Since January 2021 – most Amazon UK Orders Under €22 were VAT free for For Irish Shoppers
This only applied to items SOLD by or Fulfilled By Amazon and this ended on June 30th 2021
We have written already about the Effect of Brexit on shopping on UK websites such as Amazon.
Irish VAT Exemption on Imports
Since Jan 1st 2021 , any package delivered from the UK to Ireland that had a value less than €22 (including delivery charges) , was exempt from Irish import VAT. Brexit also meant that UK Vat should not be charged on sales to Ireland .
This meant that on packages under €22 – that were liable for UK VAT – Irish shoppers using Amazon UK got a 16.66% price reduction from January to July 2021
(Books are VAT free in both countries and are not affected.)
You can click here to get a free 30 Day Trial of Amazon Prime
VAT Changes From July 2021
As mentioned above – from July 2021 Ireland & the rest of the EU is abolishing the import VAT exemption on low-value parcels from outside the EU.
From July 1st 2021 Irish VAT will be charged on all orders from non-EU countries delivered to Ireland.
All online retailers are supposed to charge the correct Irish VAT at checkout from July 1st 2021.
For third-party sellers on Amazon – the Irish VAT will be taken care of by Amazon on orders under €150. So we expect to see more small non-EU retailers moving on to Amazon or similar marketplaces to save themselves the hassle and expense of registering for VAT in several EU countries.
VAT on Amazon Delivery Charges For Non-Prime Members
If you are not an Amazon Prime member in Ireland you will also pay Irish VAT on the Amazon delivery charge.
Even if your order is over £20 and qualifies for free delivery.
The Irish VAT has to be applied to the €6 delivery charge. Amazon then deducts €6 at the end as a “promotion”. So – non-Prime members will see an extra £1.38 in “import fees” at checkout on all orders – which is the 23% Irish VAT on the £6 delivery. (It was 21% from Sept 2020 to Feb 2021.)