Online Christmas shoppers buying goods from UK sites have been warned to watch out for hefty custom charges.
New VAT charges in operation include the price of delivery, resulting in a €5.40 rise in the cost of a €20 item with a €3.50 postal charge, a rise of 27%.
Revenue is warning shoppers to be aware of the additional costs in the run up to Christmas following the end of an exemption on imported goods on July 1.
It means the cost of a pair of shoes for €250 in the UK, with a delivery charge of €12, would jump by €84.86 to €346.86.
Consumers making purchases from outside the EU online are advised that tax and duty costs not included in the online price, will be applied once the item arrives in Ireland.
Maureen Dalton, Head of Revenue’s South East Frontier Management Branch, said the Vat and customs duty charges apply to goods of any value arriving from outside the EU including the delivery charge.
The charges apply to the UK and all other non EU countries - but not to Northern Ireland.
“If you bought a Christmas jumper online last year for €20 from a non-EU country, no VAT or Customs Duty would have applied. This year however, for a similar purchase, VAT at 23% will apply to the cost of the jumper plus the postage or freight cost of bringing the goods to Ireland. In monetary terms this means that, this year, a Christmas Jumper that costs €20 for which a €3.50 postal charge is applied, €5.40 VAT will have to be paid before the jumper is delivered to you,” she said.
Customers will need to pay the extra charges either to the postal service or parcel operator before the goods are delivered. In addition, consumers can expect to pay an administration fee to parcel operators.
“Consumers also need to remember that, separate to import taxes and duties, it is normal practice for parcel operators to also charge an administration fee. Administration fees can vary so should be checked by consumers before they make their purchase,” Ms Dalton said.
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