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HMRC Announces New Customs Rules For Internet Shoppers
by Robert Lee, Tax-News.com, London

17 November 2008

From next month, internet shoppers in the United Kingdom will no longer have to pay customs duty on non-European Union purchases worth up to GBP105, HM Revenue and Customs has announced.

Customs duty is currently payable on goods bought online from non-EU countries worth GBP18 (EUR22) or more. But from December 1, the new GBP105 (EUR150) limit will apply. VAT will still be charged on goods over GBP18, and is not affected by the changes.

HMRC's Director of Customs & International, Doug Tweddle, said: "Whether you're looking to get your hands on the latest computer game, designer clothes or DVDs, it's important to be aware of the law on customs charges, especially as this is about to change.

He added: "If you're buying goods from countries outside the EU, it's in your interests to know what the rules are. For example, some websites don't always make clear there is duty or VAT to pay, while others may misrepresent or undervalue your goods to try and avoid paying charges. But if goods are found to be wrongly declared, they may be seized and the customer penalised."

Customs duty is charged on most goods imported into the EU. The rates are set out in European Community legislation and in the Customs Tariff, which classifies the goods and gives the rate of duty.

All non-EU goods imported into the UK are subject to import VAT. It is charged at the appropriate rate that applies to identical goods sold in the UK.

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