Customs question

I believe the allowance is €150, if the item is worth less than that you are off the hook. Quite how the value is determined I don't know.

Yes shipping and insurance costs also attract the full VAT rate of 23% when you're importing anything.

The €150 refers to the value you can import duty free.

Here's the scoop. As others have pointed out, €150 is the threshold for duty not VAT, sorry that my previous post was misleading.
https://www.revenue.ie/en/importing-vehicles-duty-free-allowances/buying-of-goods-online-for-personal-use/buying-goods-from-outside-the-eu.aspx

vandriver wrote: »

Check your maths.Tis wrong.

It is?

Thought I paid a lot, that's the official bill I paid COD.

On a related note: my understanding is that if I buy a watch while on holiday in US I can claim tax back as I leave, but may have to pay tax in Ireland on my return. Is there any way to claim tax back on items bought online from US? Otherwise are you paying twice, there and here? Or is US/state tax simply not added when you purchase online?

I bought a Seiko and a g shock from creation watches two weeks ago.Total value was €181 and customs charged €69.20

ELV1897 wrote: »

On a related note: my understanding is that if I buy a watch while on holiday in US I can claim tax back as I leave, but may have to pay tax in Ireland on my return. Is there any way to claim tax back on items bought online from US? Otherwise are you paying twice, there and here? Or is US/state tax simply not added when you purchase online?

There are multiple questions in your post above so I'll take each in turn (though this is an online forum and as my signature states you should not take the above as definitive legal advice - if you want to retain me for my tax law advice you're welcome to do so however )

1. Can you claim VAT/sales tax back from non-EU purchases?

Some (most?) countries (Ireland/UK/Canada/S. Africa etc.) allow you to claim your VAT/GST/equivalent sales tax back for exported goods. Non-EU shoppers in Ireland can claim their VAT back directly from Revenue (the slightly more laborious manner) or use a tax refund company "Premier Tax Free"/"Global Tax refund" etc. (which skims an admin charge for providing the service).

The US does not provide for this - why? Ask the US government

2. Do you need to pay VAT/duty on purchases that you made abroad and brought back to Ireland?

https://www.revenue.ie/en/importing-vehicles-duty-free-allowances/customs-information-for-travelling-and-duty-free-allowances/travelling-from-outside-the-eu/duty-free-allowances.aspx

Per the above €430 is the duty/tax free limit - so buying a $20 tommy hilfiger shirt at a NY outlet is fine to bring back without paying Irish tax - buying 30 shirts isn't and by law you need to walk through the red customs declaration channel and pay the required amount.

Keep in mind - this is an allowance for bringing goods back - not buying a good and having it shipped from NY to you - then the €22 VAT threshold and €150 duty threshold applies. However - due to the Revenue stating that they will not pursue any VAT amount lower than €6 it means that effectively the VAT/tax free limit is €26 (using 23% VAT rate)
see page 8 of Revenue's guide here: https://www.revenue.ie/en/customs-traders-and-agents/documents/guide-to-importing-goods-through-the-post.pdf

This covers cheap goods from China for example - you can get a lot of tack for €26

3. Do you need to pay GST/VAT/state sales tax on US purchases?

No - if you buy a product in person in a particular state you will pay its state sales taxes - this varies from state to state - Delaware for example has a "VAT" rate of 0% (it's kinda like the Cayman islands/Dubai of the US - 8.7% corporation tax, income tax rates of 2.2-6.75%).

But if you don't want to buy your watches in Delaware (because who wants to go to Delaware? :pac:) then you can take advantage of distance selling rules - if you buy a watch from a Floridian store and have it sent to NY then Florida's sales tax is not applied (nor is the one for NY btw).

This only works if the store does not have a branch in NY as well - so chain stores are no good. Most stores do deliver to hotel addresses so it's up to you if 1) you have the time to wait for a package and 2) you find it worthwhile to save on the 7-8%(ish) of sales tax by buying out of state and having it shipped to you while on holiday.

Some less reputable stores are known to ship empty boxes to other states (letting customers walk off with their purchase in person) - but that's tax evasion and illegal.

4. Hopefully that clears up tax for you somewhat
It means that when you buy a seiko 5 from a Floridian store off eBay they aren't adding in the 7% Floridian sales tax (unless you are shipping to a Floridian address). You may be liable to 23% VAT and extra duty once it arrives in Ireland however.

If you had bought the same Seiko 5 from their brick and mortar store in Florida you would be paying the 7%, but when you wear it back to Ireland unless it is a really expensive Seiko 5 (you got ripped off buddy ) - then it falls under the €430 limit and will not be taxed at Dublin airport. This is providing you didn't also buy a €10,000 diamond ring on the trip - then both the watch and ring will be liable to Irish tax.

The most tax efficient thing would be to buy it online but have it sent to your NY holiday hotel address - so no 7% Floridian tax, and when you wear it home there's no Irish tax to be paid either. But only if you're already going to be in the US on holiday





Again - all of the above are the ramblings of an online madman and should not be taken as advice from a tax lawyer. But if you want me to type this out to you in a letter with headed notepaper I'm more than happy for you to pay for that privilege :pac: