Added VAT number to Amazon and now...

cormie

I've been using Amazon for years for buying both personal and business use items. With my business purchases, depending on the seller, I'd either put it down as an Irish purchase (where Amazon are charging 23%) or UK etc and just claim the usual way. With personal purchases, I just pay whatever it with a different card and that was that.

I saw recently the option to add a VAT number, so I threw mine and forgot about doing it. A week or two passed and I go to buy a personal item and notice I'm not being charged VAT on it. I thought it was a glitch and I was getting a bargain at first, but then realised it's just that no VAT is applied.

I can't see a way to pay the VAT on personal purchases now and know that's a no no to use your VAT number for non business purchases to get it cheaper, so I don't want any problems to come of it if I ignore it (and keep paying cheaper prices ).

What have others done in this situation, is there a way to choose to pay VAT or do you just need to remove the VAT number entirely on the account if you're going to be using it for personal purchases too?

Any feedback appreciated

Mrs OBumble

Just set up a 2nd totally different account, and use that for personal purchases.

Joseph

Mrs OBumble wrote: »

Just set up a 2nd totally different account, and use that for personal purchases.

Spot on, this is what I have done.

Contact Amazon and ask them to revoke the VAT number associated with the account. Continue using that account for personal purchases and set up a separate account for business purchases with your business email.

As for the VAT you should have paid and didn't, I'm not sure what the protocol is here.

cormie

I think I'd rather just delete the vat number and just do my books the way I had been doing for the last few years than make a new account. There'd be a clear advantage with most UK suppliers to add a vat number and not be charged UK VAT, but since Amazon are charging Irish VAT due to the volume of sales they do here, then it can be claimed back as any Irish purchase.

Joseph

cormie wrote: »

I think I'd rather just delete the vat number and just do my books the way I had been doing for the last few years than make a new account. There'd be a clear advantage with most UK suppliers to add a vat number and not be charged UK VAT, but since Amazon are charging Irish VAT due to the volume of sales they do here, then it can be claimed back as any Irish purchase.

Hmm. Are you sure you can reclaim Amazon VAT back as if you would an Irish company?

cormie

Yeah, it's charged at 23% instead of 20% UK rate, that's why on sold by amazon products, once you select an Irish shipping address, the final price rises to account for the extra 3% VAT.

Joseph

Yeah but I think that's from a recent change to VAT regulation where the country you are purchasing from has to charge you VAT at the rate of the country you are in. It doesn't mean that you can treat it like purchasing something from an Irish company with VAT where you can later reclaim it.

I'm 80% certain on the above, but no expert.

cormie

Hmm. Maybe someone else can clarify. I thought it was once a fordin company exceed a threshold of trade within the customers country, they have to register for VAT there and then pay that 23% to the Irish govt as opposed to the UK govt in the case of Amazon on all sales to that country? So me buying for a VAT registered business, I just treat it like any other sale within Ireland?

Joseph

Yeah I'm not sure cormie, that could be the case but I'd be wanting to clarify - maybe you can ask your accountant?

sconhome

I know when I buy from abroad anytime VAT applies I provide my VAT number and the exemption applies no VAT is charged but the rate applied in most cases is 23% as I'm buying from Ireland.

cormie

Yeah, that's the case buying from abroad with most suppliers as most suppliers wouldn't be selling over the threshold to Ireland to enforce them to register for VAT here, but Amazon do so they charge the 23% so I can't really see any advantage to having the VAT number on the account.

Joseph

I think what sconhome means cormie is that regardless if you are purchasing something from another EU country, you are charged the rate of VAT from the country you are in - that's why it's coming up as 23% VAT. Now the thing you are saying about them having to set up here because of thresholds, I don't know about but I don't think that's the case - but it is worth double checking..

cormie

I don't think that's the case. If you are purchasing from another EU country and VAT is included in the sale, they are meant to charge 0% VAT as long as you can provide a valid VAT number from another EU country. If they don't charge 0% VAT (such as paying at an automatic toll booth in France for example), then that countries VAT rate is charged (19% for France say) and it's then up to you to claim through the French system to get this back.

Neon_Lights

cormie wrote: »

I've been using Amazon for years for buying both personal and business use items. With my business purchases, depending on the seller, I'd either put it down as an Irish purchase (where Amazon are charging 23%) or UK etc and just claim the usual way. With personal purchases, I just pay whatever it with a different card and that was that.

I saw recently the option to add a VAT number, so I threw mine and forgot about doing it. A week or two passed and I go to buy a personal item and notice I'm not being charged VAT on it. I thought it was a glitch and I was getting a bargain at first, but then realised it's just that no VAT is applied.

I can't see a way to pay the VAT on personal purchases now and know that's a no no to use your VAT number for non business purchases to get it cheaper, so I don't want any problems to come of it if I ignore it (and keep paying cheaper prices ).

What have others done in this situation, is there a way to choose to pay VAT or do you just need to remove the VAT number entirely on the account if you're going to be using it for personal purchases too?

Any feedback appreciated

Technically its foreign vat which can be reclaimed by the org selling the item I would believe.

sconhome

cormie wrote: »

I don't think that's the case. If you are purchasing from another EU country and VAT is included in the sale, they are meant to charge 0% VAT as long as you can provide a valid VAT number from another EU country. If they don't charge 0% VAT (such as paying at an automatic toll booth in France for example), then that countries VAT rate is charged (19% for France say) and it's then up to you to claim through the French system to get this back.

Yes when it applies to personal VAT you pay the local VAT rate unless the seller is above the thresholds in which case you are charged your local VAT rate (23%)

If you are business buying then on production of your VAT number you can claim exemption but again some small business may not be operating their books this way and charge you their local VAT rate which you then have to go about claiming back.