Not to mention that they also have the option (at their discretion) of levying 'Special Import Duty' , plus the VAT is charged not just on the goods, but the postage costs as well; and if there's no invoice they again, at their discretion, decide how much the item is worth and charge accordingly.
VAT is always calculated on goods costs and postage costs and any other costs associated to your goods you paid for its the total costs
The Customs value is the costs of goods plus postage,packaging and insurance costs
VAT is calculated on anything over €22.00 in Ireland and over £15.00 in the UK
Import Duty is a different thing and only applies to amounts for example in Ireland over €150.00 and over £135 in UK
Gifts in the UK is anything over £36.00 for VAT purposes
To qualify as gifts
goods must be:
described as gifts on the customs declaration
for a birthday, anniversary or other occasion
bought and sent between individuals (not companies)
intended for personal use
VAT is charged on the total value, including:
- the price paid for the goods
- postage, packaging and insurance
- any duty you owe
So its always best to choose a value that's under €22.00 Ireland and under £15.00 UK and mark as merchandize
Just calculate exchange rate $ to € or $ to £ that's gives you a value less than €22 and less than £15.00
Remember the exchange rate revenue use for currency is always worse than daily rate we get
If you choose to have original invoice with your parcel and they open your parcel you and the seller can be caught out
Don't choose mark as Gifts when ordering from a company as this will mean you can end up more likely to get hit for VAT than if you choose mark as merchandize
