VAT when Importing

T

turbo123

Registered User
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Hi

I'll be soon awaiting a large shipment of merchandise from China, i've imported before but wasn't set up for VAT as we didnt go over the VAT threshold so we just payed Import Duty and VAT when the goods arrived in Dublin Port.

Now that i have a company set up incl VAT number do i have to pay VAT or can i just give my VAT number or is it the usual Pay and then offset your VAT payed against received......

Thanks
T
 
I import from the UK and Italy and I generally provide the vendor with my VAT details and the goods arrive VAT exempt.

That's been my experience so far... Non EU could be different. I'm very interested in the answer however as I'm about to start dealing with a U.S. company for some stock!
 
PaulyB63 said:
I import from the UK and Italy and I generally provide the vendor with my VAT details and the goods arrive VAT exempt.

That's been my experience so far... Non EU could be different. I'm very interested in the answer however as I'm about to start dealing with a U.S. company for some stock!
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Thats the case for Europe alright but i have a feeling its different for outside the EU / UK
 
The liability for VAT is ultimately supposed to be charged to the end-user and will also depend on what is being sold. If you are the final user then you may be liable for VAT if you are using the goods to sell on or as part of manufacturing you may not. I'd check with Revenue to be precise, they don't bite and actually I have found are quite helpful. Can save surprise headaches.

If a company is selling to direct end-users in Ireland and is over the VAT treshold then my understanding is they should be EU registered.
 
Woodie said:
The liability for VAT is ultimately supposed to be charged to the end-user and will also depend on what is being sold. If you are the final user then you may be liable for VAT if you are using the goods to sell on or as part of manufacturing you may not. I'd check with Revenue to be precise, they don't bite and actually I have found are quite helpful. Can save surprise headaches.

If a company is selling to direct end-users in Ireland and is over the VAT treshold then my understanding is they should be EU registered.
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Good Advice Woodie, i'll give them a buzz.

We're not the end user, we will just selling on product.
 
China is outside the EU so it is different.

You need to register an EORI number with revenue (which is actually just your VAT number with IE before it, but still need to register AFAIK) then claim the VAT back.
 
turbo123 said:
Hi

I'll be soon awaiting a large shipment of merchandise from China, i've imported before but wasn't set up for VAT as we didnt go over the VAT threshold so we just payed Import Duty and VAT when the goods arrived in Dublin Port.

Now that i have a company set up incl VAT number do i have to pay VAT or can i just give my VAT number or is it the usual Pay and then offset your VAT payed against received......

Thanks
T
Click to expand...

Hello Turbo123

Have a look at this recent thread ;
http://www.askaboutmoney.com/showthread.php?t=154127

There is quite a lot of detail in this. There also is a method described that would enable you to eliminate the requirement to pay VAT at the point of entry and then claim it back in your VAT return.

Feel free to contact me if you require any clarification or further information

Cheers,
Rudolf289
 
PaulyB63 said:
I import from the UK and Italy and I generally provide the vendor with my VAT details and the goods arrive VAT exempt.

That's been my experience so far... Non EU could be different. I'm very interested in the answer however as I'm about to start dealing with a U.S. company for some stock!
Click to expand...

Hello PaulyB63

I refer to my post above. Have a look at the thread quoted. Hope that explains the process.

Cheers,
Rudolf289
 
selfassessed said:
China is outside the EU so it is different.

You need to register an EORI number with revenue (which is actually just your VAT number with IE before it, but still need to register AFAIK) then claim the VAT back.
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Hello Selfassessed and other posters importing from outside the EU for the 1st time.

You need to be registered for EORI. Herewith information on EORI and how to go about registration ;Economic Operators' Registration and Identification System (EORI) Background to EORI system

The basic purpose of EORI is to establish a system whereby every trader who interacts with Customs Authorities in any Member State of the EU is allocated a unique reference number. This reference number will be valid throughout the EU and will serve as a common reference number for the trader’s interaction with the Customs Authorities of any Member State. The number will have to be used by traders in all customs declarations with effect from 1 July 2009. It will also be used for the exchange of information between the Customs authorities of the EU, and where appropriate, between Customs and other authorities e.g. statistical authorities. In order to minimise disruption to traders, Revenue has decided to align the EORI number to the VAT number to avoid a situation whereby traders would need to make significant adjustments to their own internal electronic systems.
How does a trader register for EORI?

In Ireland, any trader who has interacted with the AEP system between the introduction of AEP 2 in June 2007 and 30th June 2009 were automatically assigned and issued with an EORI number by Revenue. It is recommended that each trader should review internal systems and discuss this matter with any clearance agent and/or software supplier who currently deals with import/export issues to make sure they are familiar with the new EORI registration system.
eLearning course on EORI

Further information in the form of a short eLearning tool is available to download from the European Commission website


It is necessary for any trader interacting with the AEP system for the first time after the 1st July 2009 to register for EORI. This may be done by contacting their local Revenue office.


For further information please contact [email protected]. Alternatively, you can contact the EORI section by telephone as follows:

  • If you are calling from within the Republic of Ireland - Phone 1890 626364
  • If you are calling from outside the Republic of Ireland - Phone 00 353 6763125
It is my understanding that you can register for EORI by ringing the EORI section. They will ask you a few questions and then confirm the registration by e-mail.

Cheers,
Rudolf289
 
Thanks Rudolf289

I'll it a look at and i'm sure i'll have some questions for you :)

Much appreciated

Rudolf289 said:
Hello Turbo123

Have a look at this recent thread ;
http://www.askaboutmoney.com/showthread.php?t=154127

There is quite a lot of detail in this. There also is a method described that would enable you to eliminate the requirement to pay VAT at the point of entry and then claim it back in your VAT return.

Feel free to contact me if you require any clarification or further information

Cheers,
Rudolf289
Click to expand...
 
Rudolf289 said:
Hello Turbo123

Have a look at this recent thread ;
http://www.askaboutmoney.com/showthread.php?t=154127

There is quite a lot of detail in this. There also is a method described that would enable you to eliminate the requirement to pay VAT at the point of entry and then claim it back in your VAT return.

Feel free to contact me if you require any clarification or further information

Cheers,
Rudolf289
Click to expand...

Am i right in saying from the other thread that if the container isnt full you cant avail of eliminating the requirement to pay VAT ??
 
Hello Turbo 123,

The challenge is that if you ship as Less than Container Load (LCL) / Groupage from China or the USA you are likely to be sharing the container with any number of other consignees. In that case it is not possible to clear only one or some of the shipments at the point of transhipment and not the others. For a whole range of reasons it is simply not possible to clear all shipments under this arrangement at the point of transhipment.

It may be possible to route shipments via Rotterdam and have it discharged there, so it can be cleared, prior to onforwarding to Ireland. My experience however suggests that the charges / freight costs increase to the extend that it might not be attractive to avail of the process to eliminate the VAT at the point of entry.

If I had the detail of the shipment you are looking at, I can do a review and see what the costs are for either a direct option or a transhipment option. Feel free to send me a PM or post again if you want more information.

Obviously if you are the only consignee in the container - even if it is not fully loaded - we can apply the process of eliminating VAT at the point of entry.

Cheers,
Rudolf289
 
Rudolf289 said:
Hello Turbo 123,

The challenge is that if you ship as Less than Container Load (LCL) / Groupage from China or the USA you are likely to be sharing the container with any number of other consignees. In that case it is not possible to clear only one or some of the shipments at the point of transhipment and not the others. For a whole range of reasons it is simply not possible to clear all shipments under this arrangement at the point of transhipment.

It may be possible to route shipments via Rotterdam and have it discharged there, so it can be cleared, prior to onforwarding to Ireland. My experience however suggests that the charges / freight costs increase to the extend that it might not be attractive to avail of the process to eliminate the VAT at the point of entry.

If I had the detail of the shipment you are looking at, I can do a review and see what the costs are for either a direct option or a transhipment option. Feel free to send me a PM or post again if you want more information.

Obviously if you are the only consignee in the container - even if it is not fully loaded - we can apply the process of eliminating VAT at the point of entry.

Cheers,
Rudolf289
Click to expand...


Thanks again

i'll need to get some more info from our manufactures, this year it could be close to a full container.

How many pallets fit in a container?
 
Hello Turbo123

a 20' container would hold 9 standard pallets 120 x 100 cms and 12 euro pallets 120 x 80 cms. In terms of cubic capacity a 20' container would be 32.5 cubic meter. You probably would fit 27 to 28 cbm in a 20'.

a 40' container would hold 22 standard pallets 120 x 100 cms and 25 euro pallets 120 x 80 cms. A 40' standard container would have a cubic capacity of 67 cubic meter (you probably would fit upto 60 cubic meter) a 40' Hi Cube container would hold 76 cubic meter (between 66 and 69 cbm is achievable)

However, most factories in China do not palletise the cargo if you ship container loads.

Cheers,
Rudolf289
 
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