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

rubadub

leaveiton wrote: »

I do have a question about something that the Revenue site says:

The section you quoted is from the section on gifts and items of negligible value, your item is not either of these and it is fraud to describe it as such so most companies will refuse.

You will not be charged duty, the price is usually show on the outside, if not they can open it and examine invoices to get the price, or they can make up their own or contact you for receipts to prove what you paid. e.g. an ipod declared at €10 is not going to make it through, a dress is harder to price so they might contact you for receipts, in the past mates of mine handed in paypal receipts.

The handling fee can vary between carriers, if it was sent standard US mail USPS then it will be charged by an post and I think this is about €6. Couriers tend to charge more.

leaveiton

rubadub wrote: »

The section you quoted is from the section on gifts and items of negligible value, your item is not either of these and it is fraud to describe it as such so most companies will refuse.

You will not be charged duty, the price is usually show on the outside, if not they can open it and examine invoices to get the price, or they can make up their own or contact you for receipts to prove what you paid. e.g. an ipod declared at €10 is not going to make it through, a dress is harder to price so they might contact you for receipts, in the past mates of mine handed in paypal receipts.

The handling fee can vary between carriers, if it was sent standard US mail USPS then it will be charged by an post and I think this is about €6. Couriers tend to charge more.

Oh, okay, thank you! Sorry, I was clearly getting mixed up, I thought that "negligible value" meant anything under €150. Thanks very much for answering!

Kylo Ren

RUDOLF289 wrote: »

As Jor El suggests you need to have a look at the breakdown of the bill you received. On the basis of the value indicated you are looking at 50%, which does not seem right (even allowing for an administrative charge levied by FEDEX themselves).

There is an appeals process, if not with FEDEX then with customs directly. Get all the facts and paperwork and in the 1st instance talk to FEDEX. You may need the paypall or credit card receipt to proof you only paid $ 202.49 including delivery/postage.

Cheers,
Rudolf289

The bill saids:

Disbursements out of the scope of EU VAT - EUR 63.61
Clearance Administration Charge Vatable at 21% - EUR 10.00
Other Charges Vatable at 21% - EUR 0.00
Other Charges Vatable at 0% - EUR 0.00
VAT at 21% - EUR 2.10

Total - EUR 75.71

Cheers for all your help guys. I'm only 18 and this is all a bit overwhelming!
Really appreciated.

leaveiton

Just wondering about actually paying VAT charges. I've read through the thread, but where the actual payment comes in, and how it's made, is leaving me confused. Do they send you a bill, or do they just ask for payment when your parcel is delivered? Does it vary? If you are sent a bill, where is it coming from, and how do you deal with it? Might be stupid questions, and I'm sorry if they are, but I just don't quite understand the actual payment!

RUDOLF289

Keno 92 wrote: »

The bill saids:

Disbursements out of the scope of EU VAT - EUR 63.61
Clearance Administration Charge Vatable at 21% - EUR 10.00
Other Charges Vatable at 21% - EUR 0.00
Other Charges Vatable at 0% - EUR 0.00
VAT at 21% - EUR 2.10

Total - EUR 75.71

Cheers for all your help guys. I'm only 18 and this is all a bit overwhelming!
Really appreciated.

Hello Keno92

You need to ask FEDEX what "Disbursements out of scope of EU VAT" means and how this charge has been calculated. The term is too vague to be able to judge what it is for and if it can be justified.

Also, you might point out that anything to do with customs clearance, according to the VAT guide is not subject to VAT. So the € 2.10 they have charged you is not correct.

Sorry for kicking the ball back in your court ......

Cheers,
Rudolf289

RUDOLF289

leaveiton wrote: »

Just wondering about actually paying VAT charges. I've read through the thread, but where the actual payment comes in, and how it's made, is leaving me confused. Do they send you a bill, or do they just ask for payment when your parcel is delivered? Does it vary? If you are sent a bill, where is it coming from, and how do you deal with it? Might be stupid questions, and I'm sorry if they are, but I just don't quite understand the actual payment!

Hello Leaviton,

where I come from there is no such thing as a stupid question, only stupid answers!

If a shipment arrives by post or through a commercial carrier such as DHL, TNT, UPS, FEDEX etc, the shipment may require customs processing. That depends on the value of the shipment (as outlined at the start of the thread). If the shipment is subject to duty or VAT, the carrier/An Post will make a customs declaration and they - in the first instance - are liable for the Duty or VAT and settle this with customs. On delivery they would look for the charges from you.

Hope this clarifies the issue for you, however feel free to post again if you require any further information.

Cheers,
Rudolf289

jor el

leaveiton wrote: »

Do they send you a bill, or do they just ask for payment when your parcel is delivered? Does it vary?

It does depend on the carrier, and varies a bit. An Post will look for the money up front before letting you have the delivery. Couriers like FedEx tend to bill later, which can be annoying because you won't know how much it's for until some time later.

geoffrie1

Say if i buy goods from ebayer A
another good from ebayer B
and one more from ebayer c

do customs combine the price off the three things? and charge vat?

rubadub

geoffrie1 wrote: »

do customs combine the price off the three things? and charge vat?

No, however if they all came from the same supplier it might make a difference, but I have yet to hear of any reports of being charged on multiples. Revenue's site talks of "consignments", and I am not sure if 10 packages from the same place might be added up -if they wanted.

In the past I have ordered and got 3 packages on the same day from the same seller in jersey, he had free post so I ordered separately, all under €22, but combined was well over €22 (or €45 for that matter), and I was not charged.

Zimmerframe

What duty would be on a watch from Switzerland valued at €350 ?

leaveiton

jor el wrote: »

It does depend on the carrier, and varies a bit. An Post will look for the money up front before letting you have the delivery. Couriers like FedEx tend to bill later, which can be annoying because you won't know how much it's for until some time later.

The order will be coming with UPS, so they might bill. If they do, how do I go about paying the bill?

jor el

They will tell you how to pay it.

Fluorescence

I'm scratching my head and fuming over this one, hope someone can help me figure it out.

I ordered a cheapo mp3 player off an american site a few days ago. It cost $34 and an extra $22 to ship with UPS (altogether came to about €40). They tried to deliver today but failed (despite my being at home all day to meet them :rolleyes:), and on the slip they left in the letterbox it says I owe them €25.67 ("no change" handwritten underneath). I'm trying to figure out how the hell they came up with that considering I've paid delivery already (not to mention the mp3 itself didn't even cost that much so customs have gone to shít if that's what it is...).


Can anyone tell me how they worked out such an extortionate fee for a very very cheap product???

EDIT: I should probably mention it's only a very small package and weighs a measly half-pound (yes, half a POUND).

jor el

Thread merged with Duty and VAT thread, since that's what this is going to be.

You need to ask UPS how they calculated the charges. At a guess though, $66 = €42. 21% VAT is €8.82, plus handling fee of €15 makes €23.82, which isn't far off what they've charged you.

Fluorescence

"Handling fee"? What a load of crap. Never using UPS again, <removed>

Thanks for the reply

jor el

If you wish to make defamatory comments about a company or person, do not do it on this site.

The handling fee is something ALL couriers and delivery companies apply when calculating VAT and duty.

Fluorescence

Sorry, I just got frustrated with all these mysterious charges they seemed to pull out of nowhere.

Hi

Hoping somebody can help me with this query:

Can my VAT registered company claim back vat on items bought from play.com under the value of €22?
I Spoke to a play.com rep and they said that all items shipped to Ireland include vat of 21% on the price, so shouldn't I be able to claim that back? Anyone able to shed some light on this?

Cheers

Gamesnash.ie: Pat

Grace Stocky Shuffleboard wrote: »

Hi

Hoping somebody can help me with this query:

Can my VAT registered company claim back vat on items bought from play.com under the value of €22?
I Spoke to a play.com rep and they said that all items shipped to Ireland include vat of 21% on the price, so shouldn't I be able to claim that back? Anyone able to shed some light on this?

Cheers

I stand to be corrected but I believe that this is wrong. As far as I know their prices in euro to Ireland and indeed anywhere else outside of the UK do not include VAT - you should find if searching here people who have had packages stopped for VAT when shipped from play (they usually ship from Jersey - outside of the EU)

They do have an agreement with the UK revenue which clears all play.com packages as being duty paid etc but this is for the UK only.

Normally when buying from a VAT registered business outside of Ireland you would provide a VAT number to them and be invoiced without VAT for your goods. This is the way you would claim VAT back as such. This doesn't happen with play.com.

rubadub

Grace Stocky Shuffleboard wrote: »

so shouldn't I be able to claim that back? Anyone able to shed some light on this?

First off it would have to be for business use, so a plumber getting a PS3 game and claiming back VAT is fraud.

Gamesnash.ie: Pat wrote: »

I stand to be corrected but I believe that this is wrong.

I thought so too. If it was the likes of amazon then they are shipping from within the EU and are above the €35,000 limit so do pay Irish VAT, but since play are outside the EU I see no reason why they would pay Irish VAT.

As said plenty of people have been caught for VAT from play. However I do recall a mate getting a sweatshirt which was well over the limit and it appeared to come from the UK, so perhaps play have got a UK based centre in which case they could well be paying Irish VAT if over the 35K limit.

rubadub

rubadub wrote: »

First off it would have to be for business use, so a plumber getting a PS3 game and claiming back VAT is fraud.

I thought so too. If it was the likes of amazon then they are shipping from within the EU and are above the €35,000 limit so do pay Irish VAT, but since play are outside the EU I see no reason why they would pay Irish VAT.

As said plenty of people have been caught for VAT from play. However I do recall a mate getting a sweatshirt which was well over the limit and it appeared to come from the UK, so perhaps play have got a UK based centre in which case they could well be paying Irish VAT if over the 35K limit.

It would be for genuine business use.

Have spoken to another rep and he hadn't a clue, perhaps the first rep was just telling me what I wanted to hear. I will have to investigate a bit further. thanks for the speedy replies guys, much appreciated.

jor el

If Play.com were registered for VAT in Ireland, and charging 21% VAT on items valued under €22, then they would also be charging VAT on items over €22, and anyone buying expensive items from Play would never be caught for VAT on delivery. Since this is not the case, I can only conclude that Play.com are 100% NOT charging VAT on purchases, therefore there is nothing for your business to reclaim.

The first rep was either clueless, or just telling you what you wanted to hear in order to get rid of you.

0verblood

hey guys, do I have to pay any vat or duty on textiles? I want to bring about 20 scarves back in my luggage from Kenya, they're just plain aul scarves.

mmille24

How do you value used electronics?

If something is being sent as a gift, isn't it up to the sender to determine the price of the item?

Say a used iPad. What's stopping the sender from putting a value of 50 dollars?

jor el

mmille24 wrote: »

Say a used iPad. What's stopping the sender from putting a value of 50 dollars?

That would be a lie, and a false declaration on the customs form. You can't just decide on an arbitrary value for something, you put what it's actual value is.

If it's something you are buying, then it's not a gift either.

mmille24

jor el wrote: »

That would be a lie, and a false declaration on the customs form. You can't just decide on an arbitrary value for something, you put what it's actual value is.

How would that be a lie? How are you going to legally determine the exact value of a used item? All used items aren't the same. A used item could be worth more to one person than another.

jor el wrote: »

If it's something you are buying, then it's not a gift either.

I wouldn't be purchasing it. It would be a gift.

rubadub

There have been posts where people were charged duty on dealextreme purchases, all of which are declared as $10. I have heard customs can pick the current market value of a product here, however I cannot find anything on the revenue.ie site about under valued items.

I know of 2 people who had to send in a paypal receipt for a nintendo DS which had a low value listed.

jor el

mmille24 wrote: »

How would that be a lie? How are you going to legally determine the exact value of a used item? All used items aren't the same.

To use your example of an iPad, then an iPad is worth a lot more than $50. If you want to put a false (lower) value on a customs declaration, then that would be a lie. What you pay for it is largely irrelevant anyway, as Customs officials can and will value something for themselves if it looks any way suspicious. Being a used item does not mean that it will be valued below it's retail value.

If someone is sending you a gift, then you will have no invoice to show value, nor will you be able to prove what they paid for it. If someone is sending you an iPad, then you can expect to pay VAT at it's full retail price. Customs are not going to believe or accept a valuation of $50 on that.

mmille24

jor el wrote: »

To use your example of an iPad, then an iPad is worth a lot more than $50. If you want to put a false (lower) value on a customs declaration, then that would be a lie. What you pay for it is largely irrelevant anyway, as Customs officials can and will value something for themselves if it looks any way suspicious.

So if an item looks suspicious they can declare whatever value they want? That's interesting.

You seem to be equating having a lower valuation on something to lying. You have a pretty liberal use of the word. If you thought a used iPad is valued at 600 dollars, and I think it's valued at 450, I'd be lying?

jor el wrote: »

Being a used item does not mean that it will be valued below it's retail value.

So then the value declared has to be the retail value of an item?

rubadub

Found the one page on revenue.ie

http://www.revenue.ie/en/customs/leaflets/pn1882.html

2. General points to note about shopping over the Internet or from mail order catalogues

There are some general points which anyone contemplating a purchase over the Internet or from a mail order catalogue should bear in mind, as follows:

1. you need to be aware of the potential full price of the goods involved since some websites do not make allowance for charges such as Customs Duty, Excise Duty or VAT;
2. some websites state that they can misdeclare or undervalue the goods as a way of avoiding charges. Clearly, this is illegal and purchasers should bear in mind that they, as the importer of the goods, have legal responsibility for ensuring the accuracy of information provided on the declaration by the seller and ensuring that the correct payments are made; and
3. in all cases involving purchases over the Internet or from a mail order catalogue, the carrier imposes a handling charge for processing the goods through Customs. Although this handling charge is collected with the Duties payable it is not a Customs charge. As these handling charges may vary, intending purchasers should establish in advance what the precise amount will be – for example, by asking the seller what rates are charged by various carriers.

It is really going to be at their discretion, a €50 ipad, no hope, €450 -probably might. It would have to be vague enough rules,

this is also from revenue.ie and though it says not applied to imports I expect they would take a similar approach

− Open market price is the price that the goods or services in question
might reasonably be expected to fetch on the open market. This
applies to goods, services and intra-Community acquisitions. Note
that it does not apply to imports, where customs rules apply – see
section 53.
− Open market value is the arm’s length consideration for the goods and
services. If there is no comparable supply, the open market value is
not less than the purchase price/cost to the supplier.

I think I have read in the past of people being charged on legitimate prizes.

mmille24 wrote: »

So if an item looks suspicious they can declare whatever value they want?

If they didn't then loads of people would be at it.