Imports from the US

[cleancar]

Hi all,

I am currently setting up a new company to retail goods imported from the US. I have already checked and these would be taxed at the full 21.5% rate. However, initially this will be a small company with a small turnover, and not clearing the €51k mark making us liable to pay VAT.

My question arises then on VAT when the goods arrive in the country. I understand I will have to pay VAT on the goods at this point, but can this then be claimed back? And in order to claim it back would I have to be registered for VAT, thereby giving up my €51k cushion? (vicious circle or what??)

My other question is that of Duty, I have often heard of import duty when people make personal purchases from the US but does this apply to a business and if so at what rate is duty charged?

Thanks in advance.

 

[Graham_07]

1) On the VAT issue you would pay VAT at point of entry from the U.S. That VAT then becomes part of your purchase cost, just the same as VAT on any goods that you might buy here. You cannot claim that back unless you are registered and as you said, registering while under the threshold would not be sensible at this point. Incidentally the threshold for sale of goods is €75,000, not €51,000.

2) Re the duty, duty is charged at differing rates depending on the goods. That also becomes part of your purchase cost. There is a database of goods where you can check duty rates, its called .

 

[mcaul]

Remember the vat payable at point of entry will be "cost of goods" + "cost of freight" + duty" - vat will be 21.5% of the combined amount.