Revenue warns Christmas shoppers to be aware of tax implications of shopping online

Shoppers searching for a bargain online ahead of the Christmas rush have been warned to keep on top of taxes and other charges — and to not try and dodge the rules.

The Revenue Commissioners yesterday said consumers needed to be aware of the tax implications of buying items from non-EU countries, as depending on the worth of the item, they may be required to pay Vat and customs duty.

Consumers were also warned to steer clear of sites that offer to undervalue an item so as to dodge any relevant charges — and the Consumers Association of Ireland provided another piece of advice regarding the ‘bundling’ of different items which, cumulatively, could also incur charges for the purchaser.

According to Revenue, goods bought online and coming from outside the EU will have a Vat charge if the value of the package is over €22, with Vat calculated on the full item value.

If the goods are over €150 in value, Customs duty may also be payable, again on the full value of the goods, plus the cost of postage, packaging and insurance, and if someone sends you a gift from outside of the EU, and it is valued at under €45, there is a relief from payment of import duties.

A Revenue spokesperson said: “Online shoppers should also be cautious about websites that offer to undervalue your goods in order to avoid these import duties. This is illegal and shoppers should be aware that, as the importer of the goods, they are legally responsible for ensuring that the information provided is accurate and that all duties and taxes are paid.”

Dermot Jewell of the Consumers Association of Ireland said the warning was an indication of Revenue “flexing its muscles” and also of the popularity of online shopping.

“When you purchase two or three items on the one site and they bundle it, it can cumulatively give rise to Vat or other charges,” he said.