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Paying VAT on overseas order


Flowta
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I have ordered some custom chainrings from Italy, got an email this morning saying that they are ready to be sent.

 

What is the deal with VAT, on the invoice they have included VAT.

Do I have to pay again when it arrives in SA? If I show that I have paid Vat already will they waiver it?

 

Also how do I go about doing an international bank transfer. The manufacturer doesn't have a paypal account or online payment.

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You'll have to contact your bank and find out what they require to do an international transfer.

 

You'll also have to pay VAT when you collect your goods, the SA goverment also wants their money.

Since it's bike parts there should be no duties just VAT.

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I have ordered some custom chainrings from Italy, got an email this morning saying that they are ready to be sent.

 

What is the deal with VAT, on the invoice they have included VAT.

Do I have to pay again when it arrives in SA? If I show that I have paid Vat already will they waiver it?

 

Also how do I go about doing an international bank transfer. The manufacturer doesn't have a paypal account or online payment.

 

Export orders do not attract Vat in Italy.

 

Explain to them SA is not a suburb of Rome and ask them to remove the Italian Vat Portion - I doubt they will have an issue doing this, it was probably just an oversight on their behalf.

 

If they give you a story, cancel the order, you DO NOT have to pay foreign Vat.

 

International bank transfers are simple, ask your supplier for their IBAN number (your bank will need this number) as well as their banks name, address and account number, if they can give you a "swift number" get that as well, usually your bank will just need the IBAN number and the banks name and address but go prepared, just in case.

Then just take the correct original invoice (sans vat) from your supplier to your bank and ask to do an international bank transfer, there will be some forms you will need to fill out and its done.

 

When your goods arrive ensure you keep all the documents from your clearing agent / Post office - most banks will ask you to produce them at some later stage as proof that the goods came into the country.

 

With a bank transfer all risk is on you if the supplier fails to deliver, a better option (depending on invoice value) is to ask your supplier if they will accept a "letter of credit" if yes,and the value is sufficient, use this instrument, its somewhat more expensive for both you and the supplier, but it protects you in that the bank only pays the supplier when they can prove the goods are shipped.

 

Locally you will have to pay VAT on the invoice and any duties if required.

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Also - you will have to be registered with SARS as an Importer, except if you use a clearing agent who might then use their importers nr to clear your goods...

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Export orders do not attract Vat in Italy.

 

Explain to them SA is not a suburb of Rome and ask them to remove the Italian Vat Portion - I doubt they will have an issue doing this, it was probably just an oversight on their behalf.

 

If they give you a story, cancel the order,you DO NOT have to pay foreign Vat.

 

International bank transfers are simple,ask your supplier for their IBAN number (your bank will need this number) as well as their banks name,address and account number if they can give you a "swift number" get that as well, usually your bank will just need the IBAN number and the banks name and address but go prepared in case.

Then just take the correct original invoice (sans vat)from your supplier to you bank and ask to do an international bank transfer, there will be some forms you will need to fill out and its done.

 

When your goods arrive ensure you keep all the documents from your clearing agent - most banks will ask you to produce them at some later stage as proof that the goods came into the country.

 

With a bank transfer all risk is on you if the supplier fails to deliver, a better option is to ask your supplier if they will accept a "letter of credit" if yes,and the value is sufficient, use this instrument, its somewhat more expensive for both you and the supplier, but it protects you in that the bank only pays the supplier when they can prove the goods are shipped.

 

Locally you will have to pay VAT on the invoice and any duties if required.

 

Thanks, I will let them know about the VAT (If they don't change it's still cheaper than my other options for the chainrings)

 

He has sent me through all the details(including swift number), will do the transfer at the bank in the morning.

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Also - you will have to be registered with SARS as an Importer, except if you use a clearing agent who might then use their importers nr to clear your goods...

 

Really? You don't necesarilly "need" a clearing agent or be an importer to buy from CRC.

 

How is this different?

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Really? You don't necesarilly "need" a clearing agent or be an importer to buy from CRC.

 

How is this different?

 

I assume its not huge values and it will come through the post?

 

Naas is correct in that if you use a formal clearing agent they may request an importers number, or ask you to pay for a bucket code, however if it comes through the post or a bulk clearing agent like DHL / FEDEX etc it should be fine and they will take care of the codes needed.

 

Most folk buying from CRC pay with a credit card or a similar system which actually flies under the radar regarding SA laws on foreign exchange transactions,the reserve bank knows it happens but its difficult to police so its largely ignored.

 

When you pay direct with a bank theres a bit more red tape as the bank has to be compliant with regulations regarding foreign exchange transfers.

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I assume its not huge values and it will come through the post?

 

Naas is correct in that if you use a formal clearing agent they may request an importers number, or ask you to pay for a bucket code, however if it comes through the post or a bulk clearing agent like DHL / FEDEX etc it should be fine and they will take care of the codes needed.

 

Most folk buying from CRC pay with a credit card or a similar system which actually flies under the radar regarding SA laws on foreign exchange transactions,the reserve bank knows it happens but its difficult to police so its largely ignored.

 

When you pay direct with a bank theres a bit more red tape as the bank has to be compliant with regulations regarding foreign exchange transfers.

 

It's 75 euro including postage. Hopefully it goes through ok.

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I assume its not huge values and it will come through the post?

 

Naas is correct in that if you use a formal clearing agent they may request an importers number, or ask you to pay for a bucket code, however if it comes through the post or a bulk clearing agent like DHL / FEDEX etc it should be fine and they will take care of the codes needed.

 

Most folk buying from CRC pay with a credit card or a similar system which actually flies under the radar regarding SA laws on foreign exchange transactions,the reserve bank knows it happens but its difficult to police so its largely ignored.

 

When you pay direct with a bank theres a bit more red tape as the bank has to be compliant with regulations regarding foreign exchange transfers.

 

 

100% correct/ CRC purchases are done with CC's. Bank tranfers requires a importers code or reserve bank permission...

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Got an email back from the guy, says it was a mistake on his side.

He's taken the VAT (IVA) off.

 

Will go make the payment at the bank tomorrow.

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Got an email back from the guy, says it was a mistake on his side.

He's taken the VAT (IVA) off.

 

Will go make the payment at the bank tomorrow.

 

Yeah, good show, didnt think it would be an issue though.

 

Unless you are a regular purchaser (importer) and they know you, the order is just processed through usual channels, sometimes the staffer dosnt know or they just forget they are selling "out" of the European union and Vat will not apply,but Italians are easy to do business with, ask him to include some quality Parmigiano-Reggiano cheese and you will send him some quality red wine - he will be your mate for life.! :D

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Yeah, good show, didnt think it would be an issue though.

 

Unless you are a regular purchaser (importer) and they know you, the order is just processed through usual channels, sometimes the staffer dosnt know or they just forget they are selling "out" of the European union and Vat will not apply,but Italians are easy to do business with, ask him to include some quality Parmigiano-Reggiano cheese and you will send him some quality red wine - he will be your mate for life.! :D

 

True that, next time I get a chance to visit my friends in Verona, I'll have to make a detour and go past the factory (providde my friends haven't drunk the wine already) :)

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Also - you will have to be registered with SARS as an Importer, except if you use a clearing agent who might then use their importers nr to clear your goods...

Cr@p, "In respect of private importers, only 3 consignments, imported for non-commercial purposes with a value not exceeding ZAR20 000.00 per consignment is permitted to be imported per calendar year without the importer having to register with customs."

DS

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Cr@p, "In respect of private importers, only 3 consignments, imported for non-commercial purposes with a value not exceeding ZAR20 000.00 per consignment is permitted to be imported per calendar year without the importer having to register with customs."

DS

 

Quite correct.

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Watch out for bank charges on that TT! Also a Bank SWIFT number helps expidite the transfer, get that from the supplier

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