Those of us with a smattering of finance training will spot an arb here. But I trust that the good people of NI will not stoop to the level of making personal profit by exploiting foundational cracks in the wonders of Brexit.not exactly VAT but it's a start
If you spend more than £390 in shops elsewhere in Europe this summer, get ready to pay customs duties and VAT on your return – which can easily add 20% or more to the price paid.
Navigating the rules is not easy. You have to declare where the item was made as well as where it was bought. That €500 item of adult clothing bought in Spain comes with a £99 charge if it was made outside the EU but £86.08 if made inside.
If you live in Northern Ireland, then it’s a completely different story, with the province treated as if it is inside the EU for customs purposes. That means the tax on an item of adult clothing bought in Barcelona and taken home to Belfast is zero.
+ an American.It’s probably a significantly limited arbitrage. Once you hit a certain turnover you might have to register for VAT at which point the arb disappears and you simply get embroiled in VAT (invented by continentals) paperwork.
In Australia, they'd give you a 4-year prison sentence for that carry on.In practice it’s completely different. In my experience when you make a declaration to the very nice and reasonable British customs person they say, “Nah, it’s alright, mate.” If the goods cost a significant amount then they say, “How many people in your party? Including children, stuffed animals, cremated remains, etc.?” You answer and they say, “You’re alright then, it’s one allowance each.”
But don’t let me stop you. As I’ve said, it’s the Age of Hysteria after all.