Online shopping add-on fees to hit €5
Revenue has confirmed that consumers who shop online will face a new €2 charge per item on goods bought outside the EU from 1 November.
The charge relates to goods purchased online from non-EU countries – including Britain – and shipped to consumers in Ireland and other EU member states.
There are no customs declaration or charges for trade in goods between Ireland and the North, so existing arrangements are unaffected by this change.
This fee is separate from, and in addition to, the €3 customs duty per item that has applied since 1 July this year.
E-commerce growth
The charge, part of an overhaul of the EU customs framework, is intended to cover the increased costs being incurred by customs authorities as a result of the huge growth of e-commerce over the last number of years.
The handling fee will be paid by the seller or by the business delivering the goods but Revenue has warned that these firms may pass on the charge to the end consumer.
Revenue has given the example of a package valued at €10 containing a pen, notebook, and key ring bought online and sent from outside the EU contains three different items.
Since 1 July, the €3 customs duty applies to each item, resulting in customs duty of €9, plus any applicable VAT. From 1 November, an additional handling fee of €2 per item will also apply, adding €6.
The total charges will, therefore, be €15, plus any applicable VAT.
Consumer options
If the online seller passes on the charge to consumers, then they will pay the customs duty and the handling fee in one of two ways:
- Some websites will be set up to collect the fees at the point of sale. In this case, both charges will be shown, and the total price at checkout will be the final price, with no extra charges on delivery, and
- Other websites may not collect these charges at checkout, in which case the delivery company will require payment before the goods can be delivered.
Revenue points out that the new handling fee is non-refundable – even if consumers decide to return an item.