There are new tax changes on the way that will make it more expensive to buy goods online, when purchased from outside the European Union.
The Revenue Commissioners have warned that an exemption that previously discounted VAT on non-EU products under €22; will come to an end soon, possibly from July 1st, despite the purchase transaction having occurred before the aforementioned date.
Introduced by the European Commission, this new rule will be applicable in all EU member states to ensure that no products being imported from non-EU countries are given preferential VAT treatment compared with products that are bought from within the European Union.
This means that products that are being purchased online from countries outside the European Union, including Britain, will now be eligible for the same VAT rates regardless of their varied value.
Currently, if the cost of the goods you buy online, including transport, insurance and handling charges, is less than €22, then you do not have to pay VAT.
From July 1st next, people should be aware that these new tax changes could mean you will be liable for extra charges when any purchased products arrives in this country, prior to its delivery.
If you shop online in the future, you need to check carefully whether the advertised price of any goods also include all Irish tax and duty costs due; before a decision to purchase that particular item on your wish list, is contemplated.
Whilst we should all be trying to shop local, there’s certain small items that aren’t even available in the EU. Most recently I had to spend €6 on a IDE to sata converter from China. If I ever need to purchase one again, that’s €6+23% = €7.38 + €10 An post collection fee.