With more people than ever before buying over the Internet, HM Revenue & Customs (HMRC) today 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:
ìWith 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 donít realise that they have to pay charges on purchases delivered from overseas. We donít 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.î
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 ñ particularly from suppliers in the United States ñ 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 ëpassengerís allowanceí applies.
People are often unaware that although the foreign sender may have completed the customs declaration form on the parcel, they are regarded as the importer of the goods. 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. Furthermore the goods themselves will be liable to forfeiture.
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. Copies of our Notice Number 143 ëA Guide For International Post Usersí can be obtained from the NAS or from our website:
Online shoppers warned - Dont let parcels cost you a packet
HM Revenue & Customs (HMRC) today warned of the extra costs that many online shoppers face from import duties and VAT on purchases that are delivered from abroad
