Published: 25 October 2005
With Christmas Coming
With more people than ever before buying over the Internet and as people’s thoughts turn to buying Christmas presents, HM Revenue & Customs (HMRC) have warned of the extra costs that many online shoppers face from import duties and VAT on purchases that are delivered from abroad.
Customs Anti-Smuggling Manager Phil Colclough said:
"With a whole world of shopping opportunities now available, we want to help Internet shoppers avoid any confusion about what tax they need to pay.
Many people often don't realise that they have to pay charges on purchases delivered from overseas.
We don't want to put people off Internet shopping, where there are undoubtedly bargains to be found. However, we do want to make sure that online shoppers are quite clear about the full costs involved, and that there are no unpleasant surprises when the postman knocks at the door.
It is important that UK and foreign Internet companies can trade on a level playing field.
Therefore tax on purchases needs to be applied fairly to all."
In recent years Customs officers have seen a dramatic rise in the number of packages on which Customs duty and import VAT is due.
This reflects increasing levels of internet shopping - particularly from suppliers in the United States - and has led to complaints from the public, who are either unaware of the VAT and duty implications of internet purchases costing more than £18, or mistakenly assume that the £145 'passenger's allowance' applies.
If you purchase goods over the internet you may be liable to pay Customs import duty and VAT when the goods enter the United Kingdom:
Customs duty - if the amount of duty is £7 and over; and
VAT - if the value of the goods is £18 and over.
These must be paid whether:
you purchase the goods or receive them as a gift;
the goods are new or used; or
the goods are for your private use or for sale.
If anyone purchases goods over the Internet and the declaration is found to be false or misleading they may be liable to financial penalties or criminal prosecution and furthermore the goods themselves will be liable to forfeiture.
Further information
Notice Number 143 'A Guide For International Post Users'
HMRC - Shopping on the Internet
If in doubt about potential purchases, or have any questions about customs charges individuals should contact our National Advice Service (NAS) on 0845 010 9000
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