Irish shoppers warned: The 150 rule change that could transform online shopping in Ireland forever

It's a move that is sure to change how people in Ireland shop online forever.

From July 1, Irish consumers might notice online purchases from outside the European Union, including Great Britain, becoming more expensive.

The change means a Customs Duty charge of 3 will have to be paid on every item valued at 150 or less purchased from outside the EU, including Great Britain. The change will take effect in all EU member states, including Ireland.

The change in the rules will also mean the process of returning goods will be impacted.

Currently, there is no Customs Duty on eCommerce packages entering EU where the goods (excluding delivery charges etc.) are valued at 150 or less.

From July 1, a new Customs duty of 3 for each item in a parcel will apply to goods bought online from non-EU countries, including Great Britain.

For example, a package from Asia contains a pen, a notebook and a key ring purchased online. Because the package contains three distinct items, each will have a 3 Customs Duty charge, so there will be 9 Customs Duty plus VAT due.

If the package contained two identical pens, these are considered one item and there will be a 3 Customs Duty charge plus VAT due.

The change is designed to ensure fairness for Irish and EU businesses.

Revenue is encouraging all consumers to be aware of these changes before they shop online to avoid unexpected costs and possible delays.

How the new Customs Duty will be paid

Consumers will pay the 3 Customs duty per item in one of two ways, depending on the terms and conditions of the business they are buying from:

• Charged at checkout: Some websites will be set up to collect the duty at the point of sale. In this case, the 3 duty will be shown to you and will indicate that the total price you pay at checkout will be the final price, with no extra charges on delivery.
• Charged on delivery: Other websites may not collect the duty at checkout. If this is the case, the delivery company (e.g., your postal service or courier) will require you to pay the 3 duty per item before your goods can be delivered.

Before completing a purchase, check the websites terms and conditions to understand how the business selling the goods apply Customs charges.

Important information on returns

The new rules will also impact the returns process for goods bought from outside the EU:

• Customs duty is non-refundable: If you decide to return an item, you will not be refunded the 3 customs duty you paid, unless the goods are faulty.
• VAT (Valued Added Tax) refunds vary by website: Some online suppliers will refund the VAT you paid if you return an item, but many will not. This is dependent on how individual businesses account for VAT liabilities. This may not be obvious to consumers.

You should read the websites terms and conditions carefully to see what the businesss terms and conditions are refunding VAT for returned goods.

Shopping within the EU and identifying a websites location

There is no Customs duty if your goods are based in Ireland or another EU country at the time the goods are ordered.

Some websites may appear as if the business is Irish or EU-based (for example, by using a .ie domain or showing prices in Euro), however, the goods may be shipped from a non-EU country.

For businesses who do not show Customs duty on its website, it is vital to check the websites "Terms and Conditions" and/or "About Us" page to confirm its physical business address and the location from where the goods will be shipped.

Speaking about the new Customs rules, Raphael Ryan, Head of Revenues National Customs Policies and Procedures, explained:

Our goal is to ensure consumers are fully informed about these changes before the new rules take effect. We want to help people avoid unexpected costs and make informed decisions when shopping online. We urge everyone who shops online to take a moment to check where their goods are coming from before they buy so that they know if there is duty to be paid before the goods are delivered.

More information is available on the Revenue website and includes examples of how the charge is applied per item.

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