of sizeable value from the US, saving quite a few quid showing the risk has paid off!

mfield.

Specky

My apologies, I missread the post. Of course, you don't have to pay VAT or duty on used goods as the sales tax has already been paid when you bought the goods at the original point of sale.

There are indeed restrictions on how long you have to own the goods prior to import and you need to produce proof of purchase to back this up.

I'm not sure how far you can stretch the "gift" point, and the amount of poking around customs do has increased a lot over the last two years.

We even have problems with equipment sent from the US for the purposes of demonstration, they still want to see a valid sales invoice for an appropriate amount accompanying the goods. Just a couple of weeks ago we had just such an event where equipment that was sent to us free of charge from the US got stuck in customs here. The shipper then sent across an invoice for $50 just to make up the paper trail, but customs still wouldn't release the goods because they knew what was being sent was worth more than $50!! The shipper eventually had to send a full invoice for the full amount to get the goods out of the airport even though the paperwork clearly stated that it was for demonstration only and not for re-sale.

ION

Hello again,

Well the laptop will cost around €2800, so i'm guessing the whole package with customs + VAT etc might be around €3300??

Would I be on the right track?

Cheers 4 da replies..

JP

keeaumoku_tofu

I have a feeling the VAT, customs and whatever other taxes/service charges they hit you with will probably be much higher than 500 euro, but that's just a feeling and not based on any research.

I paid the $56 on a package shipped via the USPS but remember the customs form was marked as merchandise. My mother sends me tons of stuff via USPS, marks it as a gift and I have never had a problem with it. (The customs people probably know it's a mom package when they read the customs slip, which usually reads, "Underwear, curry mix, seaweed soup mix, bra and socks.")

I also get tons of packages via FedEx from a friend who gets a 75% discount on fedex and sends me gift packages consisting of hurricane popcorn, nori, zines, used Martha Stewart mags, and other stuff, of which most is of negligible monetary value. She always marks it gift and gives an honest breakdown on the contents, which is always under $45. Still, FedEx sends me invoices months after the package arrives, I respond it's a gift and the wait for the next package with the knowledge the next cycle will begin.

ION

I guess at 25% it would be about 700,

I damn well hope it wouldn't be much more than that.. Well anyway I think I'll ring customs and find out about their rates on equipment of the this price.. Basically it's a serious weapon of a machine that you can't even get over here, so if the cost is a bit high I think I'll give it a go any who..

Cheers anyways..

ION