Luxembourg's Customs and Excise Agency has provided clarification on post-Brexit e-commerce in the United Kingdom.
As the UK left the single market and the European Union customs union on 1 January 2021, online purchases made in the UK by Luxembourg residents are subject to a customs declaration as well as to payment of value added tax (VAT), excise duties and possibly customs duties.
Following the entry into force of the trade and cooperation agreement between the EU and the UK, “Made in UK” goods will, in principle, be exempt from customs duties. Only VAT and, where applicable, excise duties will be due.
Goods which are, for instance, "Made in China" or "Made in USA", and are purchased online in the UK will be subject to the payment of customs duties as well as VAT and, where applicable, excise duties.
In customs clearance, the carrier, postal operator or express operator most often requires related costs such as presentation costs or costs of completing customs formalities. He / she invoices and collects these fees for the purposes of establishing the customs declaration.
The Customs and Excise Agency recalled that it was responsible only for the collection of VAT, excise duties and any customs duties.