** WHY OcUK VAT RATE TO IRELAND IS 23% !! **

Gibbo

Gibbo

Gibbo

OcUK Staff
Joined
17 Oct 2002
Posts
38,667
Location
OcUK HQ
Hi there


The customer who have raised this I have found out for you guys why we are charging you 23% VAT and not the regular UK 20% VAT.

Here is an explanation from our Finance Director:


Hi Andrew

I have copied the attached paragraph from the EU website on Taxation and Customs Union. The second paragraph clearly states that for sales to private individuals, VAT of the member state of destination has to be applied, once a certain threshold has been reached, which for Ireland is €35,000 per year.

Distance selling of goods
Distance selling means that a supplier sells goods to private individuals or customers established in another Member State who do not apply VAT to their intra-Community acquisitions of goods. The supplier takes care of the transport of the goods to the customers. A typical example is mail order companies.
VAT of the Member State of destination is applied if sales in that Member State exceed a certain threshold (EUR 100 000 or 35 000 or the equivalent in national currency). For the threshold applicable in each Member State , see the Commission's information document "VAT in the European Union" or Thresholds - Annex I (25 kB). Even if the threshold is not exceeded, traders can still opt to identify for VAT in the Member State of the consumer and charge the VAT applicable in that country.


Therefore if UK companies are charging UK VAT rates, either their annual turnover to Ireland must be below €35,000, or else they are in contravention of the EU VAT regulations, and they will have to pay VAT to the Irish Revenue at 23% for the periods when they should have been VAT registered in Ireland.

Regards



So in short it is because we have exceeded the set thresholds for shipments to Ireland and are following the law to the letter.

Hope this helps to explain this. :)
 
Always knew this, surprised someone questioned it :)

This is where ParcelMotel comes in extremely handy if its an expensive order, if only the free postage was to N.Ireland then a lot more people would use that as they save on postage and the 3% VAT :)
 
thats sucks was wondering why is this on ocuk vat changes for past few years , bit unfair for ocuk and customers but then again ocuk sells lots of stuff , how ever competitors don't have that i guess they sell less then 35k , bit unfair if you want to be ocuk loyal customer.
 
Hi there

The only thing I can think off is to suggest to our IT a 3% discount code for customers both living and shipping to Ireland to try and offset this.

I shall bring it up in next management meeting if you guys think a 3% discount code would be beneficial to apply against your basket.
 
Gibbo said:
Hi there

The only thing I can think off is to suggest to our IT a 3% discount code for customers both living and shipping to Ireland to try and offset this.

I shall bring it up in next management meeting if you guys think a 3% discount code would be beneficial to apply against your basket.
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that would be great if it is legal , then we can stop looking at competitors and stay loyal to ocuk + you get even more profit
 
psychas said:
that would be great if it is legal , then we can stop looking at competitors and stay loyal to ocuk + you get even more profit
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We shall look into it, shall take some time, also you have to remember the cost to us is higher to deal with Irish customers due to any returns etc. so cutting the already slim margins won't be easy.

Shall see what we can do. :)
 
thanks gibbo as always your the best hopefully it works out good for all of us.

Ps. i bought 2900xtx at full price , so you have to make it work :D hehehe
 
Gibbo said:
Hi there

The only thing I can think off is to suggest to our IT a 3% discount code for customers both living and shipping to Ireland to try and offset this.

I shall bring it up in next management meeting if you guys think a 3% discount code would be beneficial to apply against your basket.
Click to expand...

Could also use ParcelMotel some how?

If there was discounted shipping to Northern Ireland by a certain amount then we can get items posted to our Parcel Motel locker in Northern Ireland (paying only 20% VAT as its within UK). Item then gets delivered to our local ParcelMotel locker for €3.95.

I always use it to avail of free shipping from the UK as some places charge a bomb for Republic of Ireland shipping. Only costs me €3.95 then :)
 
Space Monkey said:
Simple solution, OCUK needs to open a branch in Ireland :D
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tbh that would be amazing for irelands economy , but i don't think they need the hassle , if we get the same price as uk customers and like person said above bit cheaper delivery ( i remember there was half price delivery to Ireland before for loyal members) they have a winner and much more customers.
 
Your discount code would need to be less than 3% to bring you in line with UK VAT, approx 2.439%.

Nice idea though and nice to see OCUK thinking of our Irish cousins for a change!

/Salsa
 
Gibbo said:
Hi there

The only thing I can think off is to suggest to our IT a 3% discount code for customers both living and shipping to Ireland to try and offset this.

I shall bring it up in next management meeting if you guys think a 3% discount code would be beneficial to apply against your basket.
Click to expand...

+1 Gibbo

rhysduck said:
Well clearly not everyone is clued up on the EU VAT Regulations like you :rolleyes: Sigh.
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haha

psychas said:
that would be great if it is legal , then we can stop looking at competitors and stay loyal to ocuk + you get even more profit
Click to expand...

;)

billysielu said:
** Deleted quote removed **
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** Be nice ** - DirtyJester
 
It's the same thing everywhere.. If I buy anything from OCUK, i have to pay 25% tax, then add 20 quid for shipping.. You get the picture.. :( the same thing applies if i buy from Caseking. It's a bummer :(
 
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