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Drop Shipping and Import Tax/Duty

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  • 29-08-2011 4:27pm
    #1
    creative100
    Closed Accounts Posts: 61 ✭✭


    Hello all,

    I have a question.

    I want to set up a small business and have a supplier in America but I'd rather Britain.

    What if a consumer buys something from my website, will they be taxed when it comes to Ireland?

    Thanks


Comments

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    #2
    TylerIE
    Registered Users Posts: 1,635 ✭✭✭TylerIE


    creative100 wrote: »
    Hello all,

    I have a question.

    I want to set up a small business and have a supplier in America but I'd rather Britain.

    What if a consumer buys something from my website, will they be taxed when it comes to Ireland?

    Thanks


    If it comes from America its possible / quite likely that VAT + an admin charge will be levied. If you are having your items sent from the US to the UK its highly likely the packages will attract UK VAT.

    Anything sent by USPS may be inspected by customs. If its insured it will almost certainly require the recipient to pay tax on delivery. If its bigger than maybe a shoebox it will probably attract more attention than a padded envelope.

    If it comes from the UK no, there will be no duty when it gets to Ireland, as the UK is withing the EU.


  • Options
    #3
    creative100
    Closed Accounts Posts: 61 ✭✭creative100


    TylerIE wrote: »
    creative100 wrote: »
    Hello all,

    I have a question.

    I want to set up a small business and have a supplier in America but I'd rather Britain.

    What if a consumer buys something from my website, will they be taxed when it comes to Ireland?

    Thanks


    If it comes from America its possible / quite likely that VAT + an admin charge will be levied. If you are having your items sent from the US to the UK its highly likely the packages will attract UK VAT.

    Anything sent by USPS may be inspected by customs. If its insured it will almost certainly require the recipient to pay tax on delivery. If its bigger than maybe a shoebox it will probably attract more attention than a padded envelope.

    If it comes from the UK no, there will be no duty when it gets to Ireland, as the UK is withing the EU.


    Thanks so much for clearing that up for me. I guess I need and EU supplier


  • Options
    #4
    TylerIE
    Registered Users Posts: 1,635 ✭✭✭TylerIE


    creative100 wrote: »
    Thanks so much for clearing that up for me. I guess I need and EU supplier

    You could have the items sent to you in bulk, pay the VAT on the price you paid (ie the wholesale cost) and one admin fee, then forward them to your customers. If your VAT registered you could claim the VAT Payment back (that is if you were charging your customers a price incl. VAT).

    However in our current situation I guess we should encourage sourcing from within the EU where possible!!!


  • Options
    #5
    creative100
    Closed Accounts Posts: 61 ✭✭creative100


    TylerIE wrote: »
    creative100 wrote: »
    Thanks so much for clearing that up for me. I guess I need and EU supplier

    You could have the items sent to you in bulk, pay the VAT on the price you paid (ie the wholesale cost) and one admin fee, then forward them to your customers. If your VAT registered you could claim the VAT Payment back (that is if you were charging your customers a price incl. VAT).

    However in our current situation I guess we should encourage sourcing from within the EU where possible!!!

    EU it is. I want to make profit but not rip off customers either! Thank you tyler


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