How will “Brexit” affect travellers and recipients of postal items?
Published: 11.02.2019
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During a meeting with residents of the city of Jēkabpils, specialists from the State Revenue Service explained what changes in the area of taxation would have to be taken into account if the United Kingdom were to leave the European Union without a transition period—in other words, without a withdrawal agreement. In this case, from 30 March this year, the United Kingdom would be a third country, and the free movement of goods between the European Union and the United Kingdom would no longer continue. This would significantly affect the receipt of postal items.
“If a person shops in an online store, they must remember that consignments worth more than 22 euros are subject to VAT. Consignments of this kind worth more than 150 euros are subject to both VAT and customs duty,” explains Marika Salmiņa, senior customs expert at the Customs Board of the State Revenue Service.
The second category is non-commercial postal items sent by one private individual to another—in other words, gifts. If the value of these consignments exceeds 45 euros, both customs duty and value-added tax must be paid; excise goods are also subject to excise duty.
“Brexit” will also affect travellers who bring goods from the United Kingdom into the European Union in their personal luggage by air or sea. “When crossing the European Union’s external border, one threshold must be known—430 euros. Customs duties, namely customs duty and value-added tax, are payable on goods exceeding this threshold. It should also be known that specific threshold quantities have been established for excise goods transported in personal luggage,” says Marika Salmiņa.
It should also be taken into account that the importation into the European Union from third countries of meat and meat products—including soups and other foods containing meat—milk and dairy products, as well as animal feed containing meat or milk, is prohibited.
Residents wishing to relocate to the European Union—for example, from the United Kingdom to Latvia—when the United Kingdom has already become a third country must take certain conditions into account so that they do not have to pay customs duty on their personal belongings transported from the United Kingdom to Latvia. “It should be taken into account that if a person has lived there for more than 12 months, and if the goods they wish to bring back to Latvia have been in their possession or use for more than six months, a written declaration by the person is sufficient. They apply to the Customs Board for permission to import their used belongings free of tax. Thus, they will not have to pay tax on property acquired while living in the United Kingdom,” explains Marika Salmiņa.
It should be taken into account that the tax relief applies specifically to the person changing their place of residence. This means that the person must either transport their belongings themselves or use a courier service or the postal service, which will then also help complete the customs formalities. The State Revenue Service emphasises that all these changes relating to the United Kingdom will take effect only if the United Kingdom leaves the European Union without a transition period.
The attachment contains more detailed information about the changes that will affect travellers and recipients of consignments if the United Kingdom leaves the European Union without a transition period.
Watch the video report here> https://www.youtube.com/watch?v=b05he7El2Tc
“If a person shops in an online store, they must remember that consignments worth more than 22 euros are subject to VAT. Consignments of this kind worth more than 150 euros are subject to both VAT and customs duty,” explains Marika Salmiņa, senior customs expert at the Customs Board of the State Revenue Service.
The second category is non-commercial postal items sent by one private individual to another—in other words, gifts. If the value of these consignments exceeds 45 euros, both customs duty and value-added tax must be paid; excise goods are also subject to excise duty.
“Brexit” will also affect travellers who bring goods from the United Kingdom into the European Union in their personal luggage by air or sea. “When crossing the European Union’s external border, one threshold must be known—430 euros. Customs duties, namely customs duty and value-added tax, are payable on goods exceeding this threshold. It should also be known that specific threshold quantities have been established for excise goods transported in personal luggage,” says Marika Salmiņa.
It should also be taken into account that the importation into the European Union from third countries of meat and meat products—including soups and other foods containing meat—milk and dairy products, as well as animal feed containing meat or milk, is prohibited.
Residents wishing to relocate to the European Union—for example, from the United Kingdom to Latvia—when the United Kingdom has already become a third country must take certain conditions into account so that they do not have to pay customs duty on their personal belongings transported from the United Kingdom to Latvia. “It should be taken into account that if a person has lived there for more than 12 months, and if the goods they wish to bring back to Latvia have been in their possession or use for more than six months, a written declaration by the person is sufficient. They apply to the Customs Board for permission to import their used belongings free of tax. Thus, they will not have to pay tax on property acquired while living in the United Kingdom,” explains Marika Salmiņa.
It should be taken into account that the tax relief applies specifically to the person changing their place of residence. This means that the person must either transport their belongings themselves or use a courier service or the postal service, which will then also help complete the customs formalities. The State Revenue Service emphasises that all these changes relating to the United Kingdom will take effect only if the United Kingdom leaves the European Union without a transition period.
The attachment contains more detailed information about the changes that will affect travellers and recipients of consignments if the United Kingdom leaves the European Union without a transition period.
Watch the video report here> https://www.youtube.com/watch?v=b05he7El2Tc
