If you live in the EU and bought cheap goods from China or anywhere outside the EU you may have been surprised when you didn’t have to pay customs duties or VAT on the product.
To be honest, the extra payment required by An Post/a third party carrier to pay for more expensive goods is probably what surprised most people buying from outside the European Union. That can be €10 to €15 or more.
Well, from July 1st you may have to pay that fee regardless of how much the goods you bought are. If you’re looking for a cheap phone case, or book or whatever from the UK you better do it ASAP because if it’s delivered here (Ireland or elsewhere in the EU) after July 1st you’ll end up paying extra.
The Irish Revenue website has a page explaining how it works and it’s not pretty.
From 1 July 2021, import VAT will be payable on all goods entering the EU, irrespective of their value. VAT will always be collected, irrespective of the amount due. If you order goods valued at €22 or less before 1 July 2021, that arrive after that date, you may have to pay VAT.
Here’s an RTÉ article on the change.
The revenue.ie page does not mention that non-EU sellers can charge VAT at point-of-sale. A paragraph on this page explains how this works:
The EU has therefore agreed to scrap the import VAT exempt threshold. Instead, it will require EU and non-EU sellers to charge VAT at the point of sale for consignments of €150 or below. This will create a more efficient ‘Green Channel’, with quick and easy customs clearance. Note – the delivery agent may still act as the import VAT collector (see below).
Sellers will charge VAT at the rate of their customer’s EU country of residence at the point-of-sale on the website. Sellers can use the delivery address of the customer to determine the country VAT rate. No VAT is due at the point of import in this case.
This already happens for digital sales, such as those for games and software.
I suspect this change to the VAT rate will also apply to UK magazine subscriptions since periodicals are charged(PDF) 9% VAT in Ireland while they are 0% in the UK. If that’s the case it’s not worth it (An Post will charge €10 to deliver a magazine worth let’s say €6.) unless the seller is registered in the EU and charges VAT on the subscription.
