Paddy-Tax

gerry87

Apple Ireland is an average of 28% more than UK and 25% more than US...

No point to this... just kinda crazy. Why do they sell any in ireland?

babypink

its not just a paddy tax - its a Euro tax....same deal for the French and Germans etc. as it is for us. While our higher sales/VAT rates can't account for all of it - the clear net result is that Apple (and every other US multinational) pull in a much higher margin here in Europe than back home (once these profits are converted to Dollar and accounted for in their quarterly results). This highlights the inherent problem when you're dealing with fluctuating exchange rates - particularly now that the Euro has strengthened against the $ and £.

They tend to charge the same numerical value in Euro as in Dollar - though i see that the numerical value is now slightly less in Euro.... e.g. iMac $1199 v. €999.

Right now the absolute best value is to be had by buying in the UK - be it mainland or the North.

gerry87

Hmm, you're right. Looks like spain is the only cheaper country in europe. The 1-1 exchange rate always strange...

Surely in a logical world, everybody would buy from the uk, apple would see huge demand in the uk, and zero in the Eurozone, driving the prices to the same level.

Even taking the US, do they do something to stop you ordering from the US? If so could there be some sort of company set up with an address in the US to get around it?

jahalpin

With current exchange rates etc. the Irish price is actually less than the US price.

If you take the €999 v $1199 Macbooks;

Irish (ex VAT @21.5%) 822.00
US (@ 1.365 (cash purchases rate at Bank of Ireland branch today)) = 878.38

The retailer does not get to keep the VAT charged on the product, it must be remitted to the Revenue so must be excluded from the calculation

It would be illegal to import goods into Ireland without paying the VAT and duty on them.

The rates on XE.com are the interbank rates and customers cannot get these rates, so using the actual rates offered for cash is more accurate

babypink

nonsense - the only real metric is to look at the prices that consumers actually pay.

Ireland - €999
US (NYC for argument) - $1199 + total tax of 8.375% = $1299 = €951.64 (using your rate) / €941.30 (@ 1.38 rate - Apple probably have a much tighter spread v. the spot rate than ordinary consumer)

Either way - we're still more expensive!

As for ordering from the US - Apple will not ship here. Even if they did - they would have to declare value and you would be hit for VAT on the declared value + carriage. Indeed it is illegal and shall not be discussed here.

Elessar

With the way the euro against the pound is now, you would be much better off driving up/getting the train to Belfast and buying a new mac there. You would save a few hundred:

For example:
Baseline Macbook Pro -

€1799 Rep. of Ireland
£1369 Belfast = €1429

Even better with a student discount.

spooner_src

If have travel to the US now Business or Pleasure then happy days for a while, I picked up a new 13in Macbook for my other half (Wife) in a tax free state, worked out approx. 800 euro....Happy Days.

whippet

it's not a paddy-tax by any means .. it is just unfortunate due to euro sterling exchange.

When Apple release a new product the pricing is decided upon at the current exchange rates .. if it fluxuates so will the value across different currency zones.

If you take the mac pro v's the new mac book pro .. the cost differences for the mac pro are massive in comparison, as this was introduced when sterling was about 25% stronger.

zappairl

Just bought a 13" macbook today from MacWarehouse.co.uk, i saved a total of €260 compared to the price on apple.ie. This is great news for me...but just means more money going out of the irish economy again. So it's good for me.... bad for ireland.

minikin

I'm on the lookout for a 30" cinema display at the moment...
apple.ie = €1,799 (€1,480.65 + 21.5% vat)
apple.co.uk = £1,173 (£1,020 + 15% vat) or (€1,064+vat)

Over €400 extra... after factoring in vat and exchange rate differentials.
Paddy MacTax

heggie

remember tho that acd is very very old stock, there will probably be new led ones to go along the with new 24" announced tomorrow.

minikin

Cheers for the heads up heggie... thought the new ones were external displays for the mac books only.

thecommander

minikin wrote: »

I'm on the lookout for a 30" cinema display at the moment...
apple.ie = €1,799 (€1,480.65 + 21.5% vat)
apple.co.uk = £1,173 (£1,020 + 15% vat) or (€1,064+vat)

Over €400 extra... after factoring in vat and exchange rate differentials.
Paddy MacTax

Apple France €1799

Apple Spain €1799

They must have Irish Paddy tax too?

gerry87

Ok, I accepted it's not a paddy-tax, I hadn't looked at other eurozone prices. However something should crack... either all eurozone prices should fall in line with england/usa or england/usa prices should fall in line with the eurozone.

Maybe the US should be taken out of that since they have a pretty successful barrier to importing macs from there. Which would leave UK vs Eurozone... In rational companies the most likely result would be increasing prices in UK to match the (what should be) enormous jump in demand. But the past $1:€1 exchange rate shows apple aren't really bothered by these things.

Then again, who would bump prices up in a recession... which would mean eurozone prices should fall to parity with UK prices.

Again, no real point to this... just ramblings

thecommander

gerry87 wrote: »

Ok, I accepted it's not a paddy-tax, I hadn't looked at other eurozone prices. However something should crack... either all eurozone prices should fall in line with england/usa or england/usa prices should fall in line with the eurozone.

Maybe the US should be taken out of that since they have a pretty successful barrier to importing macs from there. Which would leave UK vs Eurozone... In rational companies the most likely result would be increasing prices in UK to match the (what should be) enormous jump in demand. But the past $1:€1 exchange rate shows apple aren't really bothered by these things.

Then again, who would bump prices up in a recession... which would mean eurozone prices should fall to parity with UK prices.

Again, no real point to this... just ramblings

So should the prices change with the currency markets?

minikin

They must have Irish Paddy tax too?

That's irrelevant, we're talking about a comparison on two prices on the same small island... there's no justification for any disparity.
If I order the monitor now, it is shipped from the UK... it's not like a quantity was purchased and held in stock here since a time when sterling was worth €1.60.

thecommander

minikin wrote: »

That's irrelevant, we're talking about a comparison on two prices on the same small island... there's no justification for any disparity.
If I order the monitor now, it is shipped from the UK... it's not like a quantity was purchased and held in stock here since a time when sterling was worth €1.60.

Well the post made out that we (Ireland) are being diddled out of a load of money because we're living in Ireland, when its not the case, the whole of Europe are.

minikin

I'm sure they're getting ripped off in Chile too... doesn't change the fact that they're tearing us a new one.