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VAT exemption on items under €22 from outside EU disappearing on 1 July 2021

  • #2
    Registered Users Posts: 16,801 ✭✭✭✭ glasso


    Of course this was signposted but date is coming up now

    so may be prudent not to order anything with long delivery times in if it is likely to arrive after July 1 or you may be hit with a collection fee and the requisite VAT.
    The new rules will apply to all goods delivered from outside the European Union after July 1st, even if the transaction occurred online before then.

    I wonder are sites like Aliexpress etc moving to a duty paid model - one would expect so as this is EU-wide, not just Ireland.

    https://www.irishtimes.com/business/retail-and-services/revenue-warns-online-shoppers-of-price-increase-due-to-vat-change-1.4580123

    However this quote from a revenue official confuses me - if VAT and duty paid in advance what additional charges are due to the postage provider?
    “If the supplier is operating a duty paid model, the total price paid for the goods at the time of purchase will generally include Irish VAT and any duties due, meaning no further Revenue charges will arise. However... the consumer must then pay any additional charges to the postal service or parcel operator before the goods are delivered.”

    buymeacoffee.com/glassopy



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Comments

  • #2


    of course it also applies to the case of Amazon UK (most especially if you have Amazon Prime) to buy items under the amount to get a nice discount (UK Vat will be removed and no Irish VAT added) before it runs out at the end of June 2021

    (doesn't work with every item but mostly will if fulfilled by Amazon - a quick way to test is to click "buy now" on an item to see if the price reduces)

    buymeacoffee.com/glassopy



  • #2


    Can't see the article in the Times, but I wonder has it been taken out of context. From the revenue site - https://www.revenue.ie/en/corporate/press-office/press-releases/2021/pr-053121-revenue-upcoming-vat-rule-goods-non-EU-countries.aspx
    “If you shop online, you need to check whether the advertised price includes all tax and duty costs due before you make your decision to buy the goods concerned. If the supplier is operating a duty paid model, the total price paid for the goods at the time of purchase will generally include Irish VAT and any duties due meaning no further Revenue charges will arise on delivery.

    However, where this is not the case, the amount of VAT and any duties due will be calculated by Revenue based on the information provided on the customs declaration. This is normally completed by the postal service or parcel operator delivering the goods. The consumer must then pay any additional charges to the postal service or parcel operator before the goods are delivered.”

    Which is just what it is now. Everything done at the point of sale, OR, An Post/DPD/DHL/etc do the admin, and bung on their admin charges.


  • #2


    That is the current situation. 1st July the lower limit is being removed EU wide. If the seller doesn’t account for VAT, it will be cleared and charges paid.


  • #2


    From 1st July the €22.00 exemption is gone, is that the end of the imports from Aliexpress etc, as I don't see many having EU warehouses unfortunately.


  • #2


    Apologies Mods, I see there is already a thread on this (I did look but didn't see it :D)


  • #2


    No many Aliexpress places opening EU warehouses then? Is the party over?

    How much are An Post charging for Customs Clearance?


  • #2


    vicwatson wrote: »
    No many Aliexpress places opening EU warehouses then? Is the party over?

    How much are An Post charging for Customs Clearance?

    €10, same as the rest for the handling of the process.

    DHL are very poor, make up their numbers and then if you query they say it costs 50e to recalc? absolute sham!

    I have no problem paying the taxes due if buying and buy with that in mind, but when the couriers make it up, ie in my case add on postage (for 100e!!) to an price on invoice that states includes postage and there is no recourse as they recourse costs more than paying it I do have a problem with.

    Would rather some online system, that the delivery agents scan package in and you have X number of days to pay online direct to revenue with the invoice as support for the payment or the courier returns to sender the package.


  • #2


    vicwatson wrote: »
    No many Aliexpress places opening EU warehouses then? Is the party over?

    How much are An Post charging for Customs Clearance?

    AliExpress is a market place like eBay, they don't own any warehouses. It's full of thousands of individual sellers, some would be operating from warehouses, some from a physical shop, some from a garage or shed and others from home etc..

    Bigger sellers already have warehouses in Europe, but for some reason very few provide delivery to Ireland.

    As it stands it looks like the party is over.

    Thankfully Custom chargers have been reduced to €3.50 from €10 by An Post, so not the worst if you need something specific you can't find elsewhere.


  • #2


    eoferrall wrote: »
    €10, same as the rest for the handling of the process.

    DHL are very poor, make up their numbers and then if you query they say it costs 50e to recalc? absolute sham!

    I have no problem paying the taxes due if buying and buy with that in mind, but when the couriers make it up, ie in my case add on postage (for 100e!!) to an price on invoice that states includes postage and there is no recourse as they recourse costs more than paying it I do have a problem with.

    I get a regular delivery from a company based out of Hong Kong who use DHL and have never had any issues with them re. Import Charges. DHL work off of the numbers that are submitted by the sender, if the sender doesn't submit then that's entirely on the sender, and DHL use the rules that revenue set of the standard cost of sending that package to the country of origin less 30%.

    What do the Entry Declaration and the Single Administrative Document have listed under freight when you downloaded them from the DHL payments page?
    eoferrall wrote: »
    Would rather some online system, that the delivery agents scan package in and you have X number of days to pay online direct to revenue with the invoice as support for the payment or the courier returns to sender the package.

    Who assesses what VAT and Duty, if any, is required under this system?


  • #2


    Will Amazon have to make some declared calculation of the estimated shipping cost on the package if you have 'free' delivery via Prime?


  • #2


    Will Amazon have to make some declared calculation of the estimated shipping cost on the package if you have 'free' delivery via Prime?

    They do already.


  • #2


    whiterebel wrote: »
    They do already.


    But seeing as it could be completely variable on a month to month basis how would they do this, I might order 10 items this month and only a single item next month. The proportion of my Prime subscription that went toward each delivery would be completely different and only known when a full month had passed where items would already have been delivered and too late to then calculate on these items.


  • #2


    They add on an amount for freight, calculate the VAT on that and then take the freight off it again.


  • #2


    I order some gifts occasionally for delivery to people living in Australia from Aliexpress.

    Aliexpress for the last while add on Australian VAT (which is only 10%) at payment to the price of item when it's an Australian address and that's it - done - no additional "collection" charge. The VAT is paid to Australia.

    I wonder if there is any chance of that happening for Ireland

    Wishful thinking probably.

    But that is effectively is what is happening with Amazon UK really I suppose.

    But also An Post are getting €€€ from Amazon for delivery whereas the Chinese items provide pretty much nothing for An Post and indeed An Post HATE the stuff coming from China so probably would not want this system....

    But surely Aliexpress have looked into this considering so much of Europe is affected here.

    buymeacoffee.com/glassopy



  • #2


    We get one more Prime day before July 1st. :)


  • #2


    sugarman wrote: »
    AliExpress is a market place like eBay, they don't own any warehouses. It's full of thousands of individual sellers, some would be operating from warehouses, some from a physical shop, some from a garage or shed and others from home etc..

    Bigger sellers already have warehouses in Europe, but for some reason very few provide delivery to Ireland.

    As it stands it looks like the party is over.

    Thankfully Custom chargers have been reduced to €3.50 from €10 by An Post, so not the worst if you need something specific you can't find elsewhere.

    What I meant by warehouse is resellers I guess

    Oh so €3.50 now and not €10.00 for clearance


  • #2


    whiterebel wrote: »
    They add on an amount for freight, calculate the VAT on that and then take the freight off it again.

    It looks like that is how it is handled for someone who doesn't have Prime but is spending more than £20 to get free delivery, but if someone does have prime then there is no "promotion disscount" shown of -£6.00.

    Take this toaster - amazon.co.uk/Breville-VTT853-Lustra-Toaster-Stainless/dp/B079SFP7JB

    On a "Prime" account:

    Order Summary
    Items: GBP 32.50
    Postage & Packing: GBP 0.00
    Import Fees Deposit: GBP 7.48
    Order Total: GBP 39.98

    On a non-prime account:

    Order Summary
    Items: £32.50
    Postage & Packing: £6.00
    Import Fees Deposit: £8.86
    Total: £47.36
    Promotion Applied: -£6.00
    Order Total: £41.36


  • #2


    Maybe they used to do it, I haven't been buying much lately, so hadn't noticed. Maybe they got the ok from Revenue to change it. It seems strange though, not to have to account for it per shipment.


  • #2


    I get a regular delivery from a company based out of Hong Kong who use DHL and have never had any issues with them re. Import Charges. DHL work off of the numbers that are submitted by the sender, if the sender doesn't submit then that's entirely on the sender, and DHL use the rules that revenue set of the standard cost of sending that package to the country of origin less 30%.

    What do the Entry Declaration and the Single Administrative Document have listed under freight when you downloaded them from the DHL payments page?


    they opening admitted that they did not see the shipping on the invoice details and put in their standard charge... 100e!? in the end they let it go and revised, but it took a lot of interaction.

    Who assesses what VAT and Duty, if any, is required under this system?

    don't see it as that complicated, the system only needs to ask a few questions/get amounts input and you upload invoice as support, then the webpage programming gives you the charge to pay. the invoice allows revenue to spot check.

    Yes, someone could make up an invoice, but how is that any different to now where sellers will provide fake invoices for goods shipped.


  • #2


    I'm currently considering ordering from a shop in UK. Shipping included my order would be around 19 euros. Still unsure if I will though since orders to Ireland at the moment deliver within 15 days via standard mail.

    I have to ask the seller whether the price has VAT included in it but not sure they care to bother with it. I have always ordered things with either the VAT included or not applicable so not sure how this happens in practice. Does An Post contact the recipient before the delivery or how does it work? I don't expect the mailman to be asking for money before handing over the parcel? It might be easier to order from somewhere else in Europe (could not find anything remotely ok here in Ireland, sadly) but the product itself (plus shipping) would be more expensive everywhere I looked.


  • #2


    An pPost usually do require money before delivery.


  • #2


    I'm currently considering ordering from a shop in UK. Shipping included my order would be around 19 euros. Still unsure if I will though since orders to Ireland at the moment deliver within 15 days via standard mail.

    I have to ask the seller whether the price has VAT included in it but not sure they care to bother with it. I have always ordered things with either the VAT included or not applicable so not sure how this happens in practice. Does An Post contact the recipient before the delivery or how does it work? I don't expect the mailman to be asking for money before handing over the parcel? It might be easier to order from somewhere else in Europe (could not find anything remotely ok here in Ireland, sadly) but the product itself (plus shipping) would be more expensive everywhere I looked.

    I've had 5 or 6 packages sent from the UK this year by Royal Mail which were over €22 but An Post didn't ask for payment on any of them.

    There's no guarantees of course but low values items seem likely to get through.


  • #2


    So I was considering placing an order from China which will cost about €15. The order obviously wont arrive until well after July 1st. Would customs charges be applicable?


  • #2


    Yes, thats the plan


  • #2


    whiterebel wrote: »
    Yes, thats the plan
    Thanks. Any idea what charges would be on a €15 order?


  • #2


    muffler wrote: »
    Thanks. Any idea what charges would be on a €15 order?

    23% on price plus postage
    Plus an post charge 3.50 (or is it still €10)
    So about 7 euro


  • #2


    Would i be right in assuming that if a package from China is in the Netherlands before July 1st then we won't have to pay?


  • #2


    Will this affect Amazon purchases or is it business as usual? i.e. they sort out any charges at checkout. No need for you to interact with anPost.


  • #2


    Will this affect Amazon purchases or is it business as usual? i.e. they sort out any charges at checkout. No need for you to interact with anPost.

    correct - you won't have to do anything beyond paying the amazon uk checkout price.

    if you have amazon prime and want to buy some items under 19£ or so then do so before the end of June as you'll get them VAT free (most items fulfilled by Amazon)

    order them individually or at least keep the total under that amount

    buymeacoffee.com/glassopy



  • #2


    Forgot about this and made a 21 euro order from lightinthebox earlier this week. Interesting to see how this will work out.


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