german company charging Irish vat rate

lensman

Hi,
http://www.thomann.de/ie/index.html are a well known online music instrument store, their way of charging VAT is based on the VAT rate in the desination (EU) country which is 21.5% for irish orders, my question is are they within the law to do this ??

the_syco

lensman wrote: »

Hi,
http://www.thomann.de/ie/index.html are a well known online music instrument store, their way of charging VAT is based on the VAT rate in the desination (EU) country which is 21.5% for irish orders, my question is are they within the law to do this ??

They are required by law to do this.

JohnC.

That is what they are supposed to do.

lensman

Kahless wrote: »

That is what they are supposed to do.

When did the law change ??,. I think you misunderstand me here, I have ordered goods from many parts of the EU for many years & I paid the applicable VAT rate in the (EU) country of origin which was or is the law, has this changed ? example..german vat is 19%, Irish vat is 21.5, ..I order my goods from germany but get charged the Irish vat rate,..where does the extra 2.5% vat go ??

dudara

What you want to know about is intra community VAT.

If you physically went and bought the goods in another EU country, then you would be charged the applicable VAT rate in that country.

However, it's my understanding that when you buy goods from another country, but you are based in Ireland, and are not-VAT registered, then you pay VAT at the Irish rate.

The VAT due on the transaction is payable on acquisition of the goods by the taxable customer in the Member State where the goods arrive

Source

mdebets

It all depends on the amount of business they are doing with Ireland.
Once a company from an EU country hits a certain amount of business with another EU country, it has to register its VAT with the destination country.

Sponge Bob

Think you need to register for and charge Irish Vat to the Irish once you hit €20k turnover in a year .

parsi

lensman wrote: »

When did the law change ??,. I think you misunderstand me here, I have ordered goods from many parts of the EU for many years & I paid the applicable VAT rate in the (EU) country of origin which was or is the law, has this changed ? example..german vat is 19%, Irish vat is 21.5, ..I order my goods from germany but get charged the Irish vat rate,..where does the extra 2.5% vat go ??

That reg has been around for years.

Approximately 3-4 years ago amazon.de hit their Irish threshold which meant that books became cheaper.

A lot of the smaller German retailers wouldn't have reached any threshold yet as they often seem to almost doscourage non-German sales with pages of densely packed AGB, refusal to use credit cards etc.

ejmaztec

This is a list of all the various thresholds for EU countries.



http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_EC_annexI.pdf

Gamesnash.ie: Pat

lensman wrote: »

When did the law change ??,. I think you misunderstand me here, I have ordered goods from many parts of the EU for many years & I paid the applicable VAT rate in the (EU) country of origin which was or is the law, has this changed ? example..german vat is 19%, Irish vat is 21.5, ..I order my goods from germany but get charged the Irish vat rate,..where does the extra 2.5% vat go ??

The extra 2.5% and the 19% before it are legally destined for the Irish goverment.