Brexit Vat Overview: Irish Consumers Buying Goods Online
by Kevin Canning
 
 

Part 4 of our Brexit Series will focus on Irish Consumers purchasing goods from Abroad. In my experience, most Irish people can relate to the annoyance of ordering goods online only to be told when it arrives at you door that you owe additional money in either Customs or VAT – why is that you might ask?

 

An important point to note in relation to the supply of goods between Ireland and the UK is:  

  • NI is considered part of the EU for an initial period of 4 years
  • UK is not considered part of the EU. Therefore, all supply of goods between the EU & UK are now considered exports/imports

The following is a summary of the VAT & Customs:

 

 

For an Irish Consumer ordering goods online, the following should be the VAT rules depending on where you order from:

  • Ireland: Normal VAT as if you bought in a shop

 

  • Other EU Country: Irish Customer will be charge other EU country’s VAT rate unless that company sells more than €75k worth of goods in Ireland per annum. If that is the case, Irish VAT will be charged. From 1 July 2021, Irish VAT will be charged all the time.

 

  • NI: Given that NI is still considered part of the EU, the same rules will apply as if NI was still an EU country for Irish customers ordering good from a NI online store.

 

  • The UK: Irish customers will be charged Irish VAT if the value of the goods is over €22. There is no VAT on goods under €22. Whether you pay the VAT on delivery or when you order online depends on seller. Therefore, you should check online when making purchases to ensure Irish VAT has been charged. From 1 July, it is expected that Irish VAT will be charged on all sales. Custom declarations and possible custom duties will apply to these transactions. The delivery company will normally manage the declaration but might request funds from the buyer to cover VAT or duties before releasing goods.

Please note that the above is provided for informational purposes and should not be considered tax advice. if you would like to speak to Quintas about any Brexit issues, please contact either Kevin Canning (Kevin.canning@quintas.ie) or Dave O’Brien (Dave.obrien@quintas.ie)