17/10/2018
For our current and potential clients ! We've been asked for many times about the different types of taxes applied when buying online from another country regardless whether from EU or Non EU Countries, thus we chose the following article . it's a bit longer than usual but it's highly recommended to be read !
As well, It would be great to give us like our page or add a comment .you may wish as well to share our page with your friends and relatives or even visit our website (www.zitmart.com ) and give us a feedback . Thanks in advance for your cooperation....
Buying goods and services online for personal use
The internet allows access to an enormous marketplace without geographical restrictions. The potential benefit to consumers of e-commerce remains largely untapped, due to a number of factors. In this section you will find a solution to the main issues you may face when buying online for your personal use as regards tax and customs issues. Goods and services are bought for personal use when you are not using them for commercial purposes, but for your own use or your family's.
You should be aware that, if you are buying goods online, you may have to pay customs duty, depending on the country that you are buying the goods from. The section on buying goods online provides more information.
Be aware that when buying to***co products or alcoholic beverages online you will be charged excise duties.
Buying goods online
Buying goods
What is e-commerce in the case of goods?
It is on-line ordering of physical goods from a supplier over a network, either by e-mail or directly from a website, which are then delivered to you through established channels. The relevant shipments have in any case a commercial nature (they do not refer to gifts). The rules differ according to where you are buying the goods from.
Buying goods online coming from:
1- Buying goods online coming from within the European Union
Countries
Belgium
Bulgaria
Croatia
Czech Republic
Denmark (except the Faroe Islands and Greenland)
Germany
Estonia
Ireland
Greece (except Mount Athos)
Spain (except the Canary Islands)
France (except French overseas departments, Saint-Pierre and Miquelon, and Mayotte)
Italy
Cyprus
Latvia
Lithuania
Luxembourg
Hungary
Malta
Netherlands
Austria
Poland
Portugal
Romania
Slovenia
Slovakia
Finland (except the Åland Islands)
Sweden
United Kingdom (except the Channel Islands and the Isle of Man)
a. Customs duties
There are no customs duties to be paid when buying goods coming from within the European Union.
b. VAT
VAT is calculated as a percentage (VAT rate) of the price of the goods.
The seller will calculate VAT based on either the VAT rate of the Member State from which the goods are shipped to the buyer (which is usually the Member State from which the goods are bought) or the VAT rate of the Member State into which the goods are shipped. The VAT rate applied by the seller depends principally on the distance sales thresholds for intra-EU Business to Consumer (B2C) supplies of goods. They are determined by the Member State of destination (€ 35 000 or € 100 000). A seller has to check the total amount (without VAT) of distance sales in any one calendar year and also in the previous one:
if that amount is lower than the threshold adopted by the Member State of destination, the seller can apply the VAT rate of the Member State from which the goods are sent; if that amount is higher than the threshold approved by the Member State of destination, the seller can apply the VAT rate of the Member State into which the goods are sent. The principles mentioned don't apply to supplies of second-hand goods, works of art, collectors' items or antiques and second-hand means of transport, which have special arrangements.
c. Excise Duty
Excise duty is due when buying online alcoholic beverages such as beer, wines and spirits or to***co products a European Union Member State.
It is the responsibility of the seller to pay the Excise Duty due in the Member State where the goods are being sent to. For that purpose, he has to be registered, as far as Excise Duty is concerned, in the Member State of destination of the goods. In most Member States the seller needs to appoint a tax representative in the Member State of destination who ensures the duty payment in the latter.
Excise Duty must be paid regardless of the quantity and even if the goods are a gift. You should therefore expect the price you pay to reflect the payment of duty. If the price is very low, duty has probably not been paid. If the seller does not pay the Excise Duty the goods can be seized by customs on arrival or you as the buyer may be held liable to pay the excise duties. Therefore, verify with the seller if he ensures the excise duty payment in the Member State of destination.
2-Buying goods online coming from a non-European Union country
As regards information displayed on this page, the Island of Heligoland, the territories of Büsingen, Ceuta, Melilla, Livigno, Campione d'Italia and the Italian waters of Lake Lugano are subject to the same rules as non-EU countries.
Warnings
Customs duty
VAT
Excise duty
Customs declaration
Customs clearance fees
As soon as you buy a product from a non-EU country, then effectively you become an importer and become liable to Customs and Excise Duty as well as Value Added Tax (VAT) payments. If the terms of sale do not specify another arrangement, the goods would normally be held by the Customs Authority at entry, pending the payment of duty and tax. Customs officers examine packages arriving from outside the EU in order to:
check for prohibited or restricted goods - such as illicit drugs, confirm that the description and value stated on the Customs Declaration is correct and check the Customs Declaration to determine if Customs Duty, Excise Duty and/or Import VAT are chargeable.
Warnings
VAT, Customs and Excise duties are likely to be paid on top of the advertised purchase price.
A Customs Declaration must be submitted. Some commercial websites may offer to show a value on the Customs Declaration that is much lower than the actual price paid so that you don't have to pay duty and/or VAT which may result in seizure of the goods.
Customs duty
On the basis of the data provided in the customs declaration, the supporting documents that accompany it and any information which they may request, the competent customs officers determine, impose and collect Customs duties that are due.
Customs duty is calculated as a percentage of the customs value of the goods:
The percentage or rate varies depending on the type of goods. You can check the tariff applicable in the TARIC database.
The customs value is made up of:
the price paid for the goods,
the insurance cost,
the shipping cost.
See how the customs value is calculated in the EU Member States.
In some cases, additional duties may be charged, depending on the country of manufacture of the goods. The TARIC database coves all measures relating to tariff, commercial and agricultural legislation. Customs Duty is not due for goods, provided directly to the buyer when their value does not exceed 150 euros.
This exception does not apply to perfumes and toilet waters, to***co or to***co products and alcoholic products which are subject to special limits on the quantity provided.
VAT
The import VAT is calculated as a percentage (VAT rate) of the taxable amount.
The VAT rate is the one applicable in the country where the goods are being delivered.
The taxable amount is made up of the customs value plus the duty paid and the transportation and insurance costs up to the first place of destination within the EU. VAT is not due when the total value of all goods in a consignment (value not inclusive of customs duties or transport costs) is less than a threshold. The threshold may vary from 10 euros to 22 euros, depending on the EU country. For an overview see the pie chart below (information available for 24 Member States). Certain countries (like Sweden and Poland) however, exclude mail orders from the exemption. This exception does not apply to to***co or to***co products and alcoholic products.
The import VAT may either be included into the overall delivery price or not.
If the import VAT is not included in the price paid to the seller (which is the common situation), you will have to pay it to the postal company or express courier, or directly to the customs if you clear the goods at customs yourself. In the latter case, the procedure differs according to the country. If you pay all inclusive, you will be paying import VAT to the seller when paying the total price. But if the import VAT is not properly estimated by the seller, or if the seller fails to ensure the transfer of this VAT amount to the customs, you must be aware that national legislation can hold you jointly liable.
Excise duty
The goods will be held by the Customs Authority at entry into your country, pending the payment of excise duty. Rates of excise duty are set by each individual Member State.
Ci******es and hand rolling to***co must bear health warnings and fiscal marks, and containers of spirits that are larger than 35cl must bear a duty stamp.
The Customs Declaration
The Customs Declaration provides information to the Customs authorities about the goods that you are importing.
This declaration must be submitted by a person established in the EU or his representative who is able to present the goods to customs. In the ordinary case this could be the buyer, the company that ships the goods or the carrier who acts as a representative.
If you are the person who submits the Customs Declaration, a courier company may offer to make the declaration on your behalf, but there is normally a charge for this service. If you are not the person who submits the Customs Declaration, you should verify with the supplier that it is submitted. The Customs Declaration should indicate correctly the nature of the goods and their value not taking into account taxes, charges, transport or other additional costs.
Some commercial websites will offer to show a value on the Customs Declaration that is much lower than the actual price paid so that the customer does not have to pay duty and/or VAT when the goods enter the Member State of import. It is in the customer's own interest to make sure that the declaration has been submitted and is accurate. If no declaration is made, or the information in it was found to be inaccurate, the acceptance of the declaration, and thus the delivery of the package to the receiver may be delayed or even not take place as the Customs officials are entitled to make further enquiries and impose penalties and sanctions as the case may be. The packages sent by post have to be accompanied by a CN22 or CN23 Declaration, as required by the special rules of the universal postal service.
The Customs Authority in your country is entitled to open and examine any package if it considers this appropriate. Packages might even be seized by Customs and, when appropriate, destroyed.
Customs clearance fees
The customs clearance is the documented permission to pass that the national customs authority grants to the imported goods.
The customs clearance is typically given to a shipping agent to prove that all applicable customs duties have been paid and the shipment has been approved.
The shipping provider may charge a customs clearance fee or customs handling fee for processing the import declaration, an advancement fee for paying the duty and VAT on behalf of the recipient, an airline handling fee for loading and unloading the goods, a security fee for screening or x-raying the goods and a fee for preparing the customs declaration.
These charges will vary from company to company.
When goods are brought into the European Union by postal operators such additional charges are limited to the costs of the customs clearance procedure.
Member States cannot impose charges related to customs clearance higher than the actual costs incurred.
3- Other territories:
Mount Athos, the Canary Islands, the French overseas departments, the Åland Islands and the Channel Islands;
Faroe Islands, Greenland, Saint-Pierre and Miquelon, and Mayotte;
Monaco, the Isle of Man and Akrotiri and Dhekelia;
Buying goods online from Mount Athos, the Canary Islands, the French overseas departments, the Åland Islands and the Channel Islands
VAT must be paid. The rules are the same as those applying when buying goods online from a non-European Union country.
Customs duty is not due.
Excise Duty must have been paid if you are buying alcoholic beverages (such as beer, wines and spirits) or to***co productsonline from the mentioned territories. The rules are the same as those applying when buying goods online from a non-European Union country.
Buying goods online from Faroe Islands, Greenland, Saint-Pierre and Miquelon and Mayotte
VAT must be paid. The rules that apply are the same as those when buying goods online from a non-European Union country.
Customs duty must be paid. The rules that apply are the same as those when buying goods online from a non-European Union country.
Excise Duty must have been paid if you are buying alcoholic beverages (such as beer, wines and spirits) or to***co productsonline from the mentioned territories. The rules that apply are the same as those when buying goods online from a non-European Union country.
Buying goods online from Monaco, the Isle of Man and Akrotiri and Dhekelia
VAT must be paid. The rules that apply are the same as those when buying goods online from within the European Union. Monaco, for VAT purposes, is considered as part of France and Isle of Man as part of United Kingdom. Therefore, you will pay French or United Kingdom VAT (or as the case may be, VAT of the destination country).
Customs duty is not due.
Excise Duty must have been paid if you are buying alcoholic beverages (such as beer, wines and spirits) or to***co productsonline from the mentioned territories. The rules are the same as those that apply when buying goods online from within the European Union.
