[ad_1]
The price of some goods bought by people in Ireland on UK websites could increase by more than 40 percent from January 1 after taxes and post-Brexit charges are added to the list price, Revenue warned.
Consumers will not only face substantial price increases when shopping with UK-based companies, they could also see a substantial reduction in the rights they have when it comes to returns or seek redress in the event that the products are defective. and not as described, the Competition and Consumer Protection Commission (JPAC) has said.
However, despite significant changes to come, research released by the JPAC on Wednesday points to an alarmingly high percentage of Irish consumers who do not realize that shopping on websites in countries outside the EU, which Soon to include the UK, they can lead to additional taxes and charges and a substantial reduction in duties if things go wrong.
The study shows that only 15 percent of consumers are aware that buying from non-EU websites can lead to higher taxes and fees and it comes when both the JPAC and Revenue Commissioners have urged shoppers to line to be aware of the impact of Brexit on purchases. They do from UK websites since 1 January.
Additional taxes
As it stands, the UK is effectively part of the EU and, as a result, Irish consumers do not have to pay additional taxes or VAT when shopping on websites located there. People also have significant protections when it comes to returns and repairs if products are faulty or not as described, which is enshrined in EU law.
However, all of that is likely to change dramatically and rapidly from early next year.
In a briefing aimed at raising awareness of the impact of Brexit on consumers, Ray Ryan from the Revenue Customs Division outlined three charging scenarios that online shoppers should consider when shopping on a UK website as of January 1st.
He said online shoppers will not face additional import charges when buying something for € 22 or less, including shipping, delivery, insurance and handling costs, but if the value of the products exceeds that value, VAT will be paid.
He also said that consumers would have to pay customs duties and VAT if the value of the merchandise was greater than € 150 (excluding shipping, delivery, insurance and handling costs).
Mr. Ryan also explained that there are two models that cover payment of customs duties and VAT.
“If the total price paid for the good or goods at the time of purchase includes any customs duties and VAT due, no further import charges will arise at the time of delivery,” he said.
“However, if this is not the case, the carrier or postal service that delivers the products purchased online from outside the EU will complete the relevant customs formalities and Customs will calculate the amount of VAT and duties based on the information provided. The buyer must pay these charges to the carrier or postal service before the goods are delivered. “
Other taxes
He said clothing purchased from a UK website for € 167 would end up costing € 236.32 once VAT and other charges were added to the price. Consumers here would be responsible for paying for that with additional fees charged by delivery companies, who will be allowed to hold delivery until payments are made.
JPAC spokeswoman Doireann Sweeney added that existing consumer rights in the EU would no longer automatically apply when shopping on a UK website after Brexit and highlighted the need to check where merchants are located.
“The EU Consumer Protection Act gives Irish consumers the right to change their minds after receiving their purchases and other strong protections when shopping online. At the moment these rights are also reflected in UK law, however, starting in January, consumers may have difficulty enforcing these rights in disputes with UK retailers, ”he warned.
She said CCPC’s research pointed to the need for consumers to review the terms and conditions on the website they are shopping from.
“Our research shows that while the amount of online shopping from the UK is declining, only 1 in 10 consumers plan to pay more attention to a website’s location after Brexit.”
He stressed that he was not encouraging people not to buy from UK websites, but to be aware of the consequences of their decisions and the impact they could have on their rights.
Ryan said Revenue had no estimates on how much additional tax would be collected next year as a result of people shopping on UK websites, but 100,000 packages delivered from non-EU countries last year generated around € 7 million for the treasure.
[ad_2]