Store in the UK charging me UK VAT.

JamieOS

I've purchased a guitar from a store I've previously done business with in the UK. I made the order over the phone and they have charged me the 20% UK VAT saying that I am supposed to claim in back from customs on my end when I am charged the 23% Irish VAT. Surely the UK VAT is supposed to be deducted by them if they are shipping it from the UK to Ireland? I'm having trouble finding relevant information online about it that I can refer them to, as they don't seem to know whats going on for sure.

gary550

JamieOS wrote: »

I've purchased a guitar from a store I've previously done business with in the UK. I made the order over the phone and they have charged me the 20% UK VAT saying that I am supposed to claim in back from customs on my end when I am charged the 23% Irish VAT. Surely the UK VAT is supposed to be deducted by them if they are shipping it from the UK to Ireland? I'm having trouble finding relevant information online about it that I can refer them to, as they don't seem to know whats going on for sure.

They should not be charging UK VAT as it is classed as an export to be consumed outside the UK. You will of course have to pay Irish VAT at point of import.

Press them for the 20% they charged you to be refunded.

There is an article on the UK government's site which explains it all https://www.gov.uk/guidance/vat-on-goods-exported-from-the-uk-notice-703

whiterebel

They don't have to remove the VAT for exports, its their decision.

JamieOS

whiterebel wrote: »

They don't have to remove the VAT for exports, its their decision.

So I can just be charged VAT twice?

reni10

JamieOS wrote: »

So I can just be charged VAT twice?

You have to pay Irish VAT on it and it is up to the UK company to remove the UK VAT so if they do not then yes you pay VAT twice.

My advice would be if the UK company will not remove the UK VAT then shop elsewhere!

reni10

reni10 wrote: »

You have to pay Irish VAT on it and it is up to the UK company to remove the UK VAT so if they do not then yes you pay VAT twice.

My advice would be if the UK company will not remove the UK VAT then shop elsewhere!

No, you're wrong. If charged UK VAT, then you can reclaim it from HMRC but the seller is under no obligation to sell to you VAT free.

reni10

Jeremy Beagle wrote: »

No, you're wrong. If charged UK VAT, then you can reclaim it from HMRC but the seller is under no obligation to sell to you VAT free.

How can someone in Ireland reclaim the UK VAT from Ireland if they are not an Irish registered business?

Darc19

reni10 wrote: »

How can someone in Ireland reclaim the UK VAT from Ireland?

You can, but it's a laborious process and only worth it if it's in the thousands.

Small UK companies simply can't be arsed with the extra paperwork - they will have to export it themselves, provide various documents and account for it separately.

Same here, small Irish companies can't be arsed selling into the UK. The paperwork simply is not worth it.

reni10

Darc19 wrote: »

You can, but it's a laborious process and only worth it if it's in the thousands.

Small UK companies simply can't be arsed with the extra paperwork - they will have to export it themselves, provide various documents and account for it separately.

Same here, small Irish companies can't be arsed selling into the UK. The paperwork simply is not worth it.

Is there a link with the details for how a consumer and not a business in Ireland can do the UK VAT reclaim from HMRC from Ireland?

antoinolachtnai

reni10 wrote: »

Is there a link with the details for how a consumer and not a business in Ireland can do the UK VAT reclaim from HMRC from Ireland?

The precedent in this complicated court case points towards you not having any right to recover VAT from HMRC.

https://www.simmons-simmons.com/en/publications/ck0azjncunsqr0b367n7qptgt/06-recovery-of-overpaid-vat-from-hmrc-by-investment-trust-customers

HMRC are not generally in the business of paying out money to people they don’t know. There is no good reason in their eyes why you can’t recover this overpayment from the supplier (whose customer tou are and whose job it is to administer the export arrangements, not HMRC’s), so I don’t think they will entertain a claim.

You could and should ring them and find out definitively for yourself of course. It may be hard to get a straight answer though.

If you haven’t already bought this, the best thing is to find another supplier who will zero-rate the supply for you, or better still, sort out the Irish VAT.

reni10

antoinolachtnai wrote: »

The precedent in this complicated court case points towards you not having any right to recover VAT from HMRC.

https://www.simmons-simmons.com/en/publications/ck0azjncunsqr0b367n7qptgt/06-recovery-of-overpaid-vat-from-hmrc-by-investment-trust-customers

HMRC are not generally in the business of paying out money to people they don’t know. There is no good reason in their eyes why you can’t recover this overpayment from the supplier (whose customer tou are and whose job it is to administer the export arrangements, not HMRC’s), so I don’t think they will entertain a claim.

This is exactly my understanding too!

There is no actual way as a consumer in Ireland to claim back UK VAT while you are located in Ireland!

That is why my original statement was to either get the supplier to remove the UK VAT or don't do business with them!

JamieOS

Looks like they've gone ahead and shipped the guitar despite me sending them an email to hold off until I get this figured out so I guess I'll just wait and see if it gets hit with customs or not. If not, I'll keep it, if it does, they are going to take it back as a return.

Timing belt

JamieOS wrote: »

Looks like they've gone ahead and shipped the guitar despite me sending them an email to hold off until I get this figured out so I guess I'll just wait and see if it gets hit with customs or not. If not, I'll keep it, if it does, they are going to take it back as a return.

If the guitar is not manufactured in the U.K. you may end up paying a tariff plus vat.

You can claim back the vat from HMRC as long as you have proof that the goods were for export. Normally this is done in the airport or ferry port when leaving the UK. Up to now you could only do it when you lived outside EU but now the U.K. are out Irish people can avail of it. If something is shipped and paper work not there you may not be able to claim it.

whiterebel

Check their T&Cs carefully to make sure you can.

reni10

Timing belt wrote: »

You can claim back the vat from HMRC as long as you have proof that the goods were for export. Normally this is done in the airport or ferry port when leaving the UK.

There is no way that I have seen to claim the UK VAT back if you are a consumer and located in Ireland and receive the item through the mail as you won't have access to the airport or ferry port to deal with HMRC so will end up paying the UK VAT and then on entry the Irish VAT and will be unable to reclaim either!

antoinolachtnai

reni10 wrote: »

There is no way that I have seen to claim the UK VAT back if you are a consumer and located in Ireland and receive the item through the mail as you won't have access to the airport or ferry port to deal with HMRC so will end up paying the UK VAT and then on entry the Irish VAT and will be unable to reclaim either!

As I understand it, there is no longer a facility to get a refund on GB VAT at the GB/UK border.

https://www.gov.uk/guidance/claim-vat-back-on-tax-free-shopping-in-the-uk-notice-7041