VAT on online purchases?

F

Fingalian

Registered User
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I buy a fair bit of software online and I have never been charged VAT. Today I bought a small application for $29.00 and I was charged $6.98 VAT. The company is based in Minnesota and their online form even asked me if I had an Irish VAT number. How does this work ? do they forward on the money to the Irish Revenue? Thanks.
 
I'm not an expert here, but I think you'll need to clarify a couple of points. Was it a personal or business purchase? Did you quote your Irish VAT number (if you have one)?
 
It was a personal purchase, but there was a pop up box that said ' if you are registered for VAT enter the details here: IE.......................

I do not have a VAT number. Thanks.
 
Are you sure that you were charged VAT or was it, in fact, US sales tax? In general all online purchases are liable for Irish/EU VAT and possibly also import duties even if people sometimes get away without paying these.
 
Yes it was VAT. I know that all online purchases are liable for Irish/EU Vat, that is fair enough though it rarely happens. I just put through a dummy order a few minutes ago and the pop up box said;-

'Your order requires VAT in the amount of $12.59.This will be added to your total order.If you are making this purchase for a VAT registered business, you can remove the VAT from your order by providing your VAT number below.
Company Name:
VAT Number: IE

Strange eh? I think I will contact the company in question and ask them why are they collectingI rish VAT in America and how do they remit it to the Irish Revenue.What do you think? Thanks.
 
Who are the company in question? Perhaps the company has an EU presence and is bound by the usual tax rules as they apply to online purhcases?
 
The company that makes the software is called VeryPDF.....pdf editors etc. The company handling the payment process is this crowd:-

[broken link removed]
 
I can't remember the details, but it has been discussed here before.

Basically, the story is that they *are* collecting VAT for the Revenue, based on some EU/US agreement.

As I say I can't remember the exact story, but in theory all online software sales into the EU (or Ireland at least) are liable to VAT.

z
 
They may have an EU distribution post of some sort. When you purchase from Vistaprint in the US, their goods come from Sweden.
 
I've bought three software packages online for personal use and have always paid 21%VAT. Once it's priced in Euros and Ireland identified as the purchaser's domicile, it's automatically charged. In one case it was indicated that billing was via Element which is EU based. Another purchase was directly from Aluria Sofware in Florida. They also charged VAT @ 21%. It would be interesting to know the mechanism whereby the VAT charged is remitted to Revenue here - or is it?

I know that all online purchases are liable for Irish/EU Vat, ....though it rarely happens.
Click to expand...

I'd love to know how that can be since in my experience that it has always been added on.
 
What was the denouement to your original query? Did you follow it up with the US company in question? Were the VAT charges explained by them having an EU presence/distribution centre?
 
Clubman, I have emailed the companies in question but I have not had a reply yet. Soon as I hear something I'll add it to this thread.
 
Thanks. For what it's worth tonka has posted a useful Revenue link in [broken link removed] that might be of interest to you.
 
Here is the reply I received:-


Thanks for your message. All customers located within the EU are required to pay VAT. We remit directly to the EU Tax Authority.
Thanks.

 
EU TAX Authority.?????? Wassa ??

I never ask for invoices in € and rarely pay VAT in US
 
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