VAT on Printed Books

danm14

I recently purchased an expensive book from Amazon. They charged me 23% VAT on the order, despite the correct rate for printed books in both Ireland and the UK being 0%. It's a paper book, and it doesn't include anything else like a CD, so it's definitely not subject to VAT. It appears to be a mistake on their system, as the same book shipped to the UK is being subjected to 8% VAT, which is not even a valid VAT rate in the UK.

They are refusing to refund me, claiming that it was correctly charged and that they were legally obliged to levy it. Assuming they continue to refuse, is there any way I can claim the wrongly charged VAT back through the Revenue Commissioners, or would I need to pursue it legally (which would cost more than the VAT refund)?

Rulmeq

What kind of book was it? There are different VAT rates that apply to printed materials (Newspapers/magazines, etc are chargeable, books usually aren't, but not necessarily so - an album for example would be 23%)

https://www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Goods/goods-printed-matter.pdf

tanit

danm14 wrote: »

I recently purchased an expensive book from Amazon. They charged me 23% VAT on the order, despite the correct rate for printed books in both Ireland and the UK being 0%. It's a paper book, and it doesn't include anything else like a CD, so it's definitely not subject to VAT. It appears to be a mistake on their system, as the same book shipped to the UK is being subjected to 8% VAT, which is not even a valid VAT rate in the UK.

They are refusing to refund me, claiming that it was correctly charged and that they were legally obliged to levy it. Assuming they continue to refuse, is there any way I can claim the wrongly charged VAT back through the Revenue Commissioners, or would I need to pursue it legally (which would cost more than the VAT refund)?

For someone to charge you VAT @23% they need to be registered in Ireland and for Revenue to be able to do anything they need to be under Revenue jurisdiction. Check the invoice and the Vat registration number (the first 2 letters would be the country code) and enter it in this website: VIES VAT validation number. It will tell you if the Vat registration is valid and in which country.

The 8% vat rate is not a valid UK Vat rate but it is a valid Vat rate in Poland and Luxembourg. And in Poland the standard rate is 23% like in Ireland. You need to know where the company is registered for Vat purposes. If for instance they are only registered in Poland they are obliged to charge Vat at Polish rates and the rules for books might be different than the ones in Ireland.

If the company is registered for Vat purposes in Ireland, then you can contact Revenue and they will do something but I don't know if you will get the money back

danm14

Rulmeq wrote: »

What kind of book was it? There are different VAT rates that apply to printed materials (Newspapers/magazines, etc are chargeable, books usually aren't, but not necessarily so - an album for example would be 23%)

https://www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Goods/goods-printed-matter.pdf

It's a specialist textbook. As per that document, it consists essentially of textual matter, has a distinctive cover, comprises more than four leaves, and is bound. Therefore I can't see any reason why it'd be subject to VAT. Unless perhaps there's an exception that textbooks or books on specialist subjects are subject to VAT?

tanit wrote: »

For someone to charge you VAT @23% they need to be registered in Ireland and for Revenue to be able to do anything they need to be under Revenue jurisdiction. Check the invoice and the Vat registration number (the first 2 letters would be the country code) and enter it in this website: VIES VAT validation number. It will tell you if the Vat registration is valid and in which country.

The 8% vat rate is not a valid UK Vat rate but it is a valid Vat rate in Poland and Luxembourg. And in Poland the standard rate is 23% like in Ireland. You need to know where the company is registered for Vat purposes. If for instance they are only registered in Poland they are obliged to charge Vat at Polish rates and the rules for books might be different than the ones in Ireland.

If the company is registered for Vat purposes in Ireland, then you can contact Revenue and they will do something but I don't know if you will get the money back

Amazon are registered for VAT in Ireland and have an Irish VAT number

-

In any case, they've agreed to refund the VAT. But only a small portion of it (less than half). They refuse to refund the VAT on the portion I paid with the balance of my Amazon account.

tanit

danm14 wrote: »

It's a specialist textbook. As per that document, it consists essentially of textual matter, has a distinctive cover, comprises more than four leaves, and is bound. Therefore I can't see any reason why it'd be subject to VAT. Unless perhaps there's an exception that textbooks or books on specialist subjects are subject to VAT?



Amazon are registered for VAT in Ireland and have an Irish VAT number

-

In any case, they've agreed to refund the VAT. But only a small portion of it (less than half). They refuse to refund the VAT on the portion I paid with the balance of my Amazon account.

Have you bought it from Amazon or from an Amazon seller? Because this may be the first time I see Amazon doing that kind of mistake. I'm not saying is not possible, but it is going to be a first.

Amazon should be registered for Vat in Ireland but someone selling in Amazon will depend on whether they go over the threshold for distance selling in Ireland. I have bought from both Amazon and sellers in Amazon and I get charged different Vat rates depending on who is selling to me.

danm14

tanit wrote: »

Have you bought it from Amazon or from an Amazon seller? Because this may be the first time I see Amazon doing that kind of mistake. I'm not saying is not possible, but it is going to be a first.

Amazon should be registered for Vat in Ireland but someone selling in Amazon will depend on whether they go over the threshold for distance selling in Ireland. I have bought from both Amazon and sellers in Amazon and I get charged different Vat rates depending on who is selling to me.

Definitely from Amazon themselves. Not a private seller, nor a seller fulfilled by Amazon.

tanit

danm14 wrote: »

Definitely from Amazon themselves. Not a private seller, nor a seller fulfilled by Amazon.

If it's directly Amazon and you have the invoice you can tell Revenue, they may want to check what is going on as you may not be the only one having issues with Vat charged incorrectly. And to be honest they get very touchy with the issue of Vat being incorrectly charged, them not getting their taxes.

I would try with them again mentioning the legislation for Vat in Ireland how it applies to books.

That's the only thing it occurs, alternatively a small courts claim but I am not familiar with how it works. Maybe Consumer Association, someone here might have other ideas

danm14

tanit wrote: »

If it's directly Amazon and you have the invoice you can tell Revenue, they may want to check what is going on as you may not be the only one having issues with Vat charged incorrectly. And to be honest they get very touchy with the issue of Vat being incorrectly charged, them not getting their taxes.

I would try with them again mentioning the legislation for Vat in Ireland how it applies to books.

That's the only thing it occurs, alternatively a small courts claim but I am not familiar with how it works. Maybe Consumer Association, someone here might have other ideas

After contacting them a fourth time, they've refunded me the wrongly charged VAT, as well a sizeable credit as a gesture of goodwill.

It appears that the issue may have been that the book I ordered wasn't actually listed in the "Books" category on the site (despite it being a book), as all books in the same category are wrongly subjected to VAT, but books in other categories are fine. They claim to be going to fix it (but I won't hold my breath).

Thanks for yours and Rulmeq's help