Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that for goods being imported from a non-EU country into the State, VAT is payable at point of importation. Imported goods are liable to VAT at the same rate as applies to similar goods sold within the State. They also require a Customs import declaration which is made using Revenue’s Customs Automated Import System (AIS). VAT registered traders may take credit for VAT paid on goods imported for the purposes of their business. This credit must be claimed in their VAT return in the taxable VAT period concerned.

To avoid payment at point of import, Postponed Accounting for VAT on imports is available to traders that are registered for VAT and Customs and Excise. The trader needs to fulfil certain conditions and the importer should enter a code on the import declaration indicating that they are using Postponed Accounting. This code will allow the VAT on import liability to be accounted for by the importer in their next VAT Return.

From 1 July 2021, the VAT de minimis of €22 was removed across the EU, meaning all goods imported into the EU are liable for VAT. These new VAT rules, which apply in all EU Member States, ensure that goods imported from outside the EU no longer have a preferential VAT treatment compared to goods purchased from within the EU, including from Irish retailers.

I am further advised by Revenue that a zero rate of VAT applies to exports which for VAT purposes, are goods directly dispatched to a destination outside the EU VAT area including Great Britain. Traders must ensure that the goods have left the EU and have evidence of export. In addition, each export requires a Customs export declaration. The declaration is submitted electronically using Revenue’s Automated Entry Processing (AEP) System. This declaration forms part of the proof required to be able to fully deduct any receivable VAT, that was paid in a previous related transaction leading up to the export, within the return for the VAT period concerned.

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that across the European Union, electronic customs import declarations are required for all parcels / packages coming from non-EU countries including the UK. In addition, since 1 July 2021, the VAT exemption for imported goods with a value of €22 or less was removed. From that date, all goods arriving into the EU from non-EU countries, regardless of their value, are subject to VAT. The applicable VAT rate for imports into Ireland is the relevant rate that would apply if the goods were purchased in Ireland. These new VAT rules ensure that goods imported from non-EU countries no longer have a preferential VAT treatment compared to goods purchased within the EU, including from Irish retailers.

In order to simplify the procedures for the importation of low value consignments, the EU introduced a scheme, where retailers in non-EU countries can register for the Import One Stop Shop (IOSS) which provides for the collection of VAT at the point of sale rather than at the point of import. The majority of large retailers in non-EU countries including in the UK, have signed up for this scheme. However, where the retailer has not signed up to the IOSS, then VAT is payable on import into Ireland regardless of the amount due.

Consumers should always check if any additional taxes and charges, payable on goods purchased from outside the EU including from the UK, have been included in the price displayed online. That way they should be able to avoid being presented with unexpected charges at a later stage.

Neither my Department nor Revenue have a role to play in the regulation of fees charged by businesses who deliver goods to an importer. That is a commercial arrangement between the business concerned and the importer. These businesses do not act on behalf of, nor do they collect the relevant taxes and duties on behalf of Revenue, but rather they act on the behalf of the importer and assist the importer in the correct clearance of their goods imported from outside the European Union.