Buying from Amazon - VAT Rate?

M

macplaxton

Registered User
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22
Hi,

My girlfriend decided to buy a digital camera from Amazon UK and it appears that the price is bumped up by the use of the Irish VAT rate of 21% rather than the UK 17.5%. Can someone explain this to me as I thought if you paid the VAT in one place, you'd be paying the going rate of VAT in the country of origin in the EU and not be VAT'd on country of residence. What's the scam here?

Cheers,

mac p
 
Yeah, that was my reading of it. I've bought stuff from Germany and paid the German VAT equivalent at 17% in the past. Hardly related to the Eurozone/ none Eurozone thing is it?
 
It depends. If the online vendor does more than a certain amount of business (€50K I think) in a particular country then they must charge the VAT rate of that country rather than the rate in the country of origin. That's my understanding anyway. That's why small operators might be able to charge the foreign (lower) rate of VAT while larger ones will have to charge the VAT rate of the destination country.
 
Cheers for replies,

That kinda makes sense Clubman. Although I still think it's a total swizz. I've bought plenty of DVDs from Jersey to UK, but each individual packet comes below the £18 allowance for Customs here. I've bought other stuff and paid the local VAT. Guess I'll do all the buying and re-posting from work! Or is there some other cheeky wee barrier to doing that?

ta,
mac p
 
macplaxton said:
I've bought plenty of DVDs from Jersey to UK
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Jersey is not in the EU which may be significant in this context.

but each individual packet comes below the £18 allowance for Customs here.
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There's a similar small value good exemption limit in Ireland on imports from other EU countries - I think it's €25.

Guess I'll do all the buying and re-posting from work!
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I don't understand what you mean here and how it helps you avoid VAT? Persumably you don't mean using your employer's VAT number to evade paying VAT which would be illegal and very foolhardy.
 
Yes, small goods exemption is:

£18 / €22 for commercial stuff.
£36 / €44 for gifts.

I mean by re-posting:

Is there any problem with me buying the goods in the UK, being subject to UK VAT and then sending them on to Ireland as a (albeit expensive) gift? (posting gratis from works postroom).

Cheers,

mac p
 
Is there any problem with me buying the goods in the UK, being subject to UK VAT and then sending them on to Ireland as a (albeit expensive) gift? (posting gratis from works postroom).
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Well, your boss could find out....it must be a large item with igh VAT to the trouble and delay..
 
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