Dáil Éireann Debate, Wednesday - 3 February 2021
193. Deputy Rose Conway-Walsh asked the Minister for Finance the estimated cost in terms of customs charges, duty and VAT associated with an individual importing power tools on a non-commercial basis from the United Kingdom; and if he will make a statement on the matter. [5466/21]
Amharc ar fhreagraSince 1 January 2021 the United Kingdom (UK) has ended the transition period with the European Union (EU) with EU rules no longer applying, is no longer a member of the EU and as a result, imports 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 Revenue website has a useful VAT database for finding the appropriate VAT rates. This database is available at https://www.revenue.ie/en/vat/vat-rates/search-vat-rates/VAT-rates-database.aspx. The VAT rate for power tools is 21%.
The EU-UK Trade and Cooperation Agreement has eliminated Customs duties for goods imported from Great Britain where the goods are of UK origin under the Rules of Origin in the agreement. Importers of goods to Ireland must claim the preferential tariff rate of 0% on the import declaration and must be able to prove that the goods being imported are of UK preferential origin. The exporter in the UK should be able to provide the required proof. Goods of non-UK origin imported from the UK are liable to customs duty.
Customs duty is normally calculated as a percentage of the customs value of the goods. The percentage rate of duty varies depending on the type of goods being imported. The EU TARIC database, which is available via the Revenue website, can be used to determine the classification of a product and the 3rd country customs duty rate that applies on import into the EU. Further information on the classification process is available on the Revenue website at https://www.revenue.ie/en/customs-traders-and-agents/importing-and-exporting/classification/index.aspx. Importers having difficulty in determining the product classification code for a particular product should contact the Revenue Tariff Classification Unit through Revenue’s secure MyEnquiries service or email: tarclass@revenue.ie for guidance. A detailed description of the product should be included to assist with classification. Power tools is a generic term and is not specific enough to classify the goods and to determine the tariff rate.
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.
