Government warns on web import duty

HM Revenue & Customs

With more UK consumers than ever buying over the internet, HM Revenue & Customs (HMRC) today warned of the extra costs incurred by online shoppers from import duties and VAT on purchases delivered from abroad.

Phil Colclough, anti-smuggling manager at HMRC, said: "Many people often don't realise that they have to pay charges on purchases delivered from overseas.

"We don't want to put people off internet shopping, but we do want to make sure that online shoppers are quite clear about the full costs involved, and that there are no unpleasant surprises when the postman knocks at the door.

"It is important that UK and foreign internet companies can trade on a level playing field. Therefore tax on purchases needs to be applied fairly to all."

HMRC has reported a dramatic rise in the number of packages on which customs duty and import VAT is due. This reflects increasing levels of internet shopping, particularly from suppliers in the US.

The department noted that there has been a similar growth in complaints from the public, who are either ignorant of the VAT and duty implications of any internet purchases costing more than £18, or mistakenly assume that the £145 'passenger's allowance' applies.

"People are often unaware that, although the foreign sender may have completed the customs declaration form on the parcel, the [recipient is] regarded as the importer of the goods," HMRC warned.

"If anyone purchases goods over the internet and the declaration is found to be false or misleading, they may be liable to financial penalties or criminal prosecution. Furthermore the goods themselves will be liable to forfeiture."

Consumers who are doubtful about potential purchases, or who have any questions about customs charges, can contact HMRC's National Advice Service on 0845 010 9000 or online here.