VAT Goods imported by parcel post

By agreement with An Post, VAT registered persons importing goods for use in their business by parcel post up to £200 in value are not required to pay VAT due at the point of entry if their VAT number is quoted on the customs declaration accompanying the parcel.

With effect from 1 January 1999 all such importations must be included in Box T1 on the VAT 3 return form. Traders entitled to input credit may set off any VAT deductible in respect of the parcel in Box T2 of the return. Thus in the case of persons entitled to full input credit the entries will be self cancelling with no net liability.

There is no change in the VAT treatment of parcels exceeding £200 where VAT will be paid as before.