Is it all Legal???How does this work??

Dazzler88

hey just wondering if anyone would be able to tell me how all the Oil Distributors in the North West are buying their fuel from a terminal in Derry.Is the VAT on Fuel in Northern Ireland not a lot dearer than down here???What revenue do they pay on this when their bringing it across the border???

MunsterCycling

Unless I'm mistaken this is VAT and Excise fraud!

TheInquisitor

VAT is 15% in britain atm. It normally is 17.5% but for one year they have temporarially dropped it. This is fraud. The difference between ireland and england would be 5.5%. A huge amount when you think about it. Over 6c/p in the difference between irish and england petrol per litre

Dazzler88

TheInquisitor wrote: »

VAT is 15% in britain atm. It normally is 17.5% but for one year they have temporarially dropped it. This is fraud.

i cant be fraud though because all the big companies are doing it.There all doing it all day everyday.Maybe they pay import duty on it????

snubbleste

Would you not consider phoning one of the oil companies in Letterkenny and asking them?

Dazzler88

snubbleste wrote: »

Would you not consider phoning one of the oil companies in Letterkenny and asking them?

ya i could but they wouldnt give that info to any Tom Dick or even Harry that calls.But its not just the oil companies in Letterkenny thats at it,im talking like all the companies in the North West,even Topaz and Texaco,so it must be legal,i just dont understand how it works..

Thoie

Presuming innocence, at a guess Derry is their closest terminal.

There is free movement of goods within the EU, so they buy the stuff in Derry (paying 15% VAT). They will have an invoice from that purchase saying something like 5,000 litres, blah blah. So once a week/month/quarter/year they calculate the duty due on 5,000 litres, and submit that to Customs through head office.

The Irish VAT rate on fuel is 21.5%(?), so when they sell it, they're obliged to charge the customer the 21.5% and the duty amount on each litre.

Revenue can, and will if they want, examine the invoices of the amount of fuel they've bought, versus the receipts for the amount of fuel they've sold, which will keep them honest.

There's probably an agreement in place with petrol stations that they can pay the import duty on a regular basis, as it would generate too much paperwork if they tried to do it on every delivery.

Dazzler88

Thoie wrote: »

The Irish VAT rate on fuel is 21.5%(?), so when they sell it, they're obliged to charge the customer the 21.5% and the duty amount on each litre.

thats the explanation i was looking for,thank you:D:Dwhy is fuel so dear down the north???the government duty must be steaper than ours?/?

Thoie

Dazzler88 wrote: »

thats the explanation i was looking for,thank you:D:Dwhy is fuel so dear down the north???the government duty must be steaper than ours?/?

From wiki:

From 2007-10-01 the main road fuel (petrol and diesel) duty rate in the UK was GBP£0.5035 per litre (GBP£2.2890/imperial gal or GBP£1.9059/US gal). The rate for biodiesel and bioethanol was £0.3035/L (GBP£1.3797/imperial gal or GBP£1.1489/US gal).[3] Value Added Tax (VAT), 15% from 2008-12-01 to 2009-12-31, is also charged on the price of the fuel and on the duty. At a pump price of 90.0p/litre (typical for petrol in mid December 2008), this would put the combined tax at 62.09p/litre, or approximately USD$3.49 per US gallon. Thus without tax, the retail price would be 27.91p per litre, making a combined tax rate of 222%.
The latest increase - to GBP£0.5619 per litre on unleaded petrol - came into force on 2009-09-01 and is planned to increase "on 1 April from 2010 to 2013 by 1 ppl above indexation in each year."[4]

Our excise duty is €0.29 per litre at the moment - from here.

Dazzler88

Thoie wrote: »

Our excise duty is €0.29 per litre at the moment - from here.

cheers for that so its all legal and above board.do you work in this industry???

Thoie

Dazzler88 wrote: »

cheers for that so its all legal and above board.do you work in this industry???

Nope, I'm just good with google

Of course, all my previous statements are working from the basis of innocent until proven guilty. If we want to work it the other way around, I can probably use google to prove that all fuel retailers in Letterkenny are selling freshly squeezed puppy juice in the pumps.

Dazzler88

Thoie wrote: »

I can probably use google to prove that all fuel retailers in Letterkenny are selling freshly squeezed puppy juice in the pumps.

i look forward to seein those results

Thoie

Dazzler88 wrote: »

i look forward to seein those results

Sorry for going OT, but this was too funny for a random phrase that popped into my head - the first google hit on puppy juice links Exxon with puppy juice!

Dazzler88

Thoie wrote: »

puppy juice links Exxon with puppy juice!

just googled the meaning of Puppy Juice-Definintion:Old British slang for Pre-ejaculate, pre-cum, or any residue from having ejaculated or urinated.:P:P

Thoie

Dazzler88 wrote: »

just googled the meaning of Puppy Juice-Definintion:Old British slang for Pre-ejaculate, pre-cum, or any residue from having ejaculated or urinated.:P:P

Yeah I had spotted that in the second google listing, and was too embarrassed to mention it at that stage I have learned something new today, and think I should stop now.

darc

Duty on petrol & diesel is 56.35p in the uk

Duty on petrol is 50.79c in Ireland
Duty on diesel is approx 42c in ireland.

Currently the refined fuels are about the same price before taxes & duties - so the difference in duty means an average 10c difference in retail prices at the pump.

As for distributors getting supplies of diesel / petrol in derry - at the port, fuel is in bond. Once it is put into a road tanker, duty becomes payable to the government of the country of delivery (in this case Ireland). It a standard way of doing business on dutioable products.

vat isn't an issue as its an intra eu sale and if the distributor has a vaild vat number vat is not applied on the cross border deal, but is applied when the distributor sells to a fuel station.

rotinaj

Thoie wrote: »

From wiki:

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Our excise duty is €0.29 per litre at the moment - from here.

That figure is from 2000. Its more like 55c pl plus V.A.T. at the moment