Amazon price inflation on checkout

Carnmore

I am a regular Amazon purchaser. Each time I proceed to checkout the basket subtotal price inflates. I have notified Amazon and they are claiming it is due to the higher VAT rate in the Republic of Ireland.

I do not accept this as the applicable VAT rate is that of the country where the sale is transacted. The price inflation is also in excess of the 3% VAT differential between the UK and ROI.

My most recent order inflated from £68.90GBP to £72.53GBP at checkout. This issue occurs with each and every transaction. I am seeking a refund of the price differential for this and all previous transactions.

Has anyone had this issue with Amazon and resolved it?

wench

Any business doing over €35K of sales into Ireland must register and pay VAT here, so Amazon are correct
http://www.revenue.ie/en/tax/vat/leaflets/distance-sales-eu.html

Some items will go up more than 3%, for example books are 0% in the UK, but full rate here.

Charles Babbage

This isn't an issue. Amazon are obliged by EU regulations to charge the appropriate VAT rate.
You are wasting our time and Amazon's.

Beasty

It's the law as required under EU rules

Carnmore

Charles Babbage wrote: »

You are wasting our time and Amazon's.

Does this apply to every question asked on boards.ie?

L1011

Amazon are not going to refund you - the price difference is tax based.

Carnmore

If the 3% extra VAT was to apply, the £68.90 would inflate to £70.97 rather than £72.53

L1011

Carnmore wrote: »

If the 3% extra VAT was to apply, the £68.90 would inflate to £70.97 rather than £72.53

Only if every item in your cart was 20% in the UK and 23% here. We do not have the same VAT bands on every item, as already explained.

irishgeo

Its an infaltion of 5.26%

The_Valeyard

Ship up North with parcel motel. Could they be cheaper than direct to Ireland? Inc delivery cost.

L1011

The_Valeyard wrote: »

Ship up North with parcel motel. Could they be cheaper than direct to Ireland? Inc delivery cost.

Free delivery on an order of that value to both countries; so you would need the difference to be dearer than the PM cost (plus Amazon are not as willing to give Irish return labels to people who had PM deliveries; so that is a potential issue too).

Carnmore

There's also a risk the Amazon parcel will be too big for either Parcel Motel or AddressPal

ytpe2r5bxkn0c1

Carnmore wrote: »

If the 3% extra VAT was to apply, the £68.90 would inflate to £70.97 rather than £72.53

Break that 68.90 down to each item type and postage and packaging because some will be 20% to 23% and others 5% to 13.5%.

Cabaal

Carnmore wrote: »

I am a regular Amazon purchaser. Each time I proceed to checkout the basket subtotal price inflates. I have notified Amazon and they are claiming it is due to the higher VAT rate in the Republic of Ireland.

I do not accept this as the applicable VAT rate is that of the country where the sale is transacted. The price inflation is also in excess of the 3% VAT differential between the UK and ROI.

My most recent order inflated from £68.90GBP to £72.53GBP at checkout. This issue occurs with each and every transaction. I am seeking a refund of the price differential for this and all previous transactions.

Has anyone had this issue with Amazon and resolved it?

You are clueless in relation to Vat and by demanding a refund of the vat amazon is required to pay by law you are asking Amazon to break the law. This makes you look seriously foolish.

I'd suggest sending an apology to Amazon for wasting their time, time they could have spent helping other customers at such a busy time of year.

dudara

Carnmore wrote: »

I am a regular Amazon purchaser. Each time I proceed to checkout the basket subtotal price inflates. I have notified Amazon and they are claiming it is due to the higher VAT rate in the Republic of Ireland.

I do not accept this as the applicable VAT rate is that of the country where the sale is transacted. The price inflation is also in excess of the 3% VAT differential between the UK and ROI.

VAT is more complex than that, and the rates charged can depend on a wide range of factors. A primary factor is where the customer is based, not where the sale is transacted. So on that basis, Amazon are correct to charge you Irish VAT.

Also, Ireland and the UK do not have the same VAT rates and application of rates to goods. So the price difference need not be a straight 3% increase.

Carnmore

Cabaal wrote: »

You are clueless in relation to Vat and by demanding a refund of the vat amazon is required to pay by law you are asking Amazon to break the law. This makes you look seriously foolish.

I'd suggest sending an apology to Amazon for wasting their time, time they could have spent helping other customers at such a busy time of year.

If the purchaser was made aware of this with a simple onscreen notification, your point would be valid.

As it is the price inexplicably inflates by a random amount not related to the 3% VAT differential.

Carnmore

River Bumpy Track-and-field wrote: »

Break that 68.90 down to each item type and postage and packaging because some will be 20% to 23% and others 5% to 13.5%.

My calculations are based upon 23% so if what you suggest was correct the increase would be 3% or less rather than 5% plus

L1011

Carnmore wrote: »

If the purchaser was made aware of this with a simple onscreen notification, your point would be valid.

As it is the price inexplicably inflates by a random amount not related to the 3% VAT differential.

There is no fixed 3% differential. This is why it is not a 3% increase. This has been explained to you repeatedly.

The entire increase is due to Irish VAT, and this is explained by Amazon.

Carnmore wrote: »

My calculations are based upon 23% so if what you suggest was correct the increase would be 3% or less rather than 5% plus

Your calculations are based on not knowing anything other than the two headline VAT rates. Srameen's suggestion would give you a figure of 3% or higher depending on what you are buying.

Dravokivich

Youve been advised already VAT varies by product type.

ytpe2r5bxkn0c1

Carnmore wrote: »

My calculations are based upon 23% so if what you suggest was correct the increase would be 3% or less rather than 5% plus

Oh lord! You have been told. It is not a simple 3% difference. For example, if you paid packaging and postage the difference on that portion would be 8.5%.

Again, I ask. Give an itemised breakdown of the charges and see what vat rates and rules apply yo each element.

It is NOT a simple 3% difference.

Beasty

Here's an example on something standard rated in both countries. I'll use the sterling prices as that's my own default

This item is listed at £34.99

That is £29.16 plus VAT at 20% of £5.83

If I change destination to Ireland it moves to £35.87, which is £29.16 plus VAT at 23% of £6.71

Now the actual gross price difference is not exactly 3% - it's £35.87/£34.99 -1 = 2.5%.

However the price being charged is entirely in accordance with EU VAT law and any other price would be considered discriminatory against residents of one or other of the countries involved

However as others have said repeatedly if you then factor in things like P&P different rates apply

JohnC.

Carnmore wrote: »

If the purchaser was made aware of this with a simple onscreen notification, your point would be valid.

You are shown the VAT being charged before you confirm the order.

May not apply to "One-Click" ordering, I don't use that.

coylemj

Beasty wrote: »

Now the actual gross price difference is not exactly 3% - it's £35.87/£34.99 -1 = 2.5%.

+1 The effective uplift on the Amazon sticker (UK VAT inclusive) price is 2.5% if all of the goods in your order are liable for the full rate.

In simple terms, if the pre-VAT price is 100, the Irish price will be 1.23 and the UK price will be 1.20. Divide 1.23 by 1.20 and you get 1.025 so the uplift is 2.5%.

The break-even UK price for doing it via Parcel Motel if all of the goods are at the high rate is roughly £150, above this it's cheaper to ship via PM as the saving in VAT will more than cover the PM charge. If they're charging to ship to ROI then the threshold will be lower.

Walter2016

wench wrote: »

Any business doing over €35K of sales into Ireland must register and pay VAT here, so Amazon are correct
http://www.revenue.ie/en/tax/vat/leaflets/distance-sales-eu.html

Some items will go up more than 3%, for example books are 0% in the UK, but full rate here.

Books are 0% here too.

Magazines and periodicals are 0% in UK and 9% here.

rubadub

Carnmore wrote: »

If the 3% extra VAT was to apply, the £68.90 would inflate to £70.97

no, you have simply added 3% on there.

If the item was 20% vat in the UK and 23% here and you had free shipping then it should rise to (£68.90/120)*123=£70.62

If you use PM the vat is going to the queen, the Irish government gets the 23% if applied.

Cabaal

Carnmore wrote: »

If the purchaser was made aware of this with a simple onscreen notification, your point would be valid.

As it is the price inexplicably inflates by a random amount not related to the 3% VAT differential.

Amazon display the applicable vat charged on the order at checked, they also list the vat rates in their help pages.

The fact you are going on about 3% shows you don't understand what you are on about. The difference between the UK and Ireland for some goods is far and above 3% in the difference.

Cabaal

Carnmore wrote: »

My calculations.......

Your calculations are deeply flawed, seriously stop wasting amazon's time and showing yourself up as utterly clueless about VAT.

Walter2016

Can the OP list the items purchased and price of each?

fryup

Walter2016 wrote: »

Books are 0% here too.

really well why are they so much more expensive then??

rubadub

http://www.revenue.ie/en/tax/vat/leaflets/printing-and-printed-matter.html

ED E

fryup wrote: »

really well why are they so much more expensive then??

Because we bend over and take it. Cost of business is higher here, but most of the premium we pay is just because we're bad about forking over more than we should.

Cabaal

Carnmore wrote: »

If the purchaser was made aware of this with a simple onscreen notification, your point would be valid.
.

Since I'm now on a computer and not a smartphone,

Amazon gives plenty of VAT info to clearly show that your belief that 3% is the difference you show pay is so very flawed. It can often be far more then 3%.

https://www.amazon.co.uk/gp/help/customer/display.html/ref=help_search_1-1?ie=UTF8&nodeId=201895820&qid=1482500420&sr=1-1

UK VAT Rates:
Standard VAT Rate: 20%
Other items vat rates vary from 0% or 5% https://www.amazon.co.uk/gp/help/customer/display.html?nodeId=201994400

Ireland:
Standard VAT Rate is: 23%
13.5% (Children's Car Seats)
0% (Books, Children's Apparel)

Thats not forgetting VAT on gift wrapping, delivery charges etc.

Walter2016

fryup wrote: »

really well why are they so much more expensive then??

I bought a few books last week and all worked out similar to stg price.

Books (and magazines) have a set pricing system. Exchange rate is fixed every 3 months.

On magazines a 12.5% distribution fee is applied plus 9% vat.

If you look through a range of books you'll see a range of exchange rates as they were bought at different times - remember last Dec the rate was 1.40+

Irish_Elect_Eng

Thanks All.

Learned something this evening.