Online shoppers reminded of customs rules that may lead to additional charges

Consumers have been urged to check whether advertised prices includes any tax and duty costs due before making the decision to buy goods online.

Revenue officials have urged online shoppers to ensure that the prices shown include all the tax and duty costs due before making a decision to buy.

Last July, new customs rules came into effect meaning there may be charges on goods coming from outside the EU. 

There are two significant changes that will be in effect for the Christmas season.

“Since January last, the United Kingdom is not a member of the European Union. This means that customs formalities and, in certain circumstances, additional charges now apply to goods bought from the UK, excluding Northern Ireland,” explained Maureen Dalton, Head of Revenue’s South East Frontier Management Branch.

Also, since 1 July last, new VAT rules for goods arriving into Ireland from non-EU countries came into effect meaning that all such goods are subject to VAT regardless of their value. 

Ms Dalton said that consumers can avoid unexpected additional charges. They are urged to check whether the advertised price includes any tax and duty costs due before making the decision to buy the goods concerned.

“In some instances, the supplier may operate a duty paid model, where the total advertised price for the goods at the time of purchase includes Irish VAT and duties meaning no further Revenue charges will arise on delivery,” said Ms Dalton.

“However, where this is not the case, the amount of VAT and any duties due will be payable when the goods arrive in Ireland. You will have to pay these charges to the postal service or parcel operator before the goods are delivered.” 

VAT exemption

Ms Dalton explained that in July, the VAT exemption for imported goods with a value of €22 or less came to an end.

“This means that import VAT is payable on all goods arriving into Ireland from non-EU countries, irrespective of their value. For example, if you bought a Christmas Jumper online last year for €20 from a non-EU country, no VAT or customs duty would have applied.

"This year however, for a similar purchase, VAT at 23% will apply to the cost of the jumper plus the postage or freight cost of bringing the goods to Ireland.

In monetary terms this means that, this year, a Christmas jumper that costs €20 for which a €3.50 postal charge is applied, €5.40 VAT will have to be paid before the jumper is delivered to you.  

Consumers have also been warned that higher value goods will result in higher charges.

“If the purchase price of the goods alone is more than €150, you will have to pay customs duty and VAT. For example, if you purchase a pair of runners from the UK costing €250, assuming a freight charge of €12, you will pay an additional €84.86 in customs duty and VAT,” said Ms Dalton.