There are some amazing bargains to be found on the internet in the run-up to Christmas, with US- and Asian-based retailers selling designer clobber, electronics and toys for a fraction of the price they cost here, if they can even be found here, that is.
There is, however, a sting in the sale in the form of the duty, tax and administration charges which take much of the gloss off the savings and are increasingly difficult to avoid.
While customs officials at Irish airports make only the most cursory of efforts to catch the many smugglers of Hilfiger, Abercrombie & Fitch, and Canon who pass their way each year, those responsible for policing the post are considerably more vigilant and your chances of getting stuff through without paying the necessary charges are slim and getting slimmer.
There will be around €2 million in VAT and duty collected from An Post's two main parcel centres in Athlone and Portlaoise this year, while private delivery firms such as FedEx, UPS and DHL will also collect significant sums on behalf of the Government. Online shoppers have to pay import charges on goods bought on the Internet from locations outside the EU, and these purchases are also liable for VAT at the same rate as applies in Ireland for similar goods. While the rates depend on the purchases, all-told you can expect to pay around 30 per cent extra in VAT and excise duty.
If you're buying gifts online it's important to have them marked as such on the package, or the recipients will be hit for the tax. If you are buying gifts for a number of people at the same address and you don't want them to be presented with a less-than-festive tax bill, then you might consider having the items shipped individually, instead of in one parcel. There are also non-negotiable administration fees which the delivery companies charge for paying your tax. An Post levy a flat €5 fee. FedEx delivers the goods before following up with an invoice of €10, plus €2.10 in VAT, while UPS has similar charges but demand cash on delivery.
Despite the taxes and charges, money (and hassle) can still be saved by taking your business online. If you buy from well established retailers using secure web pages, your credit card details will be safe and you will actually have more consumer protection than high-street shoppers. In addition to your existing rights, every online purchase (from legitimate retailers) comes with a seven-day cooling-off period which allows you return the item if you don't like it. This does not apply to auction houses such as eBay, and it doesn't cover plane, train or concert tickets or hotel bookings.
