Consumers who buy goods from overseas may be charged with hundreds of pounds of fees and taxes now that the UK has left the single market, HM Revenue & Customs (HMRC) has warned.

Like certain goods purchased from outside the EU, goods purchased from inside the EU may now attract tariffs, VAT, and customs charges.

The warning comes as online spending ramps up in the run-up to the festive period.

According to the tax authority, changes introduced on 01 January 2021 mean that consumers based in England, Wales, and Scotland may be hit with ‘hidden’ charges.

Those from Northern Ireland won’t be affected, however, due to the Northern Ireland Protocol.

The changes apply to orders worth more than £135 (known as the consignment limit) and all goods subject to excise duties, such as tobacco, alcohol, and perfume, no matter the value.

Anyone ordering online from abroad where the order value exceeds the limit will now need to pay import VAT and may need to pay customs duty, as well as a handling fee.

If you are paying import VAT, customers should ensure that their seller does not charge VAT, otherwise you may be unfairly charged twice.

The new rules also apply to gifts received from someone based in the EU. Import VAT is due on gifts worth more than £39, while customs duty may be payable on gifts worth more than £135.

Commenting on the rule changes, Katherine Green and Sophie Dean, Directors General, Borders and Trade, said: “With Christmas rapidly approaching, we don’t want shoppers to be caught out by unexpected charges which will take the fun out of their Christmas shopping experience.

“There are now a number of factors that people will need to consider when purchasing goods from the EU, so shoppers are being advised to check guidance to ensure they know what they will owe.”

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