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Online shoppers warned of unexpected tax bill
Online shoppers have been warned that they could face an unexpected tax bill when
ordering gifts from outside the EU.
HM Revenue & Customs (HMRC) is reminding consumers that while they may think they
have found a bargain, many people fail to factor in VAT and customs duty.
‘We know many people like to go abroad at this time to buy their Christmas gifts, or buy
online from non-EU countries, and think that the ‘cheaper’ price they see is always the
price they finally pay,’ said Angela Shephard, Head of Customs Policy at HMRC.
She continued: ‘HMRC is keen to remind the general public how much they can actually
bring back from abroad or buy from an online overseas seller without having to pay
import duty or VAT.
‘You don’t want to be faced with unexpected extra charges, when you thought you had
found a bargain.’
Goods valued at more than £15 that are purchased over the internet or by mail order
from outside the EU are liable to VAT.
Customs duty might also be due for goods valued at more than £135, although this will
depend on what they are and where they have been sent from.
If someone receives a gift from outside the EU, import VAT will be due if the package is
valued at over £40. To qualify as a gift, the item must be sent from one private individual
to another, with no money changing hands.