Dáil Éireann Debate, Tuesday - 30 November 2021
202. Deputy Thomas Pringle asked the Minister for Finance if a refund of the UK VAT rate is due in a situation in which a person uses the An Post AddressPal service and is charged UK VAT then Irish VAT on the UK Vat rate and a customs clearance fee plus shipping and delivery with regard to the operation of VAT post-Brexit; and if he will make a statement on the matter. [58767/21]
View answerI am advised by Revenue that electronic Customs import declarations are now required for all parcels / packages coming from non-EU countries including those coming through the postal system regardless of the value of the goods being sent. Since 1 July 2021, all goods imported to the Union, regardless of their value, are liable to VAT. In addition, all goods valued at €150 or more may be liable to a Customs duty charge.
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. In addition, postal operators and courier businesses may charge an administration fee for the delivery of the goods.
Generally, a UK retailer does not charge UK VAT on goods which are being exported from their territory. However, some delivery services use a proxy address in the UK. In these instances, from the perspective of the UK retailer and the operation of the VAT system in the UK, this appears as a sale within the UK, and not an export, and as a result is liable to UK VAT. When calculating the Customs value upon importation to Ireland, the invoice value is used in the calculation. Where the invoice value includes UK VAT then this will be included in the calculation of the Customs Value.
The charging of VAT in the UK including any refund of UK VAT, is a matter for the retailer in the UK.
