VAT and customs duty

Consumers will be faced with VAT and customs duty from 1 January if buying goods from the UK, however, the changes are likely to result in an increase in the tax take for the Government.

Revenue has outlined the costs which consumers will face from 1 January. Anything priced under €22 will not face any additional import charges. But if goods are valued at more than €22 including shipping, delivery, insurance and handling charges, then VAT will be payable.

If goods are valued at more than €150, consumers will face not only VAT but also customs duty. The charges will either be applied by the retailer selling the goods, or by authorities here on arrival.

Revenue has given some examples of how charges could hit consumers. A €65 purchase of sports goods will not face customs duty, but will be liable for VAT. This would add €13.65 to the cost of the goods, excluding delivery and so the price of the goods would increase to €78.65.

However, if sports goods costs more than €150, the charges increase substantially. Revenue gives an example of an item priced at €167, it will be subject to customs duty of €20.04 and VAT at €39.28.