With the abolishment VAT exemption for imported goods with a value of €22 or less from Thursday, 1 July 2021, Revenue issued a reminder to online shoppers about the new VAT rules for goods arriving in Ireland from non-European Union countries. The notice to consumers identifies how the changes may bring additional charges when buying goods online, where the non-EU established supplier does not account for the Irish VAT on behalf of the customer through the new Import One Stop Shop (IOSS).

The change in the VAT treatment of goods valued at €22 or under applies to goods bought from the UK (excluding Northern Ireland) from 1 July 2021.

Revenue detailed in its press release that, “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.”

If the supplier is operating under the IOSS this will be reflected in the ‘terms and conditions’ at the time of checkout and the total price paid for the goods at the time of purchase will include any Irish VAT due.

The Revenue webpage – Buying goods from outside the European Union (EU) including the UK – provides further information and working examples on the new VAT rules.