RMcH states: Prior to 1 July, there was no customs duty on eCommerce packages entering the EU where the value of the goods was less than €150. Now, a €3 charge, dubbed in some quarters “The Temu Tax”, applies to all eCommerce packages valued at €150 or less coming into Ireland from outside the EU. The Duty of €3 per item will apply to packages sent directly to consumers from countries outside the EU. This means that each distinct product type in a package attracts a separate €3 charge. The €3 Customs charge will be included in the total used to calculate VAT. Readers can find more information on Revenue’s website.
Revenue also recently published a FAQ document which addresses several issues, including items arriving from Northern Ireland. In the document it is noted that for customs purposes Northern Ireland holds a unique status and effectively functions as part of the EU for trade in goods. As such, there should be no impact on all-island trade following the introduction of the fixed €3 Customs Duty.
For example:
- A parcel containing 1 pen + 1 notebook + 1 keyring:
- Customs duty: €9 (€3 × 3 distinct item types)
- VAT is calculated on the goods plus the €9 duty.
- A parcel containing 3 identical T-shirts:
- Customs duty: €3, because identical items are treated as one distinct item type
courtesy of Chartered Accountants Ireland