Charged VAT on order from US

Crea

Hi,
I got some lectures on CD from a company in the US. I just got a VAT invoice from the freight agent. I thought there was no VAT charged from the US.
Can anyone advise me on this? I've checked the revenue site but it's hard to decipher.

Beano

you are incorrect. VAT is charged on goods arriving from outside the EU. Import duty can also be charged depending on the goods. Whoever delivers the goods also charges you a handling fee for collecting this money.

JoeB-

Yes, VAT can be charged but is often charged incorrectly (in my opinion).

VAT should be charged on the value of the goods and the value of the delivery to the EU border... but I have been charged VAT which is greater than 21% of the value of goods + total delivery + duty charges... this can't be right in my opinion but what can you do??? :mad:

On the other hand I have often not been charged at all... he he he.

I don't know whether VAT should be charged on the duty, probably not, it would seem to be a double whammy.

VAT should also not be charged on some goods, like books or gifts... possibly not educational supplies either, you'd have to check it.

I reckon that once the charge is raised you will have to pay it before they will release the goods... very unlucky.

Joe

Bob the Builder

The company should(if a respectable one) refund you that money. Did you use DHL?

Ruu_Old

What method of delivery was it? I don't think you'll get a refund tbh as VAT is charged on items delivered from outside the EU.

Beano

nevf wrote:

The company should(if a respectable one) refund you that money. Did you use DHL?

I'm curious as to why you think they should refund you the cost of the VAT?

ircoha

Beano wrote:

I'm curious as to why you think they should refund you the cost of the VAT?

So am I.

They dont call it VAT at the point of entry for nothing. Thats why there is no exemption for VAT on condoms:)

The VAT exemptions re books and kids shoes etc as I u/stand it only apply for sales within Ireland.

The VAT is charged on the duty just like VAT is charged on VRT on cars.

mcaul

VAT is charged on the landed price in Ireland (or any EU country). Similarly sales tax is charged in the USA based on the state in which the product is delivered.


Take for example a pair of Jeans. Cost $100 in USA.

Shipping = $20

Sub total = $120
Duty = 8% $9.96 (duty rates vary from product to product)

Sub total = $129.96


Vat is charged on the $129.96

In addition, freight companies can charge an administration/declaration fee - normally approx. €40 but rarely on small items as these are all declared on a single manifest.

If the item has a value of under $50 and goes through the normal postal system, it is rarely subject to VAT because of the paperwork invloved just aint worth it for the tax authorities. (This is why CD wow and other such companies send CD's out singly even when you buy 5 / 6 at the same time.)

Hotblack Desiato

JoeBallantine wrote:

I don't know whether VAT should be charged on the duty, probably not, it would seem to be a double whammy.

AFAIK VAT is always charged on the price including duty

That's how it works on excise duty on petrol and drink, anyway, and I think VRT is the same.

jjbrien

Just a qucik question if you say to the shipping comany that you will pay the vat directly to the revenue instead of the collectors can they still force you to pay if you the the revenue yourself?

Crea

Hi all, thanks for the replies.
I got on to the freight company as the VAT seemed to be alot more than the cost of the goods. The invoice only mention VAT and their handling charge but even with duty at 8% the invoice is still much higher.
They said a member of their accounts would call me back in 2 hours - that was 2 days ago. I've received the goods so the freight company must have already paid. I will pay them once I get a breakdown of their charges.
I have to say that their handling charge on the VAT is higher than the actual shipping charge from the US:(

mel123

Anytime i got charged VAT on goods i ordered from Strawberrynet they credited me back for the goods, but this is only because they are nice people, they dont have to do this

Ruu_Old

jjbrien wrote:

Just a qucik question if you say to the shipping comany that you will pay the vat directly to the revenue instead of the collectors can they still force you to pay if you the the revenue yourself?

You have to pay when the item is delivered, almost 100% sure on this.

mcaul

Crea wrote:

Hi all, thanks for the replies.
I got on to the freight company as the VAT seemed to be alot more than the cost of the goods. The invoice only mention VAT and their handling charge but even with duty at 8% the invoice is still much higher.
They said a member of their accounts would call me back in 2 hours - that was 2 days ago. I've received the goods so the freight company must have already paid. I will pay them once I get a breakdown of their charges.
I have to say that their handling charge on the VAT is higher than the actual shipping charge from the US:(

This is nearly always the case with small shipments - handling charges currently seem to be €60 - €80. But if you have a shipment of €100,000 it is still 60-€80.

Fedex & UPS don't have handling charges as they use bulk entry procedures, so while their shipping charges are a bit higher you'll save the handling charges.