Online shoppers face fresh charges from November

Online shoppers who buy from outside of the European Union will face a fresh charge of €2 per distinct item from November 1st, Revenue has confirmed. The new handling is on top of a €3 charge per item that was imposed earlier this summer and when combined the price of some low cost items will double. The charges and fees are being imposed by the European Union (EU) but it is delivery companies who will have a legal responsibility to collect them, if they have not been paid on checkout operated by the online store.The charge is intended to cover the increased costs incurred by customs authorities as a result of the huge growth of ecommerce over the last number of years and will apply to all goods, regardless of their value once a seller ships them to Ireland from outside the EU.READ MORERevenue cited the example of a package valued at €10 containing a pen, notebook and keyring sent from outside the EU. As the package comprises three different items, a customs duty charge of €9 has been applied since July taking the total cost to €19. The Union handling fees will add another €6 to the bill taking the total cost to to €25.Should Ireland share its corporation tax bonanza with the EU?If the package contained two identical pens, they’d be considered one item, so the package would be liable to a €3 duty charge and from November 1st an additional €2 Union handling fee. If the value of a package is greater than €150, then the customs duty which applies to the specific goods instead of the €3 Customs Duty charge will be due. A pair of jeans worth €100 and a pair of runners costing €150 will attract duty of €37.35 in addition to the €4 Union Handling Fee.If an online retailer passes on the charge to consumers, they will pay in one of two ways:Some websites will be set up to collect the customs duty and Union handling fee at the point of sale. In this case, both charges will be shown to the consumer and the total price paid at the checkout will be the final price, with no extra charges on delivery.Other websites may not collect these charges at checkout and the delivery company will be required to collect the money from the consumer. There is no customs duty or Union handling fee if goods are based in Ireland, Northern Ireland or in another EU member state at the time the goods are ordered.“It is important that online shoppers are aware of these changes so that they understand the total cost of their online purchases before making a decision to buy,” said Reenue’s Ray Ryan. “We want to help people avoid unexpected costs either at checkout or when the goods are delivered to their doorstep”.