UK & AliExpress purchases get more expensive after 1st July

bpmurray

From 1st July, Ireland will add VAT to all imports, including those that are less than €22 which have been exempt from VAT up to now. That's all OK, and isn't particularly surprising.

What is annoying, though, is An Post's reaction. They have to collect the VAT on deliveries for Revenue, and their web page says:

A handling fee of up to a maximum charge of €10 is charged by An Post for customs clearance of parcels imported from countries outside the EU.

However, I did a little digging, i.e. I asked An Post on Twitter (@Postvox) for a precise list, since "up to" was clearly pretty unclear, and they pointed me to this document, which says that their Customs Clearance Fee is:

1% of the value of the contents of the Postal Packet subject to a minimum of €10.00

In other words, their web site is completely misleading, with the truth hidden in an embedded document. Basically, if you purchase something from AliExpress for €5, you'll have to pay 23% VAT of €1.15 and a handling charge of €10 to An Post, i.e. 200%.

While it could be argued that there's a cost involved with processing such charges, since An Post allow it to be paid online there's actually zero justification for the high rate of charge - %1 would be fair and would also give them a profit.

I have currently 3 packages from AliExpress heading this way. If they don't arrive by 1st July, I am certainly not paying an extra €10 on each of three €2 items. I imagine processing that will be much more expensive than charging a more reasonable price.

AllForIt

You are kidding me. That is outragous. I buy loads of stuff from alliexpress in the 1 to 5 euro price range. A tenner on top then forget it. Maybe thats the point of it. Are you sure this is right? If it is I'll order stuff for €1 or less free shipping and when they come looking for their tenner I'll tell them to get lost.

Ubbquittious

The Chinese saw this coming a mile away so now they are opening big massive warehouses in betrodden, impoverished parts of Eastern Europe and send all the containers to there, then the stuff actually gets posted from within Europe.

Gregor Samsa

This was originally supposed to come in on January 1st this year. It was postponed until March as systems (at the EU level, not specifically Ireland) were not in place, and then postponed again until June.

For any of the big sites that charge VAT up front, the only difference will be that you’ll be charged 23% VAT. You’ll only face a handling charge from An Post (or any other courier) if VAT wasn’t paid already.

bpmurray

bpmurray wrote: »

you'll have to pay 23% VAT of €1.15 and a handling charge of €10 to An Post,

That size of handling charge is fairly standard. USPS in America charge an $11.50 flat customs fee, Royal Mail in the UK charge an £8 flat customs fee etc. I think the UPS fee in Ireland is actually something like €16.

bpmurray

Deleted User wrote: »

That size of handling charge is fairly standard. USPS in America charge an $11.50 flat customs fee, Royal Mail in the UK charge an £8 flat customs fee etc. I think the UPS fee in Ireland is actually something like €16.

The difference is that most of these are collected in person, while An Post has an online payment solution where €10 is an outrageous level of charge.

bpmurray

bpmurray wrote: »

The difference is that most of these are collected in person, while An Post has an online payment solution where €10 is an outrageous level of charge.

All of the ones that I listed can be paid for online.

It's a very consistent charge across the board. An Post's fee size is nothing unusual and is in fact one of the cheaper ones in Ireland.

sydthebeat

Can we simply refuse at accept at the door??

sydthebeat

sydthebeat wrote: »

Can we simply refuse at accept at the door??

An Post won't deliver it to your door until you've paid the customs fee online or in the post office.

sydthebeat

[Deleted User] wrote: »

An Post won't deliver it to your door until you've paid the customs fee online or in the post office.

Fine. That won't be paid on a low value item by me anyway

Tom Mann Centuria

Ubbquittious wrote: »

The Chinese saw this coming a mile away so now they are opening big massive warehouses in betrodden, impoverished parts of Eastern Europe and send all the containers to there, then the stuff actually gets posted from within Europe.

Yeah that's happened with the last couple of things I got. Final postal sticker has been the Netherlands post but I'm sure it started its merry European adventure elsewhere.

crooked cockney villain

Online shopping baffles me. While I've never looked at Ali Express the price of branded clothes on Zalondo, ASOS, and the other big ones is staggeringly more expensive than your local JD Sports, Sports Direct etc etc, and that's before you pay for postage. The only cheap one is M and M Direct.

dxhound2005

The thread title is very confusing. The charge has always existed, and any changes will apply to all companies and all countries liable.

bpmurray

dxhound2005 wrote: »

The thread title is very confusing. The charge has always existed, and any changes will apply to all companies and all countries liable.

The issue is that up to now, anything imported from outside the EU that had a value of less than €22 was VAT free. That all changes on 1st July where all imports will be liable to VAT. Whoever is the delivery agent is required to collect the VAT, in this case An Post, and they have a minimum charge of €10, not a maximum of €10 as their web site claims.

dxhound2005

bpmurray wrote: »

The issue is that up to now, anything imported from outside the EU that had a value of less than €22 was VAT free. That all changes on 1st July where all imports will be liable to VAT. Whoever is the delivery agent is required to collect the VAT, in this case An Post, and they have a minimum charge of €10, not a maximum of €10 as their web site claims.

You failed to point out that it is not only An Post which applies such charges. You specifically used the phrase.

What is annoying, though, is An Post's reaction.

You have cleared up both omissions in your new post. I just hope that nobody has made an order from a company other than Ali thinking that they will not have to pay import charges.

Coillte_Bhoy

How will this charge actually be collected by An Post?

Capt'n Midnight

crooked cockney villain wrote: »

Online shopping baffles me. While I've never looked at Ali Express the price of branded clothes on Zalondo, ASOS, and the other big ones is staggeringly more expensive than your local JD Sports, Sports Direct etc etc, and that's before you pay for postage. The only cheap one is M and M Direct.

Now do the same for unbranded electronic gizmos and components.

Some poundshop crap can be posted to your door for less that it costs to buy it in the poundshop.