Dáil Éireann Debate, Thursday - 25 February 2021
74. Deputy Róisín Shortall asked the Minister for Finance if guidance and advice will be provided to the public in respect of charges that are payable on items purchased online from the UK; the permissible taxes; the permissible customs duty; the permissible other charges on these transactions; the recourse for consumers who are overcharged under these headings; and if he will make a statement on the matter. [10928/21]
View answerThe Deputy will be aware that since 1 January 2021, the UK has been outside the EU Single Market and Customs Union, and the trading relationship between Ireland and Great Britain has changed considerably. Compliance with relevant customs and other regulatory controls such as sanitary and phytosanitary (SPS) measures are now an integral part of trade with Great Britain. As a result, imports including online purchases from the UK (excluding Northern Ireland) may incur additional charges including Customs duties and VAT.
I am advised by Revenue that VAT is chargeable on all imports from Great Britain that are greater than €22. Customs duty may be chargeable on purchases over €150, depending on the origin of the goods. The EU-UK Trade and Cooperation Agreement has eliminated Customs duties for goods imported from Great Britain where the goods are of UK origin. However, where the goods being imported from the UK are not of UK origin, then these are subject to Customs duties. The customs value on which Customs Duty is calculated is the cost of the goods plus the transport costs (including postage), any insurance fees and any handling charges to deliver the goods to the EU. VAT is calculated on the Customs Value, plus any Customs Duty applicable.
Consumers should carefully check the billing policy of the website from which they are purchasing to confirm if the price quoted includes VAT and Customs duty. If VAT and Customs duty is not included, then this will have to be paid when the goods are delivered. Carriers/delivery companies may also add their own charges, and these can vary depending on the carrier/delivery company used.
Queries relating to the carrier/delivery company charges should be directed to the company who delivered the goods. Queries relating to the calculation of the import charges should be directed to the company that completed the customs formalities which, usually for online or personal shopping, will be the carrier/delivery company.
Finally, I am advised by Revenue that its website has a useful guide to import taxes for online shopping: https://www.revenue.ie/en/importing-vehicles-duty-free-allowances/buying-of-goods-online-for-personal-use/index.aspx. There are detailed examples which show how the taxes are calculated, guidance on returning items and a section covering, ‘How to claim a refund of Customs Duty and Value-Added Tax (VAT)’ where the goods have been returned to the seller. Useful information is also available under the ‘Shopping online’ section of the Competition and Consumer Protection Commission website at https://www.ccpc.ie/consumers/shopping/brexit/.
