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Taxing my prize?

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  • 24-03-2011 3:06pm
    #1
    Finite
    Closed Accounts Posts: 17 ✭


    I recently won a facebook competition for shoes.
    They came from the states.

    I was so glad I got free shoes!
    Save money etc

    Anyway a few weeks later I got the bill for fedex for pretty much damn near the price of the shoes? ..Is that legit?..
    If so are there exemptions to the rule?

    I am furious as I obviously wouldn't have entered if I thought I would get stung like this.

    Any advice is appreciated


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    #2
    Paulw
    Registered Users Posts: 13,381 ✭✭✭✭Paulw


    Finite wrote: »
    I recently won a facebook competition for shoes.
    They came from the states.

    I was so glad I got free shoes!
    Save money etc

    Anyway a few weeks later I got the bill for fedex for pretty much damn near the price of the shoes? ..Is that legit?..
    If so are there exemptions to the rule?

    I am furious as I obviously wouldn't have entered if I thought I would get stung like this.

    Any advice is appreciated

    You will need to check with the Revenue, but bottom line - you're importing goods from outside the EU, which are liable for duty (and a FedEx admin charge on top).


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    #3
    tricky D
    Closed Accounts Posts: 9,700 ✭✭✭tricky D


    Yup, check with Revenue. They recently stopped clothing I had ordered using promotional points. I replied to them saying the no money had been used to pay for the items and in my case the items were not for sale anywhere for cash so there was no cash value. They sent the package along with no charges. So it might boil down to whether they charge on the basis of cash value, even if you didn't pay cash, or not.


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    #4
    BrianD
    Closed Accounts Posts: 7,221 ✭✭✭BrianD


    The sender probably detailed the value of the goods on the customs label (maybe for insurance). The Revenue would calculate it on this basis.

    BTW just because it's a prize that you won or you got it for free does not mean that it's exempt from customs and excise.

    For example, if you notice that the lotto winnings are tax free. If I won my €12m from boards.ie then the revenue would want to tax it.

    Otherwise we'd all be "winning" stuff abroad!


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    #5
    dudara
    Registered Users Posts: 33,518 ✭✭✭✭dudara


    Ringing the Revenue is probably the best thing to do.


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    #6
    jor el
    Closed Accounts Posts: 16,713 ✭✭✭✭jor el


    A prize would essentially be classed as a gift, and if it's value is over €45 (including the shipping cost) then you are liable to pay VAT, plus a handling fee to the courier operating as a collection agent for Revenue. If the value is over €150, then you are liable to pay import duty too (VAT is also levied on top of the duty amount).

    The value of import duty depends on the item, and different values exist for different types of shoes and where they are manufactured (Chinese leather shoes attract up to 16.5% duty).

    In the end, you will have been billed based on the declared value of the prize. Whatever that was, you can add VAT at 21%, plus about €15 to Fed Ex. IF they are charging too much, then you can query the charge with Fed Ex and/or Revenue.


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    #7
    Finite
    Closed Accounts Posts: 17 ✭Finite


    So if it's valued under 45 euro I don't pay? (possibly) ..I'm not actually sure of the price as it was a new product release at the time, it might be.

    The whole thinking was to get something for free that I couldn't afford to buy. I was under the impression gifts were exempt, and yes I know we would all be winning stuff abroad but I did actually win (Honest!). I have the facebook page to prove it etcera.

    Just kind of miffed... robbed the whole joy of winning (or do I mean losing?!?)


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    #8
    slimjimmc
    Registered Users Posts: 7,786 ✭✭✭slimjimmc


    Finite wrote: »
    So if it's valued under 45 euro I don't pay? (possibly) ..I'm not actually sure of the price as it was a new product release at the time, it might be.

    The whole thinking was to get something for free that I couldn't afford to buy. I was under the impression gifts were exempt, and yes I know we would all be winning stuff abroad but I did actually win (Honest!). I have the facebook page to prove it etcera.

    Just kind of miffed... robbed the whole joy of winning (or do I mean losing?!?)
    I think customs duty is based on the total value of the items + shipping, not just on the value of the items alone.


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    #9
    jor el
    Closed Accounts Posts: 16,713 ✭✭✭✭jor el


    Finite wrote: »
    So if it's valued under 45 euro I don't pay? (possibly)

    Yes, but the value includes the cost of the delivery. If the shoes are valued at €40, but the delivery cost €20, then the total is €60, and you would be liable for VAT. The delivery should have had a value stated on it, and if you don't have the delivery docket, then you should see the value stated on the bill you just received.
    Finite wrote: »
    I was under the impression gifts were exempt,

    No, only to a value of €45.


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    #10
    BrianD
    Closed Accounts Posts: 7,221 ✭✭✭BrianD


    The Revenue leaflet does state that there are some unspecified exceptions that you need to contact them about.

    Might be worth giving them a bell.


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