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Online shoppers facing higher VAT rates for non-EU goods

People buying goods online from outside the European Union are facing new VAT rules from July 1st...
Jack Quann
Jack Quann

08.50 1 Jun 2021


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Online shoppers facing higher...

Online shoppers facing higher VAT rates for non-EU goods

Jack Quann
Jack Quann

08.50 1 Jun 2021


Share this article


People buying goods online from outside the European Union are facing new VAT rules from July 1st.

This means the a current VAT exemption for imported goods with a value of €22 or less will end.

From that date, all goods arriving into Ireland from non-EU countries - regardless of their value - will be subject to VAT.

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Revenue says the VAT rate "will be the relevant rate that would apply if the goods were purchased in Ireland."

This will also apply to goods purchased in the UK.

The new rules also apply to goods purchased from a non-EU country in advance of July 1st that arrive in Ireland for delivery on or after that date.

The change is being brought in across all EU member states to "ensure that goods imported from outside the EU no longer have a preferential VAT treatment compared to goods purchased from within the EU".

Consumer journalist, and host of the The Home Show, Sinead Ryan told Newstalk Breakfast it will mean changes.

"From the 1st of July, all goods that are imported - irrespective of value - from any county outside the EU, and that'll include the UK, will now be charged VAT.

"And of course in Ireland, the VAT rate on most goods and services is 23%.

"There's a separate charge that is applied to goods worth over €150, which is a customs charge, that's remaining unchanged.

"The new directive will apply to any goods arriving in Ireland after [July] 1st.

"So that means even if you order the item in June, but it takes two or three weeks to get here, you'll still be charged the extra VAT on it.

"So it's important for customers to know that if they're shopping outside the EU during the month of June".

Sinead explained the new approach is to "stop preferential treatment being given to goods bought outside the EU - so it's a protectionist kind of measure.

"And [to] make sure that retailers and shops within the European Union are treated the same as anyone else".

Online shoppers facing higher VAT rates for non-EU goods

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Main image: A man views the Amazon website in January 2011. Picture by: Danny Lawson/PA Archive/PA Images

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Newstalk Breakfast Non-EU Countries Non-EU Goods Online Shoppers Revenue Sinead Ryan VAT Rules €22

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