buying from uk...vat query

castle22

I bought some running gear from the Uk and noticed that I was chargin vat @ 21.5% (our vat rate) I assume I should have paid 15%(uk rate) I queried this and got this reply

Thank you for your email. Please note that we are required to register to VAT in any EU country where our sales to that country exceed that countries VAT threshold. Our sales to Ireland have exceeded the Irish VAT threshold so we have had to register for VAT in Ireland. Accordingly we have to pay VAT to the Irish Authorities at a rate of 21% so this is the VAT rate we apply to sales to Ireland.
We are only allowed to apply UK VAT rates on sales to other EU countries if our sales to those countries are less than their VAT thresholds. Thank you

is this correct?

jnh

very complicated rules, generally VAT is chargeable where the goods are located at the time of sale. if the goods were located in UK and transported to ROI then UK VAT would apply. if the goods were stored in ROI and dispatched in ROI then ROI VAT was chargeable.

El Del

What the company is saying is correct. If their sales to non-VAT registered customers in Irleand has exceeded the "distance sales" threshold of €35,000, then they must register and charge Irish VAT, even if the goods are shipped from the UK.