HMRC are warning Christmas shoppers looking for overseas bargains not to get hit by unexpected charges.
Travellers going abroad to do Christmas shopping, or shoppers buying goods online from non-EU countries are being advised to check how much they can buy before customs duty or import VAT are due on projects.
If purchases are made over the internet or by mail order from outside the EU, VAT (calculated on the full item value) will be due if the value of the package exceeds £15.
On 1 April 2012, low-value consignment relief was abolished on mail order imports from the Channel Islands and since then, all mail order imports have been subject to VAT.
When receiving a gift from outside the EU, import VAT (calculated on the full item value) will only be due if the package is valued at over £36. To qualify as a gift, the item must be sent from one private individual to another, with no money changing hands.
In addition to VAT, goods valued above £135 may also attract customs duty, although this will depend on what they are and where they have been sent from. Where the actual amount of duty due is less than £9, this will not be charged.
Alcohol and tobacco products are subject to excise duty when purchased online or by mail order. If shoppers travel across the Channel to purchase these items, there are no limits on the amounts of duty and tax paid goods they can bring back personally from another EU country, as long as they are for personal use.
Those arriving in the UK by commercial sea or air transport from a non-EU country can bring in up to £390 worth of goods for personal use without paying customs duty or VAT (excluding tobacco and alcohol, which have separate allowances) while, those arriving by other means, including by private plane or boat for pleasure purposes, can bring in goods up to the value of £270. Above these allowances and up to £630, a flat rate duty of 2.5% is payable. If a single item worth more than the £390 (or £270) goods allowance is brought in, duty and/or tax on the full item value is payable and travellers are not allowed to combine their individual allowances together to bring in an item worth more than the limit.
HMRC Head of Customs Policy, Angela Shephard, said: 'We know many people like to go abroad at this time to buy their Christmas gifts, or buy online from non-EU countries, and think that the 'cheaper' price they see is always the price they finally pay. This is a reminder to everyone about how much they can actually bring back from abroad or buy from an online overseas seller without having to pay customs duty or import VAT.
'Shoppers must always be cautious with websites that say they will undervalue your goods so you won't pay VAT or offer famous 'brand' names at very low prices. HMRC knows about these sites and people may end up paying more or having goods seized when they think they have found a bargain.'
More details are available from HMRC at HERE