Revenue’s VAT reminder for online shoppers

Revenue has confirmed that new VAT rules that affect online shoppers come into effect from today (1 July).

Maureen Dalton (Principal Officer in Revenue’s Customs Division) confirmed that, from today, all goods arriving into Ireland from non-EU countries, regardless of their value, will be subject to VAT. This includes goods from Britain, but not those from Northern Ireland.

As a result, the current VAT exemption for imported goods with a value of €22 or less has ended.

“The applicable VAT rate to these goods will be the relevant rate that would apply if the goods were purchased in Ireland,” Ms Dalton said.

She reminded shoppers that these changes may mean that additional charges can apply once the purchased goods arrive in Ireland for delivery.

New scheme for suppliers

Revenue is advising customers, before deciding to buy goods, to check whether the advertised price includes all tax and duty costs due.

Some suppliers operate a ‘duty-paid’ model, meaning that the total price paid for the goods at the time of purchase will generally include Irish VAT and any other duties due. In this case, there will be no further Revenue charges.

“Where this is not the case, the amount of VAT and any duties due must be paid to the postal service or parcel operator before the goods are delivered,” Ms Dalton warned.

In recognition of the VAT-rule changes, a special scheme called the Import One-Stop Shop (IOSS) will also come into operation tomorrow. This allows suppliers to pay the VAT on behalf of consumers.

Revenue says that the use of IOSS is not mandatory, but it provides suppliers with a simpler way of declaring and paying import VAT on low-value consignments.