By bbotany
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01/04/2022

Online shopping and Brexit

Why are you asked to pay VAT and customs on delivery?

Published on: 22/04/2021 Share on FacebookShare on Twitter>Buying products online in the United Kingdom or in a country outside the European Union gives rise to often unrecognized additional costs. VAT, customs duties… What can we claim from you?

Since the United Kingdom turned its back on the European Union (EU) on January ¹ , 2021, many consumers have been amazed when they discover the fees charged following purchases on English websites. Like Pierre who contacted UFC-Que Choisir because the carrier of his online order, Chronopost, is asking him for €62.50 in customs clearance costs. Or François, who after shopping on the Bovington Armored Museum site for €160, is asked for an additional €139.40 to be delivered by UPS: €18.40 VAT, but also €29 “government fees” and €92 of “brokerage fees”, fees charged for carrying out customs clearance formalities!

These requests are not a parcel scam, but a direct consequence of the United Kingdom's exit from the EU: any purchase made on an English, Scottish, Wales and Northern Ireland site is now considered as coming from a third country . Thus, specific rules apply. And to add to it, they will even get tougher from July ¹ , 2021.

Paying French VAT: sometimes yes, sometimes no!

The rule: you don't have to pay VAT twice . That is to say that of the country of origin of the goods and the French VAT, 20%. Example with a purchase in the UK. “The UK seller has two options for VAT: either they choose to charge you French VAT on goods delivered from the UK and you will therefore not have to pay import VAT on delivery, or he chooses to charge you the net price (excluding UK VAT) and you will then have to pay import VAT on delivery,” says European Consumer Center France (CEC France). As a precaution, it is therefore better to find this precision on the e-merchant's site or ask him the question before validating your basket.

The rule for parcels below €22 will change

Achats en ligne et Brexit

Be careful, however, because not all purchases are currently subject to the same rules. Today, for parcels under €22 (regardless of the number of items inside), an exemption from payment of French VAT applies. But that will change from July ¹ , 2021.

A new European regulation provides for taxation from the first euro spent online on foreign sites. Thus, from this date, whatever the amount of your purchase, you will have to pay VAT. Only “express” shipments, by air, will initially be affected and then, by 2024, all other modes of transport.

However, there will be a nuance depending on the purchase channel taken. If you validate a basket on a marketplace like Amazon, Cdiscount or Aliexpress containing products from a third-party seller, it is the platform that will have to charge you French VAT during the purchase and then pay it back to the State. On the other hand, if you buy directly from a foreign site, the latter may decide to invoice you directly. Or not to. And in this case, the VAT will be claimed from you upon delivery.

Customs duties: a gas factory!

In addition to VAT, customs duties may be applied. The rule to remember: for a package of less than €150, you are exempt. The situation becomes more complicated if it is for a higher amount!

"If you justify that the products purchased come from the United Kingdom or the European Union or have been manufactured with materials mainly originating from the United Kingdom or the EU, you may be exempt from customs duties", specifies the CEC France. But you will have to make sure. How ? By requesting a "certificate of origin" from the seller. We have known simpler!

If you order products from a UK-based site from outside the EU, you will have to pay customs duties on delivery. A real headache since the rates applied are not the same depending on the product!

For example, you buy a pair of shoes for €210 on a site in England. By adding 20% VAT and customs duties which can range from 3.5% to 17% depending on the characteristics of the model (material in particular), you will have to pay a total of between €259.35 and €287.70. ! In addition, the carrier may also charge you additional costs (file management costs, transport, insurance, etc.).

Conclusion, before any purchase on the Internet, it is better to analyze the situation in which you find yourself and ask yourself the following questions. Is the seller hosted on a marketplace or does he sell directly? In the latter case, by whom is the VAT paid? And what is the origin of the purchased product? What are the carrier charges? Too laborious checks that are already producing waves of misunderstanding among consumers.

Elodie Toustou