A Brexit deal has now been agreed between the EU and the UK (Dec 24th) .
But , even with a trade deal, there may be import duties on some items. UK VAT should not be charged on orders from the UK sent to Ireland/EU. However Irish VAT will be due on orders over €22 . Read the full details below and how it will affect Online Shopping in Ireland after Brexit.
There appears to be a lot of people in Ireland who assume that customs charges apply to all orders from the UK after Brexit. This is not true.
- No import duty will be charged on any orders coming from the UK valued under €150 (about £135 GBP).
- Some items over €150 not made in the UK might be liable for import duty – it depends on the type of product. Many popular products such as books, computers, games consoles, digital cameras, phones are NOT LIABLE for import duty .
Read more here about Import Duty on UK Online Shopping
Import VAT and Orders From The UK
Since Jan 1st 2021, all UK online sales to Irish and other EU customers should be treated as exports and should be zero-rated for UK VAT.
However, import VAT is payable on orders over €22.
The VAT Rate in Ireland is currently reduced to 21% on most goods and is due to go back up to 23% in February.
Books are zero VAT in Ireland as is children’s clothing and children’s footwear (usually up to age 11).
If an online retailer delivers online orders from the UK to a consumer in Ireland they have three options regarding VAT from 1st January 2021:-
- The seller can choose to deal with and charge customers the Irish VAT on goods delivered from the UK. This would mean the seller having to be registered for VAT in Ireland. No import VAT would need to be paid by the customer on delivery.
- The seller can opt to charge the net price (excluding any UK VAT). The customer would then be liable to pay import VAT on delivery if the order is over €22) . This will not be a popular option with customers because of the additional charges made by An Post or the couriers. (Minimum €3.50)
- The seller may not be UK VAT registered . In this case, the price charged will be the full UK price but the customer will also be liable for import VAT on delivery to Ireland. (if order is over €22)
The majority of major UK based retailers are doing things correctly- such as Amazon UK , Marks & Spencer, BooHoo, Asos, Boden , and loads more. This site has details of some more Online Shopping Sites for Ireland after Brexit
Lower Prices on Orders from UK Under €22
From Jan 2021 to July 2021 , if the value of a package delivered from the UK to Ireland is less than €22 (including delivery charges) , then it will be exempt from Irish import VAT. The rules change in July.
This means that on packages under €22 – Irish shoppers using UK websites should see price reductions.
We have checked on Amazon UK and they are doing the VAT charges correctly on items sold by them. (Jan 2021) .
For example, a Cordless Phone showing as £19.99 on Amazon works out as £16.66 for delivery to Ireland with the UK VAT taken off. This is the price you will pay for delivery to Ireland if you are a Prime member. ( £16.66 is a 20% reduction).
More Here about Shopping on Amazon UK After Brexit
Important Note – The €22 exemption is per package – not per item. So if you are doing any Online Shopping in Ireland after Brexit and are ordering several low priced items you may want to think about ordering them separately to avoid VAT. This will not cost more in delivery charges for Amazon Prime members.
Admin Charges if You Have to Pay VAT or Duty on Delivery.
An Post seems to be charging €3.50 to handle import fees from the EU .
DHL Express – Charge 2.5% of the Taxes and Duties . Min €14.50.
FEDEX – Charge 2.5% of the Taxes and Duties . Min €15.
VAT and UK Sales to Irish Customers post July 2021
- The EU €22 exemption on import VAT is being removed from July 1st 2021 and
- Online marketplaces (such as Amazon) are being made responsible for collecting EU VAT on all orders under €150 from July 1st
Summary of VAT on UK online orders to Ireland from July 2021
- On orders less than €150 –
- Online marketplaces ( eg Amazon) facilitating sales to Irish/EU consumers will become responsible for the VAT on third party supplier’s behalf too . So the Irish VAT will be taken care of at the point of sale by the marketplace provider and there should be no need to worry about any unpaid VAT on Amazon orders under €150.
- Other online retailers in the UK can opt to charge Irish VAT or no VAT at all. If No VAT is charged at checkout it will mean the customer will have to pay it on delivery. (If it is spotted )
- Orders delivered from the UK greater than €150 – Rules will be the same as pre July.
- Online retailers selling from the UK to Ireland can choose to collect Irish VAT at checkout or leave it for the customer to pay on delivery.
- Amazon –
- In the case of Amazon – we are sure they will continue to charge Irish VAT at checkout on all items coming from the UK “Sold by Amazon” and “Fulfilled by Amazon”.
- Other UK sellers on Amazon who organise their own delivery can choose to collect Irish VAT at checkout or leave it for the customer to pay on delivery along with any duty. They are strongly encouraged by Amazon to charge VAT at checkout.
Top Tip : If you want to avoid a delivery VAT bill plus an admin fee from a courier : – Avoid ordering from any UK retailer who doesn’t charge the Irish VAT after Brexit on orders over €22.
Luckily the Irish and UK VAT rates are different – (20% in UK, 21% in Ireland) .
You will know if Irish VAT has been applied because the total price on checkout should be 1% higher than the advertised price.
For example, £100 inclusive of UK VAT should change to £101 at checkout on a delivery to Ireland.
However – orders under €22 should not have any Irish VAT applied at all.
How Much is €22 Euro in Sterling?
Irish Customs use the Sterling to Euro rate of exchange quoted by the Irish Central Bank on the second last Wednesday of each month – for the whole of the following calendar month.
For example – The quoted exchange rate on Wed 23rd December 2020 was £0.9070 . Using that rate – €22 was worth £19.95 GBP .
This rate will be used for all orders arriving from the UK in January 2021 .
Therefore – any order of less than £19.95 (including delivery charges) will NOT be liable to VAT. (UK or Irish).
The exchange rate to be used by customs for February 2021 is 0.88563 – which means that orders under about €19.48 should be VAT free.
You can see the exchange rates used here on Revenue.ie
Goods from Outside UK and Europe
Minimal price disruption is expected for goods sent directly to Ireland by third parties who already deliver from outside Europe (for example, from China or US) . Because those goods already cross a customs border, the process is not expected to change in the EU.
This website has some examples of Online Shopping Sites to use in Ireland where there will be no import charges on delivery.
Amazon Germany might be worth looking at when doing Online Shopping in Ireland after Brexit.
Here is a link to the English Language Version of Amazon.de