Online shoppers have been warned that they will be hit with VAT and customs duty charges if they buy goods that are coming from outside the EU. Revenue said last week that almost 90,000 people were hit with the taxes and duties last year when they had goods delivered to their doors. The taxation body raised €2.1m in customs duties and value added tax (VAT) from parcels coming into Ireland last year.
Charges were applied to 88,280 packages, mainly on doorsteps when parcels were being delivered. Goods imported from outside the European Union are subject to VAT if the value is more than €22. A spokeswoman for Revenue said: “Online shopping is increasing in popularity and, in the run up to Christmas. “Revenue staff in postal depots across the country are noticing an increase in traffic as a result of shoppers looking for bargains online.”
Where goods are valued are more than €150 then customs duty may also be payable, depending on the type of goods and the country of origin. The duty is charged on the full value of the goods, plus the cost of postage, packaging and insurance. However, John Lowe, The Money Doctor reports that if someone is sent a gift from outside the EU, and it is valued at less than €45, there is a relief from payment.