Packages arriving from outside the EU will incur VAT charges

Packages arriving from outside the EU will incur VAT charges from 1 July onwards whatever their value.

This comes after the European Commission abolished the VAT exemption on packages with a value of less than € 22.

To facilitate processing, the European Commission has introduced a system whereby those purchasing products from outside the EU from next July will be able to pay VAT on payment for products with a value up to € 150 and in that case, when the item arrives at its destination, there will be no further charges.

Maltapost chief operating officer Adrian Vassallo said that if customers start paying VAT on their purchases they will avoid incurring processing fees ranging between € 1.50 and € 20.

“If you have an item worth € 10 and you buy it from a VAT collection company, it will cost € 11.80, you will pay 1.80c VAT and when it arrives in Malta Maltapost will declare it to Customs. On these items where VAT has been collected earlier, there will not be an additional charge when an item is released by Customs “.

Vassallo said the tariff was introduced to cover the increase in work for processing and collecting VAT on parcels arriving from outside the EU which will also involve work by Customs officials.

“We will insert it in the Customs system then we will send an email or paper notification to the customers to pay the tariff and VAT online and if they pay online, the package is distributed and if they don’t pay online the package will be collected from the post office “.

Customs Director General Joseph Chetcuti said that Customs had upgraded its systems to enable the tax and duty rate to be calculated in a shorter time.

“Because the volumes that will be entering the system are huge, both mailed parcels and courier parcels will obviously not affect what needs to be examined because we don’t examine everything but only that selected by the -system “.

VAT will also be collected from parcel delivery companies which may have different fees for processing postal items sourced from outside the EU.