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Shoppers are being caught out by the new Brexit rules on buying and sending goods.
Britain’s exit from the EU has changed the way people are charged for buying from overseas and for sending goods outside the UK.
A number of people have reported unexpected high fees caused by Brexit.
One woman who ordered a £200 coat answered the door to a UPS courier asking for an extra £82 to hand over the parcel. She sent it back without paying the extra charges and told the BBC she won’t be ordering anything else from Europe anytime soon.
So what are the charges for buying from abroad or sending goods overseas?
(Image: File image)
Buying from websites/sellers outside UK
Before Brexit, UK shoppers would have to pay VAT on purchases from abroad worth more than £15, on overseas gifts worth more than £39, and on alcohol, tobacco products and fragrances of any value.
You were also at risk of Customs Duty on anything worth more than £135 (which is the total of item price, postage, packaging and insurance).
That changed after Brexit. The £15 exemption on goods and £39 exemption on items marked as gifts have been abolished.
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From January 1, 2021, goods outside the UK with a value up to (and including) £135 that have been sold directly to customers in Great Britain (England, Scotland and Wales) will have UK supply VAT charged by the seller at the point of sale. This means a 20 per cent VAT charge will be collected..
Goods outside the UK and EU sold directly to customers in Northern Ireland and with a value up to and including £135 will have import VAT charged.
If the value of a package is over £135, normal VAT and customs rules will apply in Great Britain if the goods came from outside the UK – and in Northern Ireland if the items were from outside the UK and EU. Customs charges vary but can be as much as an extra 25 per cent of the value of the package.
Handling fees can also be added, with Royal Mail charging £8 to clear items through customs and fill in all the paperwork. Delivery firm DHL is charging UK customers 2.5 per cent of the amount paid to clear customs, with a minimum charge of £11.
All these additional fees are normally collected by the courier once the item is in the UK.
The collection of VAT is also being done on goods purchased via the auction site eBay which says it will “collect and remit VAT on consignments up to a value of £135 imported into the UK and sold to consumers.”
Sending goods overseas
Sending packages to EU countries is also different after Brexit.
Courier company Pack & Send says sending packages to EU countries will now be treated the same way as shipping to any other international region.
Anyone sending parcels to EU territories from England, Scotland or Wales must complete a customs declaration form.
These forms require the sender’s personal information and details about the parcel’s contents – including what the items are, their weight and their value.
Including the contents’ commodity code – which can be found online – and country of origin also helps avoid delays or the risk of the product being returned to you, which can be costly.
When working with a door-to-door shipping service, producing a commercial or pro forma invoice online also reduces the chances of delays in shipment. This is because they’re scanned directly into the carrier’s system, without running the risk of paperwork getting lost.
Mike Ryan, chief executive of Pack & Send, said: “Now we’ve left the EU, parcels may be subject to customs fees in some countries, which will be charged to the recipient.
“So, if you’re sending a gift, it may be best to make the receiver aware they may have to pay.
“The amount charged will depend on the value of the parcel’s contents. Items valued under 22 euros won’t be subject to VAT or duties until July 1, 2021 as part of an agreed scheme with the EU – with this date set to be extended.
“Items worth over 22 euros but below 150 euros may be taxed at the border and possibly incur a customs handling fee in the receiving country. Those over 150 euros may attract VAT and customs duties, plus the handling fee. These charges will vary from country to country.
“However, if you’re selling something online, it’s not all bad news for the buyer. Not only will VAT now be waived on shipping costs but they’ll also now pay VAT in the receiving country, rather than the UK – which represents an additional saving in some EU countries.”
But will there be additional delays when sending a parcel to the EU?
Mr Ryan says there may be slight delays due to the additional customs forms and declarations required. This adds a bit of admin for those working on the borders, who now need to inspect the documentation as well as the parcel itself – so it may take slightly longer for your parcel to arrive.
Plus, the ongoing coronavirus pandemic is causing additional delays, with ports currently understaffed.
However, this shouldn’t add too much time, he said. But it pays to be prepared – especially if it’s a time-sensitive parcel, like a present which needs to arrive in time for a birthday. So, it’s worth sending your packages off a few days before you usually would, for peace of mind.
If you need to send something urgently, consider moving your parcel to an air shipping service, rather than road, as these are less likely to be impacted by any capacity delays.
One thing that hasn’t changed is sending personal correspondence. Letters, postcards and similar are usually exempt from customs documentation requirements or charges.
Nothing changes when it comes to best practice for shipping parcels, either. It’s still recommended to leave plenty of time when sending parcels that need to arrive before a deadline.
It’s also advisable to choose tracked and signed delivery and purchase additional insurance cover when sending especially valuable items.
