Nike online charging vat on children's shoes 23%

Grawns

I've just sent them an email querying this but as far as I know and having checked the revenue site, there is no VAT on children's shoes up to size 38 (5 1/2). My daughter is a size 2 and in the UK there is zero vat up to size 3 I think.

Bit of a puzzler

rubadub

Is there anything gimmicky about them? I see "heelies" are excluded

http://www.revenue.ie/en/tax/vat/rates/decision-detail-04857.jsp

Grawns

No nothing gimmicky, football boots and runners

ohnonotgmail

where are you seeing the mention of VAT on the NIKE site? If you add a pair of childrens trainers to the cart there is no mention of VAT.

rubadub

Post a link to the site, are you sure its the official nike site. There will be loads of fake ones like www.nike-ireland-honest-we-are.com

Grawns

I have ordered maybe 5 times and I have all the invoices. The pdf with the mention of VAT is called payment overview in their email ( they send 4 emails for each order) and it's the only time I notice VAT mentioned. It's on more than one invoice but it's the 1st time I noticed! See attached for screenshot.

Anyway it's the official Nike site

There's a further 20% OFF sales items with code SU716 hence the discount. until 11th JULY

ohnonotgmail

They definitely should not be charging you vat. Let us know what they say.

Grawns

ohnonotgmail wrote: »

They definitely should not be charging you vat. Let us know what they say.

Will do, they owe me around €30. Bit of a scandal.

rubadub

Have you any idea how their prices compare to other shops, both adult and kids?

i.e. if both the kids and adult runners are say 10% cheaper than lifestyle sports then I would guess they might not actually be charging VAT. It could be just an automated invoicing software which gets the selling price and works backwards stating what the VAT is.

However the original price might not have had VAT added in the first place.

ohnonotgmail

rubadub wrote: »

Have you any idea how their prices compare to other shops, both adult and kids?

i.e. if both the kids and adult runners are say 10% cheaper than lifestyle sports then I would guess they might not actually be charging VAT. It could be just an automated invoicing software which gets the selling price and works backwards stating what the VAT is.

However the original price might not have had VAT added in the first place.

That did occur to me but would that not mean that they are remitting vat that they have not actually collected? If their invoicing software calculates it as vat then it has to go somewhere. I think it is unlikely though because every item in their inventory would have an associated vat rate. I doubt they are blindly applying a rate of 23% to all products. I'm even more curious now as to what they are doing.

Grawns

Here's an example from January where they didn't charge VAT on one pair my daughters shoes but they did on the 2nd pair

Grawns

And here's an example from October where they charged VAT on adult pair but 0 rate on my daughters shoes.

Grawns

"I hope you are well!

I am sorry to hear about the issue you experienced regarding the VAT on your order, thank you for bringing this issue to our attention.Rest assured I am here to help.

I have discussed the case with my senior team, they have advised that the order may incorrectly show what the VAT would be at 23%, but as this is a child order, this amount will not be taken into account in the overall price.

The full amount charged for the for the two items on the order amounts to 53.39, taking into account the discount code. Is this the amount you have been charged?

If you have statement that shows the VAT has been charged, I would be more than happy to review it with my senior team.

I hope this information has helped!

All the best"

If you look at the 1st invoice I attached it's pretty clear to me that VAT has been applied. As there is a net price and then an extended price.

Looks like they've made a mess here.

Am I correct?

ohnonotgmail

it would seem to me that you are. i would query it with them again. especially the order that shows vat on one pair of childrens shoes and no vat on another pair.

Grawns

I just did that. I'm very curious as to their response:eek:

Grawns

That did the trick! They can see there's an issue and they're investigating.

Grawns

I've received a reply from our VAT manager:

"According to the terms and condition on nike.com:
The product prices displayed on the Website are inclusive of Value-Added Tax (VAT).

The gross amount would not change even if the invoice have been issued with 0% VAT.

If the invoice is issued with incorrect VAT rate it means Nike paid more VAT towards the Tax Authority but we have not collected more money from you.
The gross price is the same on the invoice as it is on the website."

I hope this information has helped. If you have any further questions, please feel free to get back to me