Hello Hamstermind,
the two previous posters are spot on with their advice. This is from the official VAT guide 2008 as issued by the Revenue Commissioners;
Chapter 7
Imports
This Chapter outlines the procedures to be followed when
importing goods and services from outside the EU.
7.1 General
For VAT purposes, imports are goods arriving from non-EU countries. In this context it should be noted that certain other territories, (for example the Canary Islands, the Channel Islands, overseas Departments of the French Republic, Mount Athos (Greece) and the Åland Islands (Finland)) are regarded as not being part of the EU for VAT purposes. A full list of the VAT territories of the EU is available at Appendix L. As a general rule, imported goods are liable to VAT at the same rate as that which applies
to the sale within the State of similar goods. (The one exception to this is in the case of the importation of certain goods listed in Appendix G e.g. works of art, antiques etc). Accordingly, goods which are liable to VAT at a positive rate on sale within the State (most goods) are liable to VAT at a positive rate at importation and goods which are zero-rated on sale within the State (for example, most food, children’s clothing, books etc.) are zero-rated at importation. VAT and Customs Duty is normally payable at the point of importation unless the deferred VAT system is availed of (see paragraph 7.7).
7.5 Valuation for VAT purposes
The value of imported goods for the purpose of Value-Added Tax is their value for Customs purposes increased by:
• the amount of any duty or other tax (but not including Value-Added Tax) payable in relation to their importation,
• any transport, handling and insurance costs between the place of introduction into the EU and the State, and
• onward transportation costs to the place of final destination, if known, at the time of importation.
7.6 Customs value declared in a foreign currency
When the customs value of imported goods is expressed in a foreign currency, the amount in question is converted to euro in accordance with EU rules.The rate of exchange to be used is the rate determined on a calendar month basis under the monthly rates of exchange system for customs valuation purposes. Information regarding monthly rates of exchange is available from any Revenue District.
7.7 Deferred payment
A general provision exists under the deferred payment scheme for deferment of payment of VAT to the 15th day of the month following the month in which VAT becomes due. It is a direct debit system and requires the lodgment of a guarantee and compliance with the conditions of the scheme.
Importers and agents wishing to participate in the deferred payment scheme must make application to Revenue, AEP Bureau, using the appropriate forms as set out in the Revenue AEP Information Leaflet on Payment Methods. Approved traders/agents are assigned an AEP trader identification number. For further information see the aforesaid Information Leaflet on Payment Methods which, together with the applicaton forms, can be downloaded from the Revenue website or contact the AEP Bureau, 6th Floor, Apollo House, Tara Street, Dublin 2. Phone (01) 6330600/0680/0617 or e-mail:
aepbureau@revenue.ie.
7.8 Clearing taxable goods through Customs
Whether or not an importer qualifies for the deferred payment facility (in his/her own right or through an agent) an import declaration must be made either on a hard copy of the Single Administrative Document (SAD), supported by an invoice and any other documents required, or electronically by Direct Trader Input (DTI), before imported goods can be released. If the importer is not entitled to the deferred payment facility, VAT must be paid before the goods are released. If the importer is entitled to the deferred payment facility or is availing of the agent’s entitlement in this regard, the relevant authorisation number should be quoted.
7.9 The importance of quoting VAT numbers correctly
It is of the utmost importance that an importer (or agent on his or her behalf ) should quote his or her VAT number correctly on the SAD. Where an importer is using the services of an agent, the importer’s VAT number, not the agent’s VAT number, should be quoted on the SAD. Even if imported goods are not liable to VAT, the importer’s VAT number must be quoted on the SAD.
Where a group registration exists and associated companies or branches of companies are separately registered for VAT, the number of the importing company or branch should always be used, not the number of the remitter.
7.10 Credit in VAT return for VAT on imported goods
A VAT-registered trader is entitled to take credit in the VAT 3 return for VAT paid in respect of goods imported for the purposes of his or her business in the taxable period concerned subject to the normal restrictions (see paragraphs 10.5 and 10.6). For example, a VAT-registered trader who qualifies for the deferred payment facility and who imports goods in, say, January and February will pay the VAT due on the January imports on 15 February and the VAT due on the February imports on 15 March while
claiming a credit for such VAT in the January/February VAT return. A trader must retain evidence of VAT paid e.g. a copy of the SAD or the customs clearance slip.
Trust the above formalises the information as submitted by the previous posters. If you require any further information or clarification, please send me a PM. If you have any transport related questions, I would be happy to assist also