In anticipation of July 1, when new EU customs rules take effect, the Irish Revenue reminds all key stakeholders, particularly those engaged in online shopping from non-EU suppliers, including purchases from Great Britain, of how those rules apply. Moreover, the Revenue provided a clear explanation of how the rules are applied and what impact the new rules have.

New Customs Rules for Online Shopping

Under the new customs rules, consumers will pay the new EU EUR 3 customs duty per item in one of two ways, depending on how the online retailer handles import charges. The first option is for online retailers to collect customs duty at checkout, where the amount paid will be the final cost, meaning there should be no additional customs fees when the package arrives.

However, an online retailer may decide not to collect this duty, meaning the delivery company, such as a postal operator or courier service, will collect it before delivering the package to the customer. As a result, the end customer will have to make an additional payment after the purchase has already been made. 

Notably, the new customs rules not only affect purchases but also change how returns work for goods bought from outside the EU, with some important limitations for consumers. Therefore, the newly introduced customs duty will generally not be refunded if a customer returns an item, unless the product is faulty. This means that even if a purchase is returned, the customs charge will usually remain non-recoverable.

Also, VAT treatment on returns will be less consistent as some online retailers may refund VAT when goods are returned, and others may not, depending on how they manage their VAT obligations and accounting practices.

Conclusion

Consumers should carefully review a retailer’s terms and conditions before completing an online order to understand whether EU EUR 3 customs duty is included in the checkout price or is paid separately upon delivery. Reviewing terms and conditions is also vital for understanding how VAT and returns are handled. Given that the customs duty applies to imported goods, consumers should also determine whether the online store is located within the EU or outside.