Dáil Éireann Debate, Tuesday - 15 February 2022
292. Deputy Michael Collins asked the Minister for Finance if he will address a matter (details supplied) regarding the collection of small amounts of VAT by An Post; and if he will make a statement on the matter. [7733/22]
View answerI am advised by Revenue that across the European Union, electronic customs import declarations are required for all parcels / packages coming from non-EU countries including the UK. In addition, since 1 July 2021, the VAT exemption for imported goods with a value of €22 or less was removed. From that date, all goods arriving into the EU from non-EU countries, regardless of their value, are subject to VAT. The applicable VAT rate for imports into Ireland is the relevant rate that would apply if the goods were purchased in Ireland. These new VAT rules ensure that goods imported from non-EU countries no longer have a preferential VAT treatment compared to goods purchased within the EU, including from Irish retailers.
In order to simplify the procedures for the importation of low value consignments, the EU introduced a scheme, where retailers in non-EU countries can register for the Import One Stop Shop (IOSS) which provides for the collection of VAT at the point of sale rather than at the point of import. The majority of large retailers in non-EU countries including in the UK, have signed up for this scheme. However, where the retailer has not signed up to the IOSS, then VAT is payable on import into Ireland regardless of the amount due.
Consumers should always check if any additional taxes and charges, payable on goods purchased from outside the EU including from the UK, have been included in the price displayed online. That way they should be able to avoid being presented with unexpected charges at a later stage.
Neither my Department nor Revenue have a role to play in the regulation of fees charged by businesses who deliver goods to an importer. That is a commercial arrangement between the business concerned and the importer. These businesses do not act on behalf of, nor do they collect the relevant taxes and duties on behalf of Revenue, but rather they act on the behalf of the importer and assist the importer in the correct clearance of their goods imported from outside the European Union.
