Christmas shoppers warned of customs bills

Tax officials are warning Christmas shoppers not to fall foul of unexpected charges when buying from overseas traders.

Changes introduced in January mean that some UK consumers buying presents for family and friends from EU businesses may now need to pay customs charges when their goods are delivered.

In the same way that consumers have previously had to pay charges when buying certain items from non-EU sellers, the same rules now also apply to goods being bought from the EU.

Only those buying excise goods – tobacco or alcohol – or ordering luxury items or presents in consignments worth more than £135, before discounts are applied, should be affected.

VAT will still apply on purchases made in consignments worth less than £135 but should be charged by the seller at the point of sale.

But anyone buying a more expensive product from abroad may need to pay import VAT, customs duty and/ or excise duty when they receive their order.

Katherine Green, director general, borders and trade at HM Revenue and Customs (HMRC) said: “With 100 days until Christmas, we want to remind shoppers of the changes introduced since 1 and that online shoppers don’t inadvertently get caught out by any unexpected charges.”

To find out more about the new rules, go to GOV.UK for guide to the possible charges as well as essential information on how to dispute a charge, return unwanted goods and to get a refund.

Consumers can also find guidance on what may be required when sending or receiving items from friends and family living abroad.