Amazon-vat

breakemall

I have been doing a few big ticket item purchases from Amazon lately.

Noticed yesterday that the price in the e-mail confirmation was different to what I had seen on the Amazon site so I contacted them.

The response said that when you make a purchase now, they deduct the UK vat and add on the new vat based on the Irish vat rate.

Never heard of this before. So if I buy an item directly from a UK supplier I pay the UK vat rate but if I use Amazon I pay the Irish rate. So much for being in the EU?

AlmightyCushion

breakemall wrote: »

I have been doing a few big ticket item purchases from Amazon lately.

Noticed yesterday that the price in the e-mail confirmation was different to what I had seen on the Amazon site so I contacted them.

The response said that when you make a purchase now, they deduct the UK vat and add on the new vat based on the Irish vat rate.

Never heard of this before. So if I buy an item directly from a UK supplier I pay the UK vat rate but if I use Amazon I pay the Irish rate. So much for being in the EU?

If a company sells more than a certain amount (I think it's €90,000 but I'm not sure) to people in a country it must apply that country's VAT rate. Amazon sells more than that amount to Ireland so has to charge Irish VAT. Some other companies don't so will charge UK VAT.

breakemall

I now know that, until yesterday I did not.

It just goes to show, how many of us buy on line thinking it is a certain price and check to make sure that is what we paid in the end?

Lesson learned!

As a matter of interest, does the vat charged in the UK then come back to Ireland?

Atomic Pineapple

When you enter an Irish address on Amazon.co.uk they change the price to show you the total including the Irish Vat before you purchase so you should have seen the actual price you paid before clicking the buy button.

If you have a parcel motel address for Northern Ireland in your account you can switch between it and an address in the Republic and see the price change as the different countries Vat rates are applied.

breakemall

I know, it sounds "simples"... but the price change does not come until the last stage so I never noticed it before now. Lesson learned.

But my question now is does anyone know if the revenue here get the full vat, or just the part in excess of the UK rate, or none of it?

sconhome

breakemall wrote: »

As a matter of interest, does the vat charged in the UK then come back to Ireland?

No. It goes to the UK exchequer.

nompere

Amazon.co.uk are registered for VAT in Ireland, and account to Irish Revenue for the VAT they collect from Irish customers. If you look at the invoice it will show their Irish VAT number.

The threshold above which a distance seller must register for Irish VAT is just €35,000. The compliance required is one of the reasons why some UK sellers won't deliver to Ireland.

nompere

sconhome wrote: »

No. It goes to the UK exchequer.

Nonsense.

breakemall

We live and learn. Every day is a school day.

ohnonotgmail

breakemall wrote: »

I know, it sounds "simples"... but the price change does not come until the last stage so I never noticed it before now. Lesson learned.

But my question now is does anyone know if the revenue here get the full vat, or just the part in excess of the UK rate, or none of it?

The VAT amount goes to the revenue commissioners here.

sconhome

nompere wrote: »

Nonsense.

Really?

Enlighten me as to how if UK vat is charged on a consumer purchase how it may make its way to Ireland?

sconhome

sconhome wrote: »

No. It goes to the UK exchequer.

nompere wrote: »

Nonsense.

sconhome wrote: »

Really?

Enlighten me as to how if UK vat is charged on a consumer purchase how it may make its way to Ireland?

Ignore this.

I assumed in the phrasing of the OP about "VAT charged in the UK" rather than in the case of IRL registered VAT transactions.

nompere gave the right answer above mine regarding thresholds etc

jack presley

sconhome wrote: »

Really?

Enlighten me as to how if UK vat is charged on a consumer purchase how it may make its way to Ireland?

It's already been established that Amazon charge the Irish rate of VAT for purchase to Ireland. Why would they charge the Irish rate of but then pay it to the UK Exchequer? That makes no sense.

Edit - ignore as poster has answered his/her question.

rubadub

nompere wrote: »

The threshold above which a distance seller must register for Irish VAT is just €35,000. The compliance required is one of the reasons why some UK sellers won't deliver to Ireland.

There is a uk site selling protein powders, these are 23% vat here and zero vat in the UK. Many Irish people bought from them, too many, so it went about €35,000 and they had to charge Irish VAT.

I guess some companies could go into loops like this, when they charged vat they would have gotten significantly less sales that year to Ireland so I wondered if the next year are they exempt again if it fell below €35,000, and then repeat the cycle all over again.

There are a few other items which are zero vat in the UK but 23% here, like cycling helmets. So it can be much cheaper to use parcel motel/wizard for these. Some may prefer to use the likes of amazon knowing that at least the VAT is going to our own funds.

ohnonotgmail

rubadub wrote: »

There is a uk site selling protein powders, these are 23% vat here and zero vat in the UK. Many Irish people bought from them, too many, so it went about €35,000 and they had to charge Irish VAT.

I guess some companies could go into loops like this, when they charged vat they would have gotten significantly less sales that year to Ireland so I wondered if the next year are they exempt again if it fell below €35,000, and then repeat the cycle all over again.

There are a few other items which are zero vat in the UK but 23% here, like cycling helmets. So it can be much cheaper to use parcel motel/wizard for these. Some may prefer to use the likes of amazon knowing that at least the VAT is going to our own funds.

in order to stop paying irish vat their turnover would have to drop below the threshold and then they would have to de-register with the revenue commisioners. if sales subequently go above the threshold they would have to register again. for a company with sales hovering around the threshold limit this could end up as an admin hassle.