Importing from outside the EU into Ireland; two questions

Lord TSC

Howdy guys and gals,

Long story short, there's a specific toy that I've been selling really well over the last few months, but my regular suppliers in UK and Germany have ran out now. I'm looking round and have found some suppliers in USA and Australia. I have never imported in from outside the EU before, but am researching about doing so now.

(I'll preface the following by saying I am reading through other topics on here, but am finding it confusing at times, hence why I'm asking now...)

From what I gather, I have to pay import duty and VAT on items coming in from outside of the EU. If I'm reading right, it's about 4-5% duty, and 23% VAT on the specific type of goods I'm importing, based on the combined item cost & shipping costs. So here's my questions.

I'm VAT registered. Does that mean I'll be able to reclaim back any VAT I incur on imports into the country? Honestly, I feel stupid, I hadn't even thought about this until a few days back and the increased prices coming in had been putting me off. It makes things way, way more attractive if I can reclaim the VAT back.

Typically, if the wholesaler I use arranges the shipping, will it simply be a case of whoever delivers it asks me to pay them at the door? That the driver with my box will present me with some form of bill that I have to pay? I've read about people having goods held up in customs, or being forced to pay massive costs while their goods wallow in warehouses. What way, typically, does that work?

Thanks guys. As I said, I've not really researched it much before now because I was worried about costs, so want to be as educated as possible before I start ordering stuff in.

quinney123

Hi Lord

My name is Adam and i work for a large multinational freight forwarder with over 10 years experience in importation of goods into the EU.

Your shipper will provide a tariff/commodity code which when given to revenue here in Ireland will decipher the amount of duty that is applicable. VAT is payable at 23%

Vat Can be claimed back if you are VAT registered and you can prove that VAT was paid. Generally the Customs paperwork (SAD) will suffice in this instance.

In regards to your payment of duty/vat your chosen agent will raise a customs entry based on the commercial invoice provided by the shipper which will incorporate the tariff code in most instances. Once the customs entry is processed we will work out the amount of duty/vat based on your commercial invoice and you will need to pay this prior to customs releasing your goods. Once the due amount is paid customs will release the goods and the agent will be able to deliver as and when you require.

Thanks
Adam

Dirac98

Hi
It really depends on the volume of goods, value and method of import. For example if the goods come into the country with DHL, they will arrange clearance and either ring you when the goods are ready to be cleared for card payment etc or may even collect payment on delivery as you say, depending on value.
Obviously containers etc will go through the process Quinney described.

quinney123

Dirac98 wrote: »

Hi
It really depends on the volume of goods, value and method of import. For example if the goods come into the country with DHL, they will arrange clearance and either ring you when the goods are ready to be cleared for card payment etc or may even collect payment on delivery as you say, depending on value.
Obviously containers etc will go through the process Quinney described.

Dirac is spot on here if it is small volumes a courier will work as the agent clearing the goods and duty/vat is due upon delivery as amounts are normally quite small. Anything that is larger pallets upwards would be handled by a freight forwarder and the process i mentioned would be in affect.

Lord TSC

Hey, thanks for the replies.

At the moment, I'm talking maybe €500 of smaller toys; collectable card games, some board games, the odd plush toy. Nowhere near pallet or larger. Yet :P