Revenue issued a press release reminding online shoppers that the VAT exemption for the import of goods from non-EU countries that are valued below €22 will be removed from 1 July 2021. This new EU-wide VAT rule is likely to make online consumer purchases from Great Britain more expensive for Irish customers from 1 July 2021. Goods purchased from Northern Ireland are not affected given that trade takes place under the Northern Ireland Protocol.

Goods purchased from non-EU countries, including Great Britain, are regarded as imports and the responsibility for paying VAT, customs duties and other charges lies with the end-consumer unless the supplier agrees to pay those charges.

From 1 July 2021, the de-minimis threshold will be abolished and VAT will be charged on all goods, regardless of their value. The amount of VAT arising will be the amount that would have been charged had the goods been purchased in Ireland. Regardless of when the goods are purchased, the VAT charge will arise if goods arrive in the country after 1 July. According to Revenue, the changes will mean goods purchased from a non-EU country no longer have a preferential VAT treatment compared to goods purchased from Ireland or another EU Member State.

From 1 July 2021, suppliers of goods may choose to operate under a special scheme called the Import One Stop Shop (IOSS) which allows them to pay the VAT due on behalf of the customer. If the supplier is operating under the IOSS, this will be reflected in the ‘terms and conditions’ at the time of checkout and the total price paid for the goods at the time of purchase will include any Irish VAT due.