VAT on Purchase from UK

mbarosin

I purchased an item from a UK retailer with UK VAT included.

I have now been charged c. €275 for customs and Irish VAT, with VAT making up the bulk of that amount.

My question is whether I am entitled to claim back the UK VAT that I was charged and if so what is the best approach to do this?

I searched the site but couldn't find an answer.

mbarosin

Bump... Anyone?

Should we be charged both UK VAT and Irish VAT?

Allinall

Are you VAT registered here?

If not, then you are subject to the double VAT charge.

Steve

"I've made a point of contacting businesses before hand to have the VAT removed and billed correctly at point of sale."

This.

Who knows what their post Brexit rules are. They can charge what they like. I don't buy from the UK any more. I'm VAT and VIES registered and have no issues with EU suppliers zero rating VAT on purchases.

Citrus_8

https://www.boards.ie/discussion/comment/117705539#Comment_117705539

If UK business (seller) isn't registered in Ireland for VAT purposes, they should charge a customer VAT in the country where business is registered, if there's no other agreement between both parties. VAT double charge happened due to VAT paid in a country where purchase is made, plus Irish VAT in this case is import VAT (based on the classifier, lots of items are due for import VAT when items are imported from the Third country if there is no special agreement between the countries). It's makes a total sense that a resident in Ireland is being asked to pay an import VAT for the Irish government when a product is not from the same market. And makes sense that UK charge their local VAT because it's a consumers tax and it should stay paid in the market in which a transaction is made. Previously the UK was a part of the EU market, but no longer. This is why a double charge appears. But it isn't applicable to all items - there are exceptions. At certain times seller may agree to make a discount and pay an import tax for the customer etc etc, but this is not a default practice as VAT is a consumers tax.

Citrus_8

https://www.boards.ie/discussion/comment/117708004#Comment_117708004

Oh dear, we are talking about the import into Ireland not export (from Ireland) and you're giving to me a link about the export. When you buy in the UK, that's an export from the UK's perspective, but you're in Ireland, so the item ends up imported, and OP raised a question about the Irish Customs Irish VAT, which is an import, not an export tax! When the UK left the EU, you have to pay tax in both Customs Unions (double taxation is applicable, if no other special agreement between the countries is in place). Previously double taxation was avoided as both countries were in the same Customs Union.

Export tax gets paid to the British seller as British VAT, but Import tax also needs to be paid (and it can be not just import VAT but also additional customs duties and fees, depending on the item class on the Classification of imported goods).

https://ec.europa.eu/taxation_customs/business/calculation-customs-duties/customs-tariff/classification-goods_en

https://ec.europa.eu/eurostat/web/international-trade-in-goods/methodology/classifications

https://www.revenue.ie/en/customs-traders-and-agents/importing-and-exporting/classification/index.aspx

https://www.prepareforbrexit.com/insights/customs-classification-commodity-codes/

Today (30/6/2021), Ms Maureen Dalton, Principal Officer in Revenue’s Customs Division, confirmed that, from tomorrow, all goods arriving into Ireland from non-EU countries, regardless of their value, will be subject to VAT:

“Consumers need to be aware that as of midnight tonight the current VAT exemption for imported goods with a value of €22 or less will end. This means that goods purchased from a non-EU country that arrive into Ireland for delivery any time after midnight tonight will be subject to VAT, regardless of their value and regardless of when they were purchased. The applicable VAT rate to these goods will be the relevant rate that would apply if the goods were purchased in Ireland.”

https://www.revenue.ie/en/corporate/press-office/press-releases/2021/pr-063021-new-vat-rules-for-goods-bought-from-non-eu-countries.aspx

https://www.revenue.ie/en/vat/goods-and-services-to-and-from-abroad/imports/when-is-vat-payable-on-importation.aspx

https://www.revenue.ie/en/customs-traders-and-agents/brexit/information-for-businesses/vat-implications-of-trade-with-the-uk/index.aspx

Citrus_8

https://www.boards.ie/discussion/comment/117708138#Comment_117708138

Thanks for adding and apologies now for confusing myself and you. I'm now doubting myself and thinking you are most likely right, but I'm still confused. I know for the fact that, especially online, British retailers have indeed charged some customers with their 20% VAT and later got hit by the Irish VAT too. Apparently, some UK businesses still don't understand that and you actually end up paying VAT twice.

You're correct saying that UK VAT should not be applicable (again, based on your initial export logic as the item will be used in the destination country, not the country where it's purchased and VAT is a consumers' tax meaning it's applied in the country where it will be delivered (=consumed)). Again, there are exceptions, example, fuel is consumable and if not proven that it hasn't been consumed in transit, then Irish VAT wouldn't be applied, but this would probably be a different story(?)

If UK business is registered in Ireland for Irish VAT - then Irish VAT is applied during the transaction. If UK business isn't registered, according to your links, and thinking logically, then VAT should be zero but due on the board to the authorities (usually to tax office through customs or courier) in the destination country.

Unfortunately, some UK businesses still didn't amend their websites that it would recognise a delivery address and apply a proper VAT based on the destination (before Brexit UK VAT was ok). This is how I got confused and merely believed.

MrVestek

I have contacted businesses over the past few months that I've ordered stuff from in the UK and charged UK VAT.

I've pointed it out to them numerous times that they shouldn't be doing this as I'll get charged Irish VAT at customs and in every instance I've had the VAT costs refunded to the card I purchased from.

A lot of businesses over there still don't appear to understand the post Brexit rules... so you need to give them a little nudge.