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Loopholes for Northern shops?

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  • 25-11-2008 3:35pm
    #1
    rubadub
    Registered Users Posts: 32,380 ✭✭✭✭


    Just wondering if there are any loopholes for northern shops to take advantage of? or for shoppers down here. Or have any happened in the past. I keep pointing out in threads that going up north could well be a false economy. I have seen mates fooling themselves with currency rates (e.g. taking the XE rate as what they are going to get), they do this to overemphasis the "bargains" they got. But also many do not take the fuel costs into account, and the time needed. e.g. you could have worked 4 hours overtime and shopped in town that saturday and would be up cash, with possibly less stress.


    Anyway a sort of loophole could be a shop selling stuff online and then having a truck come to dublin and you have to go collect it in person, so saving on delivery if enough people buy. Or the likes of tescos may be able to accept your order on the UK site and their prices and possibly deliver out of dublin, without paying irish VAT.


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    #2
    jhegarty
    Registered Users Posts: 6,438 ✭✭✭jhegarty


    unless the company has no presence in Ireland they have to charge Irish vat when sending Ireland...


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    #3
    rubadub
    Registered Users Posts: 32,380 ✭✭✭✭rubadub


    jhegarty wrote: »
    unless the company has no presence in Ireland they have to charge Irish vat when sending Ireland...

    HMV send to Ireland out of jersey and AFAIK they do not pay irish VAT,


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    #4
    shellyboo
    Registered Users Posts: 5,883 ✭✭✭shellyboo


    rubadub wrote: »
    HMV send to Ireland out of jersey and AFAIK they do not pay irish VAT,


    HMV has an Irish presence, they operate in Ireland. You pay Irish prices and Irish VAT on your goods, HMV pays the Irish government. Where they send you the stuff from is their business. If it makes more sense for them to ship from the UK, they'll do so.


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    #5
    ejmaztec
    Registered Users Posts: 24,019 ✭✭✭✭ejmaztec


    If an ex-Ireland EU business ships goods into Ireland, then that company can charge the vat rate prevailing in its own country until the total exported annually into Ireland reaches a certain figure (can't remember the figure - could be €500,000?pa). Above that figure they would have to charge the Irish vat rate.

    If everybody went mad with their online purchases, it wouldn't take long before having to pay the extra vat.


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    #6
    jhegarty
    Registered Users Posts: 6,438 ✭✭✭jhegarty


    rubadub wrote: »
    HMV send to Ireland out of jersey and AFAIK they do not pay irish VAT,

    things get more complex when it comes to jersey , as it's not part of the eu. I am not sure how it works in that case.


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    #7
    jor el
    Closed Accounts Posts: 16,713 ✭✭✭✭jor el


    shellyboo wrote: »
    HMV has an Irish presence, they operate in Ireland. You pay Irish prices and Irish VAT on your goods, HMV pays the Irish government. Where they send you the stuff from is their business. If it makes more sense for them to ship from the UK, they'll do so.

    When you buy in the shops, yes. When you buy from HMV's online shop though, there is no VAT included in the prices. If it is below €22, then you are VAT exempt, if it's more, then you should pay, but usually only if your asked to.


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    #8
    Nody
    Moderators, Category Moderators, Arts Moderators, Business & Finance Moderators, Entertainment Moderators, Society & Culture Moderators Posts: 18,279 CMod ✭✭✭✭Nody


    jhegarty wrote: »
    things get more complex when it comes to jersey , as it's not part of the eu. I am not sure how it works in that case.
    Not really, Jersey is like buying from US or China so you're responsible to declare and pay the VAT when exceeding 22 Euro value.


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    #9
    darc
    Closed Accounts Posts: 677 ✭✭✭darc


    The good news is I've seen some shops declare they have lowered prices, but its seems to be the smaller independents rather than the large multiples.

    A local shop here in Carlow states it uses a 1.25 exchange rate and are claiming to be 30% cheaper than Debenhams for exact same items.

    The probelm is too many people think that the large UK stores are cheaper than independents when the opposite is the case in everything except groceries.

    EG Doyles Hardware Carlow is about 15% cheaper than Woodies for wood, nails & most garden stuff. Swans Electrical Carlow is cheaper than Currys.


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    #10
    BaconZombie
    Registered Users Posts: 8,811 ✭✭✭BaconZombie


    Also not everyone gets paid overtime.
    jhegarty wrote: »
    unless the company has no presence in Ireland they have to charge Irish vat when sending Ireland...


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    #11
    rubadub
    Registered Users Posts: 32,380 ✭✭✭✭rubadub


    jhegarty wrote: »
    unless the company has no presence in Ireland they have to charge Irish vat when sending Ireland...
    shellyboo wrote: »
    HMV has an Irish presence, they operate in Ireland. You pay Irish prices and Irish VAT on your goods, HMV pays the Irish government. Where they send you the stuff from is their business. If it makes more sense for them to ship from the UK, they'll do so.
    OK, but jhegarty was saying if they have "no presence in Ireland". They do have presence here, and UK, and if you order from www.hmv.co.uk it is shipped from Jersey. But forget about Jersey, if I ordered from hmv.co.uk and it was shipped from the UK, then if jhegarty is right they must charge irish VAT, but I don't think they would.


    ejmaztec wrote: »
    until the total exported annually into Ireland reaches a certain figure (can't remember the figure - could be €500,000?pa). Above that figure they would have to charge the Irish vat rate..
    That seems more likely, I wondered why the big boys like pixmania & amazon began charging Irish VAT.

    Say HMV were under the limit. Could there possibly be a loophole where I walk into HMV, order on an ATM type machine in dublin, but order from the UK site, pay UK VAT, and a "courier" comes out the back room and hands me my "shipped" item. It would be bad press for HMV, but leaves the possibility open for some shady dealers.
    darc wrote: »
    EG Doyles Hardware Carlow is about 15% cheaper than Woodies for wood, nails & most garden stuff. Swans Electrical Carlow is cheaper than Currys.
    Many do this trick, powercity do it & woodies are very bad for it. They will have items like TVs cheap in comparison, then tell you other stuff is on sale. Many are oblivious to the usual cost of say lightbulbs. They see the big sign in woodies or powercity telling them it is a great offer and just believe it. I often see auld ones in tescos passing by big displays and blindly putting stuff in since it is "on offer", when the so called offer is the normal price.


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