Expansys UK, Irish VAT?

Kotek Besar

If I buy something from Expansys UK for shipping to Ireland, VAT is charged at the Irish rate of 21.5%. That's fine, but does the VAT charged get passed on to the Irish Revenue, or to the UK's?

Reason being, I'm thinking of buying this scooter, and, being as it's considered a brand new imported vehicle (less than 6 months old, less than 6000km's on the clock), when registering it in Ireland the Revenue want me to pay VAT to them @ 21.5%.

Thing is, if I've already paid VAT @ 21.5% to Expansys, and if this is indeed passed on to the Irish Revenue, are the Revenue correct in asking me to pay 21.5% to them?

When I called my local VRO today, the woman said that, being as it's an imported new vehicle from the UK, I certainly do have to pay them VAT @ 21.5% - but I can claim the UK VAT back. But the 21.5% VAT already paid to Expansys is not UK VAT..is it?

So confused.

dbran

Hi

The information is given in the VAT guide Section 5.6. which is on revenue.ie.

Essentially I understand you are an individual and you are accepting delivery of a "new means of transport" in Ireland from a dealer based in the UK.

These sales are always intra-Community supplies and any person acquiring a
new means of transport (ie you...) must always pay VAT in the EU Member State of arrival which in this case is Ireland. The revenue are therefore correct, you owe them the VAT and most importantly you are the person liable to pay (so they will be chasing you!!!!).

I do not believe the UK dealer should be charging you any Irish VAT at all and you should ask for it to be refunded to you by them.

If they charge you UK VAT 15% then you should go back to the dealer and show them that you have paid Irish VAT for the vehicle and they must refund you the UK VAT once you show them the evidence such as a receipt from revenue etc that the VAT has been paid.

I believe this is how it works!

Kind Regards

Dbran

Kotek Besar

Appreciate the info, Dbran.

Thing is, if it's UK VAT that they're charging me, why isn't it 15%? Why are they charging me 21.5%? Note that, during checkout, VAT @ 15% is changed to VAT @ 21.5% as soon as an Irish shipping address is entered.

If it is indeed Irish VAT that I'm paying to Expansys, and so duly passed on by them to the Irish Revenue, that means I've already paid Irish VAT on the item, no? And in which case, why should I pay Irish VAT again?

I can understand if it was UK VAT I was paying to Expansys. I'd fully expect to pay Irish VAT to the Revenue, @ 21.5%, then claim UK 15% VAT back later.

dbran

Hi

I believe that Expansys may not be fully aware of the correct rules regarding the sale of new means of transport into other EU states.

If it was parts or accessories that they were selling to you, they would be correct to charge you Irish VAT as this would be classed as "distance selling". (assuming that their total sales to Ireland were such that it exceeded the threshold for them to register for Irish VAT of 75k).

However new means of transport are not subject to this rule as earlier posted. Therefore they should not be charging you any VAT on this transaction, UK or Ireland, at all.

You will need to get this VAT back from them or you may indeed find yourself paying twice as you are the person who is liable to pay the VAT and not the Uk dealer.

You have no real way of knowing for certain whether the VAT that you have paid to Expanys is paid over to UK or Ireland especially as they arn't meant to charge it anyway.


Hope this helps


Dbran

misspiggy40

Hi there. Check out if Expansys is registered for Vat in Ireland. The reason I say this is that you mentioned that the rate changes when you put in an Irish address. There is a rule about mail order/distance selling where if the company sells over a threshold, it was €35,000 pa but I am not up to date, into a country they must register for Vat there. It strikes me that Expansys would be such a company. That would mean you would have paid the Irish vat and will have an Irish vat invoice and will not have to pay it again.

dbran

Hi

Sorry Benifa, I just noted the scooter that you are buying is an electric vehicle with a motor power of only 1500 watts. It does not quailfy as a "new means of transport" and in this case distance selling for VAT purposes would apply.

This would mean you just show revenue the evidence that you have paid the VAT to Espansis with a valid Irish VAT invoice and let them inspect the scooter that it ties in with the spec of the manufacturer.


Dbran