Online shoppers beware
Revenue has issued a warning to online shoppers in Ireland to be wary of hidden VAT and customs charges when buying from outside of the EU.
Goods purchased from non-EU countries (including Great Britain but not Northern Ireland) are regarded as imports and the responsibility for paying VAT, customs duties and other charges generally lies with the end-consumer.
Since 1 July 2021, VAT is charged on all goods, regardless of their value (previously there was a €22 de-minimis threshold). Where a purchase costs more than €150 (including delivery charges), customs duties can also arise.
In a press statement on the matter, Revenue stated:
"In some instances, the supplier may operate a duty paid model, where the total advertised price for the goods at the time of purchase includes Irish VAT and duties 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 payable when the goods arrive in Ireland. You will have to pay these charges to the postal service or parcel operator before the goods are delivered."
The Trade and Cooperation Agreement reached between the EU and UK does facilitate the elimination of customs duties but only on goods that are made in either jurisdiction.
Revenue concluded its statement by saying:
“Consumers should be aware that no customs formalities apply when shopping online from Ireland or other EU countries. However, if shopping online from a non-EU country, consumers should be aware that where the price of the goods advertised seems attractively low, this may be because tax and duty are not reflected in the price advertised. So, it’s wise to be certain about the real cost of a product before going ahead with ordering online. Consumers also need to remember that, separate to import taxes and duties, it is normal practice for parcel operators to also charge an administration fee. Administration fees can vary so should be checked by consumers before they make their purchase.”
Latest eCustoms notifications issued by Revenue
In the past week, Revenue has issued a number of eCustoms notifications which we have summarised below.
- Notification 54/2021 sets out updated guidance when using customs special procedures: H3 Temporary Admission and H4 Inward Processing.
- Notification 55/2021 lists out the Customs and Excise (C&E) reports that are available on Revenue’s Online Service (ROS).
- Notification 56/2021 sets out the newly added 6-digit HS Commodity Codes which can be declared on the H7 import declaration.
Rest of World to Northern Ireland declarations must now be made via the CDS
HMRC has issued an important reminder about the change to using the Customs Declaration Service (CDS) for Rest of World to Northern Ireland imports from 31 October 2021. The message from HMRC is as follows:
“We have heard the concerns some of you have raised on behalf of your members about readiness for this change, and the challenges of using the TSS [Trader Support Service] for imports to NI where they are not ready to use CDS. Whilst we understand the concerns about the potential for disruption to trade, we have worked closely with declarants to ensure they are ready. In addition, the TSS has proactively reached out to declarants to assist them in adopting their service.
The CDS team and TSS team are ready to support declarants with the new processes, and your members should use the relevant helplines if they need support with declarations. Please let us know if your members are experiencing issues that cannot be resolved through these channels and we will do what we can to offer additional help and support.”
Trader Support Service (TSS) outage – advance notice
There will be changes made to the TSS systems on 27 November. As a result, you will not be able to submit declarations between 21:30 on 27 November 2021 and 03:30 on 28 November 2021. For any issues, readers are being advised to call the contact centre on 0800 060 8888.
Agents, intermediaries and hauliers can now use the new ‘Act as’ facility in TSS
If you are an agent, intermediary or a haulier, you can now use the new ‘Act as’ facility in the TSS API to close supplementary declarations on behalf of your traders. This is reported to be a significant enhancement to the system.
The upload API automates the uploading of information that is required to update and submit several customs declarations at the same time.
If you are an agent, intermediary or a haulier, you can now use the new ‘Act as’ facility in the TSS API to close supplementary declarations on behalf of your traders. This is reported to be a significant enhancement to the system.
Read more
Other updates to TSS since October 2021
- A list of supplementary declarations can be produced irrespective of status
- Supplementary declaration reference numbers can be reconciled with simplified frontier declarations and entry declaration numbers
- Goods movement information can be read from the supplementary declaration
Read more
Upcoming enhancements – ability to submit a simplified frontier declaration without generating a supplementary declaration
TSS will soon allow traders to submit a simplified frontier declaration (SFD) without needing to generate a supplementary declaration (SDI) at the same time, but only in certain scenarios. These scenarios are:
When traders use their own customs freight simplified procedures (CFSP) authorisation
When traders are using their own CFSP and are moving goods using the customs special procedure ‘Customs Warehousing’ and using the procedure code ‘71xx’
The benefits to traders are:
- A reduction in workload where supplementary declaration processing is not required
- The expanded support that the TSS system will provide for these processes
To make use of this new feature, traders should add their own CFSP authorisation number to their company profile in TSS.
More guidance will be available via the NI Customs Trade Academy (NICTA) website in the coming weeks.
Latest Trader Support Service Bulletin
The 53rd edition of the TSS Bulletin includes more detail on all of the above stories as well as reminding readers that the TSS is now supporting goods movements from Rest of World (excluding the EU) into Northern Ireland via inventory linked ports (ILP) into Northern Ireland. Read the Bulletin.
Guidance and webinars on GOV.UK
For organisations that trade with the EU, sign up here for upcoming webinars to learn more about UK transition.
The Cabinet Office has published recordings and videos that outline in more technical detail the new rules for moving goods to and from the EU. For more information, click here.
Various dates – A calendar of upcoming webinars, from Cabinet Office, for organisations that trade with the EU is available here. Topics include importing, trader responsibilities, exporting and more.
Upcoming HMRC Brexit webinars:
Various dates – Completing customs declarations: an overview. Register here.
Various dates – Trader responsibilities when using an intermediary. Register here.
Various dates – Importing: preparing to make your supplementary declaration. Register here.
Various dates – Exporting: what you need to do to keep your goods moving. Register here.
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