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Internet shoppers to get duty relief for Christmas
Internet shoppers who wait until December to look for a Christmas bargain may save more money than they thought when HM Revenue and Customs (HMRC) eliminates customs duty on personal purchases costing less that £105. The customs-free limit until now was £18.
The amount of duty to pay varies from 0% for some mobile phones to almost 15% for a plastic-covered handbag. Music players such as iPods attract a customs duty of 2%.
HMRC is increasing the point at which customs duty on online purchases coming from outside the European Union (EU) becomes payable from £18 to £105. Purchases within the EU attract no import duty.
VAT must still be paid on all online purchases costing £18 or more, though. The rate of VAT is fixed at 17.5%.
"If you're buying goods from countries outside the EU, it's in your interests to know what the rules are," said Doug Tweddle, director of customs and international for HMRC. "For example, some websites don't always make clear there is duty or VAT to pay, while others may misrepresent or undervalue your goods to try and avoid paying charges. But if goods are found to be wrongly declared, they may be seized and the customer penalised."
The change to the point at which customs duty is charged will happen on 1st December.
The change will change the amount to be paid for goods that cost more that £18 but less than £105.
A number of online retailers have established themselves in Jersey and Guernsey in recent years to take advantage of an EU law that allows for the VAT-less import of goods into the EU if they cost less than £18. This is because it was seen as inefficient to engage in costly VAT administration for goods costing just a few pounds.
The Channel Islands are technically outside of the EU, though their defence and diplomacy is conducted by the UK on their behalf.
The amount of duty that is to be paid on goods depends on what they are. Goods are categorised into one of thousands of codes, each of which has a particular duty rate. For some it is zero and can go over 10%.
Internet shoppers to get duty relief for Christmas | OUT-LAW.COM
The amount of duty to pay varies from 0% for some mobile phones to almost 15% for a plastic-covered handbag. Music players such as iPods attract a customs duty of 2%.
HMRC is increasing the point at which customs duty on online purchases coming from outside the European Union (EU) becomes payable from £18 to £105. Purchases within the EU attract no import duty.
VAT must still be paid on all online purchases costing £18 or more, though. The rate of VAT is fixed at 17.5%.
"If you're buying goods from countries outside the EU, it's in your interests to know what the rules are," said Doug Tweddle, director of customs and international for HMRC. "For example, some websites don't always make clear there is duty or VAT to pay, while others may misrepresent or undervalue your goods to try and avoid paying charges. But if goods are found to be wrongly declared, they may be seized and the customer penalised."
The change to the point at which customs duty is charged will happen on 1st December.
The change will change the amount to be paid for goods that cost more that £18 but less than £105.
A number of online retailers have established themselves in Jersey and Guernsey in recent years to take advantage of an EU law that allows for the VAT-less import of goods into the EU if they cost less than £18. This is because it was seen as inefficient to engage in costly VAT administration for goods costing just a few pounds.
The Channel Islands are technically outside of the EU, though their defence and diplomacy is conducted by the UK on their behalf.
The amount of duty that is to be paid on goods depends on what they are. Goods are categorised into one of thousands of codes, each of which has a particular duty rate. For some it is zero and can go over 10%.
Internet shoppers to get duty relief for Christmas | OUT-LAW.COM
