A Brexit deal was finally agreed between the EU and the UK on Dec 24th 2020.
But , even with an EU/UK trade deal, there may still be import duties on some items. UK VAT should not be charged on orders from the UK sent to Ireland/EU.
Read the full details below and how it will affect Online Shopping in Ireland from UK websites after Brexit.
There appears to be a lot of people in Ireland who assume that customs duty 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 £130 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 Rates on UK Online Shopping
Import VAT in Ireland and Orders From The UK
Since Brexit on 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.
Between Jan 1st and July 1st there was a VAT exemption on orders under €22 coming to Ireland from outside the EU..
However, since July 1st 2021 , import VAT in Ireland is now payable on all orders from outside the EU regardless of value.
The VAT Rate in Ireland is 23% on most goods. (It was temporarily reduced to 21% between Sept 2020 and Feb 28th 2021.)
Books are zero VAT in Ireland as is children’s clothing and children’s footwear (usually up to age 11).
Books are also zero VAT in the UK .
VAT on Orders from UK Pre-July 2021
From Jan 2021 to July 2021, if the value of a package delivered from the UK to Ireland was less than €22 (including delivery charges) , then it was exempt from Irish import VAT.
This meant that on packages under €22 – Irish shoppers using UK websites saw price reductions of 16.66%.
VAT on UK Sales to Irish Customers post July 2021
- The EU €22 exemption on import VAT was removed from July 1st 2021
- Online marketplaces (such as Amazon) are now responsible for collecting EU VAT on all orders under €150 from outside the EU.
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 . 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 / Ebay orders under €150.( Even third party sales.)
- 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 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 – 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 on orders over €150 – 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.
- BOOKS are zero VAT and 0% Duty – so there should be no extra to pay on books bought from the UK.
Admin Charges if You Have to Pay VAT or Duty on Delivery.
An Post seem 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.
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 .
Luckily the Irish and UK VAT rates are different – (20% in UK, 23% in Ireland) .
You will know if Irish VAT has been applied because the total price on checkout should be about 2.5% higher than the advertised UK price.
For example, £100 inclusive of UK VAT should change to £102.50 at checkout for delivery to Ireland.
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 Germany