importing goods for sale from China taxes and charges

niallerf

Registered User
Messages
3
Hi,
I'm planning to import some goods from China and I'm wondering what hidden costs I'm missing. Rough figures below

Total cost of goods from supplier including shipping, freight and insurance to Dublin port: €2905
Add Duty at 12%: 3253.60
Add Vat on total at 23%: €4002
I will then need to pay freight, insurance fees and delivery from Dublin port. Weight of goods on pallet will be 1400kg. I haven't shopped around yet but I'm budgeting €500. Total door to door is now €4500

I plan to sell the goods for roughly €9000. So, wondering what I am liable for on that amount. I know I will have to pay 12.5% corp tax on the €4500 profit which will be €562. This is a secondary income for me. Is PAYE due on the entire amount? Anything else? I will be paying for it all though my limited company so should be able to claim all VAT back on same.

thanks
Niall
 

Monte2014

Registered User
Messages
30
I'm curious to know what you are importing or do you want to divulge all after the goods are sold!
 

Ciru75

Frequent Poster
Messages
74
Assuming your company is VAT registered, you can claim back the import VAT but you'll have to charge VAT on the sale as well.

Assuming that your €9,000 sale price is VAT exclusive, your profit is €5,248 because you can reclaim the import VAT. If you pay yourself that as a salary, there's no corporation tax to pay because the company hasn't made a profit now. The company will have to deduct PAYE, USC and PRSI on the salary.
 

USADualCitizen

New Member
Messages
3
Your probably missing the Dublin port charges
Roughly how much would this be for this particular item of 1 pallet weighting 1400kg do you know?

Is the cost calculated now as (Purchase Price + Import Duty) * (1 + VAT Rate Applicable) + (Port Fees * 1.23) ?
 
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