Online shopping after Brexit: What extra charges do consumers face?

Government minister Robert Troy has issued new advice to shoppers about the charges they may face when shopping online now. File Picture.

The layers of extra charges before purchasing from the UK post-Brexit are proving to be so cumbersome and confusing that the Government has issued another guide to Irish consumers.

Despite an agreement being reached between the EU and its former member before Christmas, thereby averting a no-deal scenario which would have plunged consumers and businesses alike into a nightmare of red tape, navigating the new rules remains a labyrinth of can-and-can't-dos. 

Trade Promotion, Digital and Company Regulation minister Robert Troy has felt compelled to issue what his department calls a "reminder" of new rules, after online forums and consumer sections were awash with would-be shoppers asking each other whether extra charges like Vat are to be paid or not.

The reminder guide issued by the department has laid bare just how cumbersome the new arrangements are for shoppers in Ireland.

I found this useful. https://t.co/AEpQ0qh4xS

— Úna McCaffrey (@UnaMcCaffrey) January 4, 2021

Mr Troy conceded that many online traders based in the UK were themselves left scratching their heads, leading to inconsistency across the board.

“We are now operating under a new set of rules for online trading and I want to remind Irish consumers to be alert to potential additional costs and changed entitlements when buying from UK online retailers," he said.

The main concerns for consumers are the possibility of additional costs, by way of Vat and customs charges that may apply depending on the value and origin of the goods in question. 

"Some online retailers are alerting consumers to these charges and some are including these additional charges in their final price. Consumers, though, need to check out each retailer’s policies and also whether there may be additional charges from the delivery company in respect of fee collection, for example."

The Irish Examiner this week reported that some UK-based retailers such as Made.com have simply given up on Ireland , stopping delivery to the Republic altogether in the wake of Brexit.

Mr Troy said Irish consumers should be aware that only goods of proven UK origin are tariff-free, and that goods bought from the UK but not of UK origin which cost more than €150 may be subject to customs duty. 

If that wasn't enough to digest, Mr Troy said Irish Vat would apply on goods bought in the UK that cost more than €22.

However, where UK Vat has been charged on the purchase of goods, Irish Vat will still apply when the goods are imported into Ireland.

Shopping on @AmazonUK after #Brexit and can't figure out where those extra charges are coming from? Don't know what an 'Import Fees Deposit' is? Read on... ⤵️ #onlineshopping https://t.co/EfKlcaEwIg

— Jack Quann (@jqbilbao) January 4, 2021

To add another layer of mentally-taxing calculations, if an Irish consumer is charged UK Vat, a refund of such Vat should be sought by the consumer from the supplier.

Buying from UK retailers online means Irish consumers are at the mercy of that government's consumer protection legislation if something goes wrong with a purchase, instead of the EU consumer protection they had previously enjoyed.

The new system is also proving a navigational nuisance for Irish businesses trading with their nearest neighbours.

Managing director of Cork-based procurement consultant Arvo and Brexit expert Mike McGrath, told the Irish Examiner his firm was experiencing a deluge of enquiries since January 1.