Duty, VAT on importing watches

[DragonJade]

A bit of a strange question, so this might be for the import experts or those who've imported watches before. Let's say I wanted to import 100 watches at €9 each, would the calculations look like this (rates in the photo below, from Customs & Excise)? I've also put them in a spreadsheet in the attached photo which might make things easier to read.


Total cost of watches = €900

Cost of insurance = €30

Cost of shipping = €50
—————————————-
CIF Total = €980
——————————————

Third Country Duty = 4.50 % (MIN €0.30 / MAX €0.80)
€980/100(watches)*0.045 = €0.441 (between MIN and MAX), so
€0.441*100(watches) = €44.10


CIF + Third Country Duty = €1024.10
————————————————————

VAT @ 20% of €1024.10 = €204.82
————————————————————


——————————
——————————
TCD + VAT = €248.92


So, I’d pay the taxman €248.92 on €900 of watches. Is this correct?

[crownpuller]

I'm no expert, but my understanding is: You only pay the duties on the goods themselves, not the insurance & shipping costs.

I stand to be corrected ?

[rodia77]

Yep, something like that. There might also be some additional customs handling cost.

Edit: There are calculation examples on the Irish revenue site: https://www.revenue.ie/en/importing-...de-the-eu.aspx -- there are differences in details (eg VAT is 23% rather than 20), but the general rules should be the same.

[DragonJade]

Yep, something like that. There might also be some additional customs handling cost.

Edit: There are calculation examples on the Irish revenue site: https://www.revenue.ie/en/importing-...de-the-eu.aspx -- there are differences in details (eg VAT is 23% rather than 20), but the general rules should be the same.

I just had a look at that website. It says you include the cost of shipping, insurance and handling charges to the value of the goods before you calculate duty, for good outside of the EU. I forgot to take into account handling charges.

[tribe125]

Hello DJ!

The arithmetic looks OK to me. The handling charge will depend on the handler, I guess, but shouldn’t be that significant.

Now then, tell us what you’re up to...

[rodia77]

Now then, tell us what you’re up to...

I'm guessing he's preparing a serious giveaway on IWL, what else.

[DragonJade]

I'm guessing he's preparing a serious giveaway on IWL, what else.

Maybe sometime in the future.

[DragonJade]

Hello DJ!

The arithmetic looks OK to me. The handling charge will depend on the handler, I guess, but shouldn’t be that significant.

Now then, tell us what you’re up to...

Hi.

Well, long story short, I have a cousin who owns a watch business/brand in Asia. It's in several countries already, and he's asked if I'd be interested in starting and running his European operation.

Needless to say, I'm out of my depth on this and need to get clued up asap. I need to quickly learn things like import duty/taxes, setting up a company, what kind of company to set up, etc. Any help would be appreciated!

[is that my watch]

Hi.

Well, long story short, I have a cousin who owns a watch business/brand in Asia. It's in several countries already, and he's asked if I'd be interested in starting and running his European operation.

Needless to say, I'm out of my depth on this and need to get clued up asap. I need to quickly learn things like import duty/taxes, setting up a company, what kind of company to set up, etc. Any help would be appreciated!

suppose the questions are:

what sort of watch and what sort of market and price ?

and probably if me start of small call it a shop but sell via ebay to start, spend what only you can afford to loose if it goes wrong and advance slow and steady and know your market who you are aiming to sell to as $9 a head it would be a fashion brand mean what selling $24- $ 30 a head ? nothing wrong in this. fashion brands get looking down on by those in the know but ..hell of a lot of people ant in the know so price well and if funky ,eye catching they may sell well ..

but watch out for fads too ..

remember the archive homage watch for six months or so every one must have one ..but now no interest on them so yeah, but could work well .. special if they have built up the name at all ?

[tribe125]

Needless to say, I'm out of my depth on this and need to get clued up asap. I need to quickly learn things like import duty/taxes, setting up a company, what kind of company to set up, etc. Any help would be appreciated!

I’m sorry not to be able to help - I wouldn’t last one day in business.