VAT is decided nationally. The threshold for imports into the UK is IIRC £130 or so. Chasing 23 cents on a 1 euro transaction sounds like it wouldn't be worth it but if that's what the ROI want to do... it's up to them. Or, ultimately, their electorate ;)
Morat, the VAT is charged on everything from 1 cent upwards. The threshold you refer to is the point at where import duty starts t be levied for personal imports, and it is currently set at €150 for any item.
Under €150 you pay VAT on the purchase price [converted to Euros], plus the shipping cost [converted to Euros], and finally the courier admin costs for the customs declaration. VAT is added to the end figure, whether it turns out to be €10 or €149.
It's all money in Revenues coffers, and we have to pay it !!
Pierre3.
Like when we were importing cars from the US. We bought the car, arranged the shipping and when it arrived here got a bill from Customs. That was 10% import duty on the cost of the car but then VAT on the purchase price, the shipping costs, the shipping agents charges, the insurance costs and the import duty. So you have to pay tax on a tax, don't you just love it......
I recently bought some ECU's from Poland, daft of me but I forgot about import tax until the delivery bloke arrived and asked me to pay the extra £60 :-(
Last time similar happened was when I bought some pistons for my boat's 2 stroke outboard motor from the US.
Morat wrote:
VAT is decided nationally. The threshold for imports into the UK is IIRC £130 or so. Chasing 23 cents on a 1 euro transaction sounds like it wouldn't be worth it but if that's what the ROI want to do... it's up to them. Or, ultimately, their electorate ;)
Courier company charging a handling charge for processing a bit of paper is going to persue this in most cases, even if the VAT charged is minimal they still typically pass on a handling charge of £8 upwards per consignment for what amounts to very little work/time (reading figures off a customs declaration and generating paperwork to say you owe them for processing it, and the government whatever tax is due).
They won't care if its a few cents/pence of tax in the original case as its not really relevent to them beyond collecting whatever the figure is.