Online bargain hunters may not be getting quite as good a deal as they thought when they have to pay customs duty on goods they buy from abroad, HM Revenue & Customs has warned.

Import duties are levied for goods from outside of the EU and VAT is applicable on purchases made outside of the UK. These must both be paid when the goods arrive in the UK.

Both taxes are applicable whether the goods are purchased or sent as a gift, whether they are new or used or whether the goods are for your private use or for sale.

The duty-free allowances for travellers arriving from outside the EU do not apply on internet purchases. VAT must be paid if the value of the goods is £18 or over whilst customs duty must be paid if the amount of duty is £7 or more.

Customs Anti-Smuggling Manager Phil Colclough said there was a lot of confusion over import taxes.

"Many people often don't realise that they have to pay charges on purchases delivered from overseas. We don't want to put people off internet shopping, where there are undoubtedly bargains to be found.

"However, we do want to make sure that online shoppers are quite clear about the full costs involved, and that there are no unpleasant surprises when the postman knocks at the door," he added.