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How Brexit affects online buying Update 20th January

  • 03-01-2021 8:22pm
    Moderators, Business & Finance Moderators Posts: 13,137 mod whiterebel

    Update 20th January: Important: it looks like the Minimum collection of €6 is gone. When Value including Fright and insurance is under €22, VAT isn't collected.

    A very good thread from Sdanseo in the big thread over in Consumer issues.
    I’m locking this thread, as looking at the other one it is like Groundhog Day with the same questions being asked page after page.

    Amazon post-Brexit - what's the story?

    Simply put, you must now pay import fees in the form of VAT and duty where applicable to all imports from the UK. Period.
    VAT is currently 21% in Ireland and duty ranges from 0% to 50% but most goods fall under 20%. Duty is only charged where the total value exceeds €150 per delivery.
    Under the trade agreement, almost all consumer goods have no duty applicable. For terminology purposes, Duties and Tariffs are the same thing.
    You can check on the EC Taric website whether duty applies to the commodity you are importing:

    So what will you see in the Amazon basket? See some examples below.

    Firstly, until 1 July 2021 the Irish Government is not bothering to collect VAT due of under €22 per delivery.

    If you make a purchase of €22 and under which is NOT combined with another delivery, it is unlikely, albeit possible, that Amazon will charge you any VAT at all.
    You will pay the GBP price or the euro conversion at checkout, less the amount of GB VAT in the item price. GB VAT is 20%.
    For example, if you purchase an item that retails for £9.99, you will pay £8.33.

    Two important caveats on this:
    1) If you place multiple orders and Amazon combines these into one delivery - a frequent occurrence - you will be liable to VAT at the point of delivery if the total value exceeds €22.
    2) When calculating VAT payable, the amount considered includes freight charges. If you don't have prime, and the postage pushes the value to above €22, Amazon will add and collect Irish VAT.

    For all purchases with a total price including postage of €22 or more and for all purchases after 1 July 2021:

    The GBP price you see in the Amazon Store will reflect UK VAT included.
    When you add items to your basket and get to the checkout, Amazon will deduct UK VAT (20%) and add Irish VAT (21%) to the total. The Irish VAT will be listed as Import Fee Deposit.
    Remember that Irish VAT increases again to 23% at the start of March 2021.
    Sending to AddressPal in effect becomes a UK shipment, as it addressed to the UK. This may mean 20% UK VAT being added. An Post will still collect Irish VAT if over €6. Again you must add the AddressPal charges on to it.

    There are exceptions.

    Some goods are liable to duty as well as VAT, so the Import Fee Deposit amount will be higher.
    Some goods have lower VAT rates, e.g. books and shoes, so the Import Fee Deposit amount will be lower.
    Through the thread, we have also found a few examples where Amazon's accounting seems to be in error - this is to be expected. There will be the odd mistake. This is new to them too. Live chat is probably your best pal in these cases or else just don't order.

    Lastly, as I found out trying to order coffee pods - some items are now completely restricted such as plant based products. There will be some items you can no longer order. Unfortunately, they only way to deal with this is suck it up and move on. That's the reality of Brexit.


  • Other UK Suppliers

    If they collect Irish VAT, it will work the same as Amazon, and you won’t see any major difference.

    If they do not collect Irish VAT, or will not sell to you minus UK VAT, you will have to pay Irish VAT plus a customs clearance charge on top, to An Post. Using AddressPal will also mean it will need to be customs cleared. There is some uncertainty as to the An Post charge, whether is is 1% of value min €10, or €3.50.
    Calculations are the same as in the main Duty/VAT thread. Do not come on here looking for someone else to do the work for you, it is all there.

  • Second hand

    Treated the same as new. Subject to exactly the same rules was new.

  • Northern Ireland

    Buying directly from companies in Northern Ireland is the same as buying them in Ireland. No change with VAT or anything else.

    Exporters in the UK, who ship to Northern Ireland will have to become ‘trusted’ that their product will not end up in the EU. Do not ask how to get around this. It is not a loophole to be exploited. I believe the figure under which the customs declaration doesn’t need to be attached between the UK and Ni, is £135.00. For shipments over £135.00 they will need to have the customs declaration attached.

    This is why PM will probably not provide the service any more.

  • Update 20th January: Important: it looks like the Minimum collection of €6 is gone. When Value including Fright and insurance is under €22, VAT isn't collected.

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