Non-EU online purchases hit by VAT next month
ONLINE buyers have been advised that tax changes are underway.
From the start of next month, a value added tax (VAT) will be charged on all goods arriving in Ireland from countries outside the European Union (EU).
This means that the current VAT exemption for imported goods valued at € 22 or less will end.
From that date, all goods arriving in Ireland from third countries, regardless of their value, will be subject to VAT, the Revenue Commissioners have said.
The tax rate is that which would apply if the goods were purchased in Ireland.
Maureen Dalton, Senior Manager of the Customs Revenue Division, warned consumers that the new VAT rules could apply to goods purchased in a third country before July 1 if they arrive in Ireland for delivery on that date or after that date.
She said the new rules apply in all EU member states and are in place to ensure that goods imported from outside the EU no longer enjoy preferential VAT treatment over goods purchased in the EU, including from Irish retailers.
“Goods from non-EU countries are considered imports. This means that the goods go through customs formalities and are subject to certain taxes and duties.
“Currently, if the cost of the goods you buy online, including freight, insurance and handling charges, is less than $ 22, you don’t have to pay VAT.”
She said that from July 1, VAT will be charged and collected on all goods, regardless of their value.
The rules on customs duties and excise duties remain unchanged.
This means that in addition to paying VAT, if the goods cost more than € 150, excluding transport, insurance and handling costs, consumers will also have to pay customs duties.
Ms Dalton said: “If you buy alcohol or tobacco products online outside the EU, VAT, customs duties and excise duties are all payable, regardless of the value of the product. your purchase.”
Ms Dalton reminded buyers to be aware that these changes may mean additional charges may apply once the products purchased arrive in Ireland for delivery.
“If you are shopping online, you should check whether the advertised price includes all taxes and duties owed before making your decision to purchase the affected products.”
If the supplier operates a duty-paid model, the total price paid for the goods at the time of purchase will generally include Irish VAT and any duties due, meaning that no further charges will be made on delivery.
However, if this is not the case, the amount of VAT and duty due will be calculated by the tax authorities based on the information provided on the customs declaration, Ms Dalton said.
This is normally completed by the postal service or parcel operator delivering the goods.
The consumer will then have to pay any additional costs to the postal service or the parcel operator before delivery of the goods.