Mandatory import VAT from 1 July 2021

masterboy123 · 13-04-2021 1:58pm #1

I just found this info. Any thoughts?

Note:

From 1 July 2021 import VAT will:

be payable on all goods entering the EU, irrespective of their value
and
always be collected, irrespective of the amount due.

https://www.revenue.ie/en/importing-vehicles-duty-free-allowances/buying-of-goods-online-for-personal-use/buying-goods-from-outside-the-eu.aspx

13-04-2021 1:59pm

Yes, this is known. Anything under £25 or whatever it is will no longer be VAT free from the likes of Amazon

vandriver · 13-04-2021 2:00pm

Thoughts...AliExpress and Wish are fecked.

masterboy123 · 13-04-2021 2:46pm

I am gonna order all my stuff now. This is going to be a big kick.

silver2020 · 15-04-2021 4:57pm

vandriver wrote: »

Thoughts...AliExpress and Wish are fecked.

combined with more realistic postal charges it really is the end of cheap tat from china

rock22 · 15-04-2021 5:38pm

Some items on Aliexpress are available from Eu countries, usually Spain or Czechia. i imagine more and more sellers will set up distributions centres in EU to remain competitive

whiterebel · 15-04-2021 5:41pm

The big exporters from Asia can set up to pay their VAT in the EU. It's probably the previously mentioned hike in postage that will do them more damage.

Sparkling Gamorreans · 27-06-2021 11:09am

I ordered a few cheap knock off collectible figures on Aliexpress which cost between €10-€20 individually with postage included (sent separately). I understand the exporters are putting a value of approximately $10 on the packages (didn't instruct them to do so, I checked after the fact). Stupidly I had completely forgotten about the 1 July 2021 removal of the €22 exemption. Does anyone know the appetite and viability as regards to An Post enforcing this from the get go? I am wondering if I can expect to be hit with 4 or 5 flat fees. Also wondering if they'll challenge the values.

On a separate note, does anyone know if Aliexpress intend to collect VAT for EU destination purchases from 1 July onwards? Would this be across the whole market place or on a seller by seller basis if they choose to comply? I can't find anything about their intentions online.

Caranica · 27-06-2021 11:58am

Most items on AliExpress now offer delivery from within the EU to get around this.

Masala · 27-06-2021 12:03pm

Is the 1st July an Irish thing or is it coming from the EU???

Feck it... it’s a small concession to us little people who like a bargain and who love waiting for ‘that package ‘ in the post.

I reckon An Post will see a major fall in business after the last year they put in.

Caranica · 27-06-2021 12:09pm

EU, was supposed to come in on January 1st but got pushed back 6 months

iba · 27-06-2021 12:34pm

Sparkling Gamorreans wrote: »

I ordered a few cheap knock off collectible figures on Aliexpress which cost between €10-€20 individually with postage included (sent separately). I understand the exporters are putting a value of approximately $10 on the packages (didn't instruct them to do so, I checked after the fact). Stupidly I had completely forgotten about the 1 July 2021 removal of the €22 exemption. Does anyone know the appetite and viability as regards to An Post enforcing this from the get go? I am wondering if I can expect to be hit with 4 or 5 flat fees. Also wondering if they'll challenge the values.

On a separate note, does anyone know if Aliexpress intend to collect VAT for EU destination purchases from 1 July onwards? Would this be across the whole market place or on a seller by seller basis if they choose to comply? I can't find anything about their intentions online.

Only a guess but my guess is that you will have to show the invoice rather than the value printed on the envelope.

Its a whole of EU thing. I'm hoping that Ali will just collect the VAT. When you buy something on Ali, I believe Ali holds the money until you confirm the order. Once you confirm the order, the money is then released by Ali to the individual seller

Sparkling Gamorreans · 27-06-2021 3:15pm

Has anyone heard what An Post's appetite is to enforce the change come Thursday?

Jim_Hodge · 27-06-2021 3:30pm

Sparkling Gamorreans wrote: »

Has anyone heard what An Post's appetite is to enforce the change come Thursday?

From their own website

From 1 July 2021: VAT & Customs Duties will be calculated/charged on all non-EU items (previously only items containing goods above €22) It is mandatory for An Post to collect these charges on behalf of Revenue. An Post is unable to deliver your item until this charge has been paid.

NinjaTruncs · 27-06-2021 3:35pm

According to this page AliExpress will be collecting VAT which will be a good thing as we won't get hit with collection fees from An Post.

https://service.aliexpress.com/page/knowledge?pageId=37&category=1000021915&knowledge=1060863305&language=en

Sparkling Gamorreans · 27-06-2021 3:51pm

Jim_Hodge wrote: »

From their own website

Thanks for providing the information. I know officially they are saying they will collect the VAT, I am wondering to what extent they will enforce this? Would they seek to collect VAT less than €1? Will they hold genuine gifts of even the smallest trinkets until VAT and flat fee are paid? It's an interesting development. In theory it removes any common sense discretion to weigh up a cost/benefit analysis of any given situation.

Atlantic Dawn · 27-06-2021 3:53pm

NinjaTruncs wrote: »

According to this page AliExpress will be collecting VAT which will be a good thing as we won't get hit with collection fees from An Post.

https://service.aliexpress.com/page/knowledge?pageId=37&category=1000021915&knowledge=1060863305&language=en

Yes it's the collection fee's rather than the fee's themselves that will be the major cost, hopefully more adapt the AliExpress approach.

Darc19 · 27-06-2021 4:21pm

Masala wrote: »

Is the 1st July an Irish thing or is it coming from the EU???

Feck it... it’s a small concession to us little people who like a bargain and who love waiting for ‘that package ‘ in the post.

I reckon An Post will see a major fall in business after the last year they put in.

Almost all of the Chinese rubbish from wish / Ali express etc are loss making for an post.

They will be extremely happy with this.

Their biggest customer, Amazon, pay all vat and duty and deliver all parcels to anpost so they are in effect domestic parcels.

And in any case, most of their business originates in Ireland

Jim_Hodge · 27-06-2021 5:43pm

Sparkling Gamorreans wrote: »

Thanks for providing the information. I know officially they are saying they will collect the VAT, I am wondering to what extent they will enforce this? Would they seek to collect VAT less than €1? Will they hold genuine gifts of even the smallest trinkets until VAT and flat fee are paid? It's an interesting development. In theory it removes any common sense discretion to weigh up a cost/benefit analysis of any given situation.

They'll also charge their collection cost regardless of the VAT amount. They're obliged to collect the tax and won't take the hit for it themselves. They'll make more with collection fees than they'd ever make just delivering cheap Chinese packages up to now, as they lost on them up to now.

iba · 27-06-2021 6:36pm

NinjaTruncs wrote: »

According to this page AliExpress will be collecting VAT which will be a good thing as we won't get hit with collection fees from An Post.

https://service.aliexpress.com/page/knowledge?pageId=37&category=1000021915&knowledge=1060863305&language=en

Well found. I thought this would be the case cause its the only way it could be done. And Ali is such a multi-billion company, its not mush hassle for them to upgrade their IT systems.

On the plus side, this will eradicate the €10 An Post delivery fee

iba · 27-06-2021 6:41pm

Darc19 wrote: »

Almost all of the Chinese rubbish from wish / Ali express etc are loss making for an post.

They will be extremely happy with this.

Their biggest customer, Amazon, pay all vat and duty and deliver all parcels to anpost so they are in effect domestic parcels.

And in any case, most of their business originates in Ireland

There are plenty of items for sale on Ali that are not rubbish; plenty of IT stuff, tech stuff eg. android boxes, laptops, HDMI cables, Cat cables, projectors, power banks, cameras. There are good and bad quality for everything. You pay for the quality you want. I've bought hundreds of items from Ali at a fraction of what they would cost here. And I would say only about 1% I've been unhappy with. For example, I recently bought some light fittings. Cost €5 on Ali, the exact same in Woodies sells for €25.

Jim_Hodge · 27-06-2021 7:32pm

iba wrote: »

There are plenty of items for sale on Ali that are not rubbish; plenty of IT stuff, tech stuff eg. android boxes, laptops, HDMI cables, Cat cables, projectors, power banks, cameras. There are good and bad quality for everything. You pay for the quality you want. I've bought hundreds of items from Ali at a fraction of what they would cost here. And I would say only about 1% I've been unhappy with. For example, I recently bought some light fittings. Cost €5 on Ali, the exact same in Woodies sells for €25.

That doesn't change the salient point of the post: An Post lose money delivering this Chinese stuff and would be happy to see volumes decrease or to get an admin fee for collecting the duty on them.

iba · 27-06-2021 8:08pm

Jim_Hodge wrote: »

That doesn't change the salient point of the post: An Post lose money delivering this Chinese stuff and would be happy to see volumes decrease or to get an admin fee for collecting the duty on them.

Totally agree, has no relevance in the thread so shouldn't have been stated in the first place.

With regards An Post, my understanding is, it will still be delivering the products but will no longer be able to collect €10 for doing so. Perhaps quantities will decrease though (would love to know if amazon.co.uk deliveries to the State has decreased since 01 Jan.).

Caranica · 27-06-2021 8:22pm

iba wrote: »

Perhaps quantities will decrease though (would love to know if amazon.co.uk deliveries to the State has decreased since 01 Jan.).

I've bought way more from Amazon in the past 6 months than in any full year to date. Mostly stuff under €22. If you've Prime there were plenty of absolute steals

Sparkling Gamorreans · 27-06-2021 8:58pm

Jim_Hodge wrote: »

They'll also charge their collection cost regardless of the VAT amount. They're obliged to collect the tax and won't take the hit for it themselves. They'll make more with collection fees than they'd ever make just delivering cheap Chinese packages up to now, as they lost on them up to now.

I absolutely get this. I'm just asking if anyone is aware either anecdotally or by way of media reporting as to whether An Post in practice intend to pursue this to the fullest extent from 1 July. I rarely order outside the EU but I've heard before they'll sometimes not bother or miss packages with values higher than the threshold.

That's a good spot by NinjaTruncs. I hadn't been able to find that info definitively anywhere before. There's obviously now an interim period where people have bought things prior to Ali collecting VAT but will land after 30 June. I guess I'll find out if I've been caught in the next month.

whiterebel · 27-06-2021 9:12pm

sugarman wrote: »

An Posts handling fee has already been lowered to €3.50.

Yes, they lowered it in January

iba · 27-06-2021 10:50pm

Sparkling Gamorreans wrote: »

I absolutely get this. I'm just asking if anyone is aware either anecdotally or by way of media reporting as to whether An Post in practice intend to pursue this to the fullest extent from 1 July. I rarely order outside the EU but I've heard before they'll sometimes not bother or miss packages with values higher than the threshold.

That's a good spot by NinjaTruncs. I hadn't been able to find that info definitively anywhere before. There's obviously now an interim period where people have bought things prior to Ali collecting VAT but will land after 30 June. I guess I'll find out if I've been caught in the next month.

Not sure I fully understand, but An Post have for years collected VAT on goods imported from outside the EU if the value is over I believe 22 euro (I think a further 5 euro though can be added on to this bringing the value up to 27 euro).

However lots of packages get through where the item exceeds this price and VAT is not collected. For example, if I buy something from outside the EU and the price is over 27 Euro, I take into consideration that I'd be hit with €10 euro (now €3.50 (I didn't know it had been reduced)) An Post fee plus the VAT. when I'm weighing up options where to buy from. If it gets through and I dont get charged, happy days. But if it gets stopped, I am expecting it and I've factored that into my decision before buying. 99 times out of 100 though, I'd only be buying something for less than 27 Euro though, so no VAT and no An Post fee. The times that I have had packages stopped, Ive had to send An Post by email a pic/copy of the invoice. An Post then write back saying I owe xx in VAT plus the €10 and that it will be collected by it upon delivery. I agree, they come and deliver and I pay the money to the post man.

mondeoman72 · 27-06-2021 11:00pm

I cannot see this happening. The amount of little small packages coming in, I do not see them doing it. Of course they will say they are, but it is just not possible. We will see.

VG31 · 27-06-2021 11:02pm

mondeoman72 wrote: »

I cannot see this happening. The amount of little small packages coming in, I do not see them doing it. Of course they will say they are, but it is just not possible. We will see.

I've had 4 packages over €22 so far this year, 3 from the UK and one from the US. I didn't have to pay VAT on any of them. I'd be very surprised if they start checking every package.

mondeoman72 · 27-06-2021 11:09pm

VG31 wrote: »

I've had 4 packages over €22 so far this year, 3 from the UK and one from the US. I didn't have to pay VAT on any of them. I'd be very surprised if they start checking every package.

I agree. The sheer amount of stuff coming in makes it an impossibility. What they say and what they do may differ considerably.

Sparkling Gamorreans · 27-06-2021 11:46pm

iba wrote: »

Not sure I fully understand, but An Post have for years collected VAT on goods imported from outside the EU if the value is over I believe 22 euro (I think a further 5 euro though can be added on to this bringing the value up to 27 euro).

Apologies if I haven't explained clearly enough. I understand how it has been to date and how it is technically supposed to be going forward. I was asking if anyone know the likelihood of this change being effectively implemented by An Post. I'm wondering if An Post are resourced accordingly from a personnel and infrastructural perspective to start holding and charging on a significantly higher volume of packages and if indeed they have the appetite to do so. The posts subsequent to this one speculate not very likely. I suppose we'll find out soon enough.

iba · 28-06-2021 12:45am

Sparkling Gamorreans wrote: »

Apologies if I haven't explained clearly enough. I understand how it has been to date and how it is technically supposed to be going forward. I was asking if anyone know the likelihood of this change being effectively implemented by An Post. I'm wondering if An Post are resourced accordingly from a personnel and infrastructural perspective to start holding and charging on a significantly higher volume of packages and if indeed they have the appetite to do so. The posts subsequent to this one speculate not very likely. I suppose we'll find out soon enough.

Yeah exactly, there are just too many to check. But some are checked and some will continue to be checked. But I'm not getting how this will affect An Post, surely they will just continue in the same vein as before; randomly checking some. The only difference being now is when they check and you email them the invoice, they will see that the VAT has been paid and will deliver the item without asking the customer to pay upon receipt.

Having said that, perhaps since they know that the VAT has now been paid on packages, or the majority of packages, coming in from China, they wont check Chinese post and concentrate their efforts elsewhere.

whiterebel · 30-06-2021 4:55pm

Email received from An Post:

From July 1st 2021, VAT and customs charges will apply when you shop online outside of the EU. We’re here to help you understand these changes and continue to invest in new technology to make online shopping easy.

What does this mean?
VAT and customs charges already apply to AddressPal purchases from Great Britain and USA with a value greater than €22. From July 1st the VAT exemption of €22 will be removed. VAT and customs charges will now apply to all applicable items.

How will I know if I have to pay a charge?
If Irish Revenue have applied VAT and customs charges to your AddressPal order, An Post will send you an email and text message providing a unique reference number specific to your order detailing the charges that have been applied.

How can I pay a customs charge?
The charges can be paid simply at anpost.com/PayCustoms or at any post office using your unique reference number before we deliver your parcel.

amber2 · 05-07-2021 2:07pm

I bought some bits on AliExpress last month. 9 different transactions all for about €2/€3 each, which I am awaiting delivery of. Will I now get charged Vat on these as well as the An Post Collection charge.

Don’t mind the Vat but with the collection charge on top it’s probably best to refuse them and reorder.

Jim_Hodge · 05-07-2021 6:13pm

amber2 wrote: »

I bought some bits on AliExpress last month. 9 different transactions all for about €2/€3 each, which I am awaiting delivery of. Will I now get charged Vat on these as well as the An Post Collection charge.

Don’t mind the Vat but with the collection charge on top it’s probably best to refuse them and reorder.

There's no reason why, if they are separate packages, that you won't charge handling on each, as An Post have to do the admin for Revenue on each one separately.

Sparkling Gamorreans · 05-07-2021 9:51pm

amber2 wrote: »

I bought some bits on AliExpress last month. 9 different transactions all for about €2/€3 each, which I am awaiting delivery of. Will I now get charged Vat on these as well as the An Post Collection charge.

Don’t mind the Vat but with the collection charge on top it’s probably best to refuse them and reorder.

If they decide to apply the VAT then it seems that the handling fee is €3.50 per item. I too am waiting for some items too come from AliExpress that might be caught. Anyone got stung yet on items that would have been no issue last month?

vandriver · 06-07-2021 7:02am

Sparkling Gamorreans wrote: »

If they decide to apply the VAT then it seems that the handling fee is €3.50 per item. I too am waiting for some items too come from AliExpress that might be caught. Anyone got stung yet on items that would have been no issue last month?

This change in vat rules has been signalled for at least 6 months.

skinny90 · 06-07-2021 8:26am

I’ve an order coming with SF

Since the 27th of June it’s in Ireland but still in transit with the this

Shipment arrive at 【Cross border service point in Dublin, Ireland】

Seeing as it arrived on the 27th am I still subject to VAT?

sydthebeat · 06-07-2021 8:38am

I received an Ali express delivery this morning. Order value €12.41

No vat applied.

Maybe this was due to the order being made on the 10th June?

amber2 · 06-07-2021 11:24am

sydthebeat wrote: »

I received an Ali express delivery this morning. Order value €12.41

No vat applied.

Maybe this was due to the order being made on the 10th June?

Same received one item today from China value on it was US$3, postman delivered so I assume I’d have heard about it if there was charges. Again was ordered in early June.

Sparkling Gamorreans · 06-07-2021 12:29pm

vandriver wrote: »

This change in vat rules has been signalled for at least 6 months.

That's not being queried here. What's being queried is the appetite for enforcing this day to day. As per the last few posts it appears at least some low value items can or will slip through the cracks.

Sparkling Gamorreans · 21-07-2021 8:15pm

Received a delivery today from An Post from something that cost around €16 ordered on Aliexpress back before they collected VAT. It wasn't stopped by customs and no VAT or processing/handling charges.

gaz22 · 27-07-2021 3:58pm

Does anyone know if I will be charged VAT on purchases coming from Turkey? Turkey isn't in the EU but is in a customs union with the EU. The value of the item is €55. Wikipedia says "Goods may travel between the two entities without any customs restrictions" but I can't find anything on the Revenue or Europa websites.

Thanks.

Atlantic Dawn · 27-07-2021 4:19pm

I've had 2 deliveries of packages from UK since 1st July that were sub €10 in value, didn't have to pay VAT on either.

Sparkling Gamorreans · 27-07-2021 7:45pm

I've now received several packages paid for in June with no VAT paid at that time and all have come through no problem. I wonder if An Post have quietly decided not to follow the change in practice or are allowing a soft interim period before getting tighter.

Jim_Hodge · 27-07-2021 9:48pm

https://www.boards.ie/discussion/comment/117670177#Comment_117670177

It's not An Post's decision. It's down to Customs and Revenue.

phester28 · 27-07-2021 10:06pm

bought from aliexpress who charged Irish Vat, Are IOSS registered and CN22 on each label. Package stopped by an post and customs levied on the amount already including vat. 1 hour on hold and told I have to email in my request.

Got a response that they are very busy and a reply may take several days. Meanwhile I have 6 days to pay or my package will be returned. Item was 26 euro including vat

Sparkling Gamorreans · 05-08-2021 11:35am

https://www.boards.ie/discussion/comment/117670859#Comment_117670859

How did that pan out for you in the end?

Fishingmad2013 · 19-08-2021 10:44pm

What's the story with second hand goods being sent over from the states? Will these parcels be checked and if so how would they calculate the customs charges?

Thanks

reubenreuben · 25-08-2021 10:24pm

Does this apply for an item that is being repaired in England and delivered to Ireland?

Is the customs/vat charge just on the repair costs or the value of the item?

I already own the item, I'm just getting it repaired in England.

Jim_Hodge · 26-08-2021 8:49am

https://www.boards.ie/discussion/comment/117803982#Comment_117803982

The repairer needs to show on the customs declaration that it's a repair.

Mandatory import VAT from 1 July 2021

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