The VAT Man Cometh

Hey all

I ordered an eyepiece from the US, it duly arrived this morning, along with a bill for VAT and import duties for €45.69: angry:. The value of the eyepiece was approximately €160, therefore I paid an extra 30% or so.

I have ordered many items from the States over the years and I've never been charged extra, one eyepiece arrived before Christmas and there was no charge, are the government making 2010 the year of screwing more out of non EU purchases? Talking to the chap who delivered he said that the government is desperate for the money and are clamping down big time, he thinks the limit for tax is now only about €30.

It will make me more reluctant to order from America in future, I don't know the ins and outs of the American postal system, but I wonder if the sender can put a lower value for the item on the form? Maybe it's not allowed.

It just means that a cheaper market for goods is now been made more exprensive.

Makes you mad doesn't it.: angry:

Paul

Thats a pain alright!!

I got a skyscout and a few bits and bobs form yank land and thankfully didnt get stung even though the declared valued was accurate. The value is also to do with insurance I believe.

I honestly think its just luck! BUT can I ask did it come by Fedex? I got some stuff shipped over from the states by fedex a few months ago and that came with a VAT bill but I managed to bluff out of it!

Anytime I am looking at ebay I make sure fedex isnt mentioned!!

Graham

Thats why I always ask for everything to be sent via USPS who interface with An Post when the package arrives over here. You have a chance of getting away without customs/Vat that why but are guaranteed to be charged customs and Vat by DHL, Fedex etc

I had thought that even the USPS/An Post window had been closed though. I had heard that they had expanded their customs facility and now had the ability to process every single package rather than just a percentage which is how it used to be. I also assumed that with the government desparate for every penny that they would definately be checking every package.

Thats why I was so suprised and very very happy when my Servocat and SkyCommander got through in October and I wasn't hit for the €300+ Customs and Vat on the €1300 worth of gear.

My Sky-Fi wifi-serial doodad worth €150 also made it through just after Christmas without getting caught.

It lucks like there is still a chance of stuff getting through unmolested and that the luck of the draw still applies.

The package came via USPS, so it looks like that USPS/AnPost route might be closed.

I think that this new thinking came in with the new year and it will be interesting to hear what experiences anyone else has. Is there anyone out there who is waiting for a package from the States? If so I would like to hear how that went.

Paul

I've had stuff from the US delivered both by courier and An Post. I've been asked to pay Duty and VAT by both the courier and An Post. On the odd occasion, An Post have not charged but the courier always does. The courier also charges a "fee" for reimbursing Customs and Excise (C&E) on your behalf. They are more closely linked with C&E and I think that's why you'll always pay if you choose a courier.

However, do understand that certainly the couriers will redress any damage issues etc though up 'til now I've never had any loss or damge issues. I'm not sure that An Post or USPS will do the same. Given the two will probably blame each other, you'll fall between two stools and could get nothing. But luckiliy I've not been through that so that's an assumption on my part.

As regards Duty and VAT - you are duty bound to pay it. Its a tax. Tax evasion is illegal. That said, if you are lucky enough not to be asked to pay it, then that's a bonus.

I always factor in that I will have to pay it - if I don't end up[ paying it, I take Fiona out for dinner with my "proceeds". That way I'm never disappointed and I gain extra spousal purchase points for future spending

My experience of Customs and Excise (based on coenversations with couriers) is that the volume of goods coming in (especially in the Celtic Tiger era) precluded checking every single package. Hence they targeted high value goods first and then any goods coming in from known areas with a certain "profile". But presumably the volume of goods-in has decreased and they are now targetting lower value goods because they have the time to do so.

Other than the seemingly unfair add-on charges that you have to pay, what really gets me is that you actually pay Duty on the shipping and packing costs. Then you pay VAT on that plus the value of the goods. Tax on tax. That, to me, is the really unfair bit...

One other word of warning - duty and VAT is payable on *services* too (e.g. repair and maintenance). Not only goods...

Fundamentally, its the luck of the draw, so do as I do. Assume the worst and pray for the best

Dave

p.s Graham - how on earth did you bluff out of paying VAT with FedEx? If it is due, they cannot give you the package without getting the payment. AFAIK, that would be illegal...

p.p.s. beware of asking the vendor to put a low value on the item. It is illegal. If you need to claim for damages/lost items, they will never pay more than the *declared* value - if any...

Paul,

You were lucky to get so many items through the net without getting charged.

As I understand it, it is calculated as follows:
(Item Value + Postage Cost) x 1.045 x 1.21

1.045 is optical goods tax rate (4.5%)
1.21 is VAT rate (21%)

As it is also applied to the postage cost, expensive courier charges can add more taxes to the bill.

Also, some courier companies are cashing in on it.
They check the value on the package and pay the taxes on your behalf to customs directly "to save you the hassel and speed up delivery".
When you pay the courier company the money they are due, they add an administration fee of approx 10euro for the privilage!
So, it's in their interest that you get nabbed.

Michael.