Amazon price inflation on checkout

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Carnmore

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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?
 
I've never noticed this, but I buy using my Parcel Motel or my An Post UK addresses. I then pay Parcel Motel or An Post €3.50 for their fee upon delivery to their collection point here.

In the example you quote the difference -20% + 23% should be £1.72. Puzzling.
 
The applicable VAT rate for an Amazon.co.uk delivery with a delivery address in the Republic of Ireland is that of the Republic, not the UK:


In fact the VAT you pay goes to the Irish government not the UK.
If you use a Parcel Motel \ Address Pal type third party with a UK delivery address, you will pay UK VAT and it will go to the UK government.

So the question is whether the Irish VAT rate has been applied correctly as per:
The Recommended Retail Price (RRP) and/or price displayed for goods sold by Amazon are inclusive of UK VAT. However, your final price may differ depending on the actual VAT rate that applies to your order. For orders to other EU countries, the UK VAT amount will be deducted from the price and the applicable VAT rate for the destination country will be added. Your final price during checkout will reflect the correct VAT rate for the destination country of your order.
 
Not just VAT (which is exactly as odyssey06 describes) changes, but usually the porto&packaging changes as well potentially at that point.

There's absolutely no case to be made against Amazon. They are very much correct on how they apply the VAT rules.
 
The amount of recent Amazon bashing on this site lately is unreal. It is also mainly from people who simply cannot read what is in front of them; be it terms and conditions or the FAQ's. Yes Amazon has a poor reputation when it comes to paying its taxes but as far as customer service goes, it is pretty much exemplary. I consistently read comments where they have gone above and beyond what many other companies of their size would do to remedy customer issues.

This case of different prices when an Irish address is selected is very basic at this stage. I would suggest that if the OP got out his calculator and worked out the final price applying the Irish VAT rate, the Amazon price will be correct to the penny. Interestingly I see that the OP also posted his rant on Boards and was told in (naturally) more frank terms that he hadn't a clue of what he was ranting about!!

The main thing to ensure when buying on the UK Amazon site is to ALWAYS pay in sterling.
 
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tallpaul said:
The amount of recent Amazon bashing on this site lately is unreal.
Click to expand...

It's the next evolution in popularism! If I hear it or think it, that trumps facts!

It's like another example I can a cross of a customer demand a refund from Lufthansa on a no refundable ticket... her position since she cancelled the day before the flight it must count for something! After about 10 posts she went off in a huff with the statement - people on this forum are too stupid to understand! :eek:
 
tallpaul said:
The amount of recent Amazon bashing on this site lately is unreal. It is also mainly from people who simply cannot read what is in front of them; be it terms and conditions or the FAQ's.
Click to expand...

The inflated price is inexplicable - a simple onscreen notification would not be difficult to provide


tallpaul said:
Yes Amazon has a poor reputation when it comes to paying its taxes but as far as customer service goes, it is pretty much exemplary. I consistently read comments where they have gone above and beyond what many other companies of their size would do to remedy customer issues.
Click to expand...

Who said anything about their customer service?

tallpaul said:
I would suggest that if the OP got out his calculator and worked out the final price applying the Irish VAT rate, the Amazon price will be correct to the penny
Click to expand...

The figures are provided for you to have done this; 68.90 / 1.20 = 57.42 x 1.23 = £70.62.

The amount charged was £72.53

tallpaul said:
Interestingly I see that the OP also posted his rant on Boards and was told in (naturally) more frank terms that he hadn't a clue of what he was ranting about!!
Click to expand...

Speaking of not having a clue, who posted a rant?

tallpaul said:
The main thing to ensure when buying on the UK Amazon site is to ALWAYS pay in sterling
Click to expand...

GBP means sterling
 
I cannot explain the price differences. Even if Amazon used the (very) old UK VAT rate of 17.5% in their calculation, it doesn't explain the difference.

If their UK calculations are correct, 20% VAT rate, that means the VAT-free price is £57.42, adding 23% to this price should give £70.63 as the "23% VAT inclusive shipped to an Irish address" price. Shipping is always charged on a different line by Amazon.

So either

Amazon's sums are wrong - shock horror, the world might end!
They have a different RRP for goods sold to Ireland
Some goods are VAT exempt in the UK but not in Ireland (??)
Some other reason.

In the EU Amazon must provide an invoice which shows pre and post VAT pricing. What does it show? @Carnmore
 
mathepac said:
I cannot explain the price differences. Even if Amazon used the (very) old UK VAT rate of 17.5% in their calculation, it doesn't explain the difference.

If their UK calculations are correct, 20% VAT rate, that means the VAT-free price is £57.42, adding 23% to this price should give £70.63 as the "23% VAT inclusive shipped to an Irish address" price. Shipping is always charged on a different line by Amazon.

So either

Amazon's sums are wrong - shock horror, the world might end!
They have a different RRP for goods sold to Ireland
Some goods are VAT exempt in the UK but not in Ireland (??)
Some other reason.

In the EU Amazon must provide an invoice which shows pre and post VAT pricing. What does it show? @Carnmore
Click to expand...

Not all items have the same VAT rate, and so your example calculation on its own does not explain anything.
There are no RRP differences, any difference I have encountered so far are solely due to VAT or P&P.

Given I haven't ordered everything possible, there is of course a risk however small.
 
To "demand" a refund is just ridiculous and will be seen as such by Amazon.

Its best to understand an issue fully and have verifiable facts before "demanding" something from someone.

You do understand that the UK has a different vat rate to Ireland and different items have different rates?

To "demand" a refund you need to find out the vat rate in uk for each item you bought and vat rate in Ireland for each item.

In Ireland you have 0%, 9%, 13.5% & 23% rates. In uk you have 0% 5% and 20%.

If your purchase included a comic book, the rate of that item is 0% uk and 9% Ireland.

So best to understand the difference than to "demand" a refund that is not due.
 
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