This is how you avoid new import duties and delivery fees when buying from the EU (2023)

Like many others in lockdown, Victoria Farrar decided to treat herself to an online sale.

The 34-year-old actress paid £250 for a gown by French luxury brand Sundress on Jan. 12.

But she was shocked by the order for an extra £99 in tax when it was handed over days later.

When she asked what would happen if she declined the item, she was told she would be refunded the cost of the dress, less the £99 tax. Now she's stuck with an expensive dress that's too big.

Miss Farrar is one of tens of thousands of internet shoppers who have faced shocking accusations from EU retailers since Brexit.

Unexpected customs fees, administrative fees and VAT bills are wreaking havoc among customers, while some companies have suspended shipments until issues are resolved.

Here Money Mail explains the additional costs and how to avoid them. . .

Has VAT changed?

New rules, introduced on 1 January, are changing the way VAT is charged on purchases in the EU.

For customers over £135, tax is now charged at the point of delivery rather than the point of sale.

Previously, VAT would have been included in the online checkout, but now customers are being asked to pay it at their door – which can be an unexpected burden.

For goods under £135, the changes will affect EU retailers with UK stores worth less than £70,000 a year. These businesses used to pay VAT in their own country, but now they have to register for VAT in the UK.

However, some companies are still unaware of the rules and buyers have reported being asked to pay VAT twice, at the point of sale and on delivery. HMRC insists these claims were made by the post office in error.

Online marketplaces like Amazon or eBay deal with VAT.

The government says the new rules will ensure that EU and non-EU products are "treated equally" and that UK businesses "are not disadvantaged by competition from VAT-free imports".

And the tariffs?

Before Brexit, goods could move freely between the UK and the EU without import duties.

Goods costing more than £135 can now incur customs duties, which can range from 0% to 25%.

And any extras?

Post offices began charging buyers additional "handling fees" to cover administrative costs and additional customs checks.

For example, Royal Mail charges an £8 fee. DHL charges 2.5% of the amount paid for customs clearance with a minimum charge of £11.

Mastercard is also charging a fivefold increase in fees for Britons who shop at EU retailers with a credit or debit card.

It is likely to increase the price of anything purchased online, from a pair of Italian shoes to vacation expenses such as hotel stays or car rentals and theme park tickets.

The fee is imposed on EU companies and it is up to them to decide how to pass it on. Interchange fees are capped by the EU in member states, but this protection no longer applies to the UK.

this is fair

Consumer experts caution that percentage processing fees rarely reflect overheads. Credit card fees can be excessive, but banks are expected to pocket the increase.

Shoppers are also upset that companies are not upfront about new fees that make purchases unaffordable.

Miss Farrar says: “European companies really need to look after their British customers after Brexit.

"You need to be transparent about the additional costs and not try to hide them in the fine print or the backlash will hurt any future business and hurt the lowly consumer."

and the alcohol

Retailers have warned that a £12 bottle of wine bought in the EU can cost up to £1.50 more.

How have companies reacted?

Some EU specialist retailers have said they will no longer ship to the UK as a result of the changes.

Experts believe the situation will improve in the coming months as more EU retailers register with the tax office.

Do scammers make money?

ISPs and cell phone providers are warning customers that scammers will take advantage of the confusion. Some buyers have already reported questionable SMS and emails about customs fees.

m.dilworth@dailymail.co.uk