HM REVENUE AND
CUSTOMS News Release (Ref:NAT 56/08) issued by COI News Distribution
Service. 13 November 2008
From next month,
internet shoppers will no longer have to pay customs duty on
non-EU purchases worth up to £105.
Customs duty is currently payable on goods bought online from
non-EU countries worth £18 or more. But from 1 December, the new
£105 limit will apply. VAT will still be charged on goods over
£18, and is not affected by the changes.
A new HMRC 'internet shopping' podcast, launched today,
explains the changes in more detail. As well as duty and VAT, the
podcast discusses handling fees, which mail carriers are entitled
to charge and collect from you on delivery, where duty or VAT is
payable. The podcast is available to download free from http://www.hmrc.gov.uk/podcasts.
HMRC's Director of Customs & International, Doug
Tweddle, said:
"Whether you're looking to get your hands on the latest
computer game, designer clothes or DVDs, it's important to be
aware of the law on customs charges, especially as this is about
to change.
"If you're thinking of doing a little web shopping from
abroad, download our podcast or visit the HMRC website and get
up-to-speed with all things online - it won't cost you a penny.
"If you're buying goods from countries outside the EU,
it's in your interests to know what the rules are. 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."
On Monday 1 December, the limit for customs duty imported from
non-EU countries will increase from 22 euros (£18) to 150 euros
(£105). The limit for VAT is not changing and will stay at 22
euros (£18).
Examples Price Will I pay duty? Will I pay VAT?
DVD 16 euros No No
Digital camera 140 euros No Yes
Designer shoes 450 euros Yes Yes
Notes for editors
1. The lower limit for Import VAT is not being raised and will
still apply at the existing level of E22 (£18). Excise duties,
where applicable, will also be unaffected.
2. Customs duty is charged on most goods imported into the EU.
The rates are set out in European Community legislation and in the
Customs Tariff, which classifies the goods and gives the rate of duty.
3. All non-EU goods imported into the UK are subject to import
VAT. It is charged at the appropriate rate that applies to
identical goods sold in the UK.
Issued by HM Revenue & Customs Press Office
Press
enquiries only please contact:
Jan Marszewski
Tel: 020
7147 0798
Website http://www.hmrc.gov.uk