Online shoppers warned on customs change
Revenue and the Competition and Consumer Protection Commission (CCPC) have both issued warnings to consumers ahead of new customs rules that take effect in all EU member states on 1 July.
Currently, there is no customs duty on e-commerce packages entering the EU where the goods (excluding delivery and other charges) are valued at €150 or less.
From 1 July, however, a €3 duty for each item in a parcel will apply to goods bought online from non-EU countries – including Britain.
Revenue has warned that this will result in some online purchases becoming more expensive and will affect the process for returning goods.
Point of sale
The tax authority cites an example of a package from Asia that contains a pen, a notebook, and a keyring bought online.
As the package contains three distinct items, each will have a €3 duty, leading to a total charge of €9, plus VAT due.
While some websites will be set up to collect the duty at the point of sale, others will not, leaving the delivery company to request the payment of duty before the goods can be delivered.
Refunds
Revenue also warns consumers that, if they return an item, the duty is non-refundable, unless the goods are faulty. It adds that, in cases where goods are returned, some online suppliers will refund the VAT paid but many will not.
It is urging consumers to check the website’s terms and conditions to understand how the business selling the goods applies customs charges, as well as its policies on refunds of duty and VAT.
The tax body also warns that some websites may appear as if the business is Irish or EU-based, but its goods may still be shipped from a non-EU country.
‘Be alert to scams’
Meanwhile, the CCPC has warned online shoppers to be alert to scam messages seeking customs payment as the new charges come into force.
It has also advised shoppers who hope to escape the charges by ordering before 1 July to scrutinise delivery dates to avoid being hit with an unexpected bill.
“We saw a spike in scams when Brexit customs changes came in, and we expect to see the same with these new changes,” said CCPC communications director Grainne Griffin.
“Any requests for payment that claim to be from Revenue will definitely be a scam. These charges are never paid directly by consumers to the Revenue Commissioners.
“An Post has also advised that it will never send you a click-through link to pay charges,” she stated.