From 1 July 2021, changes were introduced to how Value-Added Tax (VAT) due on some imported goods can be accounted for. These changes include special arrangements introduced as a simplification for the declaration and payment of import VAT.
Where the special arrangements apply:
- only the import VAT collected from the customer is remitted by the declarant to Revenue
- the declarant presenting the goods to Customs will not pay the import VAT due at the point of importation
- the import VAT due is collected from the customer. The declarant will then pay the import VAT they collect to Revenue in a monthly return.
- the payment of the import VAT is deferred until the 15th of the month following the month in which the goods are imported.
This simplification is designed particularly for postal operators, express carriers or other customs agents.
These arrangements can be used where neither the:
- Import One Stop Shop (IOSS)
- standard VAT collection mechanism on importation
are being used.
All goods imported under the special arrangements are subject to the standard rate of VAT.
The special arrangements can only apply to the following imports:
- The goods must be in a consignment of an intrinsic value not exceeding €150.
- The goods must not be subject to excise duty.
- The goods must be delivered to a customer in Ireland and the declaration made in Ireland.
- The IOSS must not be used to declare, and pay, the VAT due on import.
The use of these arrangements is not mandatory, but is subject to application and approval by Revenue.
Further guidance contains more detailed information on the special arrangements. This guidance includes the meaning of intrinsic value and eligibility to apply these arrangements.