EU VAT

Dadooq

I sent some books to family in Denmark for Christmas, and didn’t use Amazon - in order to support a non-Amazon retailer. I was charged VAT @ 25% at checkout. The books eventually arrived - one very recently. My query is this;

1. I thought that VAT into the EU was only applicable to items costing less than €22.00. As the total order was more than this limit should VAT have been applied if the books had been sent as a single parcel (they weren’t but could have been - see next point)?

2. At least one of the books appears to have been sent from Belgium. Would VAT have been applicable in this case and if not, am I not due a refund?

3. If points 1&2 are correct, does the failure to send the books as one parcel, thereby making VAT chargeable to me, and facilitating the avoidance of VAT by the retailer by sourcing the individual books from within the EU, make the process a little shady?

Would appreciate some clarity from any experts reading this. 

Phantom151

This gets a bit complicated. Where is the supplier based? If UK based then the supplier will  pay the VAT up to a goods value of £135. Over that then the recipient is liable for their local VAT. If EU based then you will pay local VAT on any amount.

bris

I assume you used a Danish retailer as the VAT rate there is 25% so you just paid local VAT.

Technically you arent really exporting if the seller was in Denmark going to a Danish address.

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Sandtree

1) Where is the retailer you used based? Assuming its in Denmark like your family then they are just charging local sales tax which happens to be 25%. The location of the buyer is irrelevant, just the location of the seller and the delivery address

2) That would be an EU to EU sale and so yes VAT would be payable in one member state and given you ordered it from a Danish company it would be their 25%

3) There is no minimum sales for VAT within the EU

Dadooq

I used Wordery which I believe is a Uk company and I am in the uk. I understand that Vat has to be paid. I’m trying to figure out why they sourced some of the books from Belgium and if that made any difference to their vat burden. 

Phantom151

Dadooq said:

I used Wordery which I believe is a Uk company and I am in the uk. I understand that Vat has to be paid. I’m trying to figure out why they sourced some of the books from Belgium and if that made any difference to their vat burden. 

You'd be on the hook for VAT regardless of where they were sourced. I suspect they looked at the delivery address and sourced from the EU to save the recipient import duties and carrier charges. On balance, you got a good deal.

Keep_pedalling

The UK vat rate on books is 0%, Denmark charges 25%.

mattyprice4004

Dadooq said:

I used Wordery which I believe is a Uk company and I am in the uk. I understand that Vat has to be paid. I’m trying to figure out why they sourced some of the books from Belgium and if that made any difference to their vat burden. 

If they’re a UK company it doesn’t matter where they sourced the books - it’s where the company is based that makes the difference (usually, anyway). 

So it’s of little to no difference. 

Thrugelmir

Dadooq said:

I used Wordery which I believe is a Uk company and I am in the uk. I understand that Vat has to be paid. I’m trying to figure out why they sourced some of the books from Belgium and if that made any difference to their vat burden. 

It's part of a global organisation with a number of brands. Why ship from the UK if there's stock in their European distribution centre. 

Sandtree

Dadooq said:

I used Wordery which I believe is a Uk company and I am in the uk. I understand that Vat has to be paid. I’m trying to figure out why they sourced some of the books from Belgium and if that made any difference to their vat burden. 

Traditionally the importer pays the taxes so if you thought you were buying from the UK and sending to Demark then the recipient of your gift would be the one that is stung with the 25% VAT bill... as its being sent by a commercial entity there is no gift allowance.

Some merchants however charge a fully landed cost and so the buyer pays the taxes up front... often buyer and recipient is the same person and paying taxes up front gives certainty of the full cost and avoids the ~£12 the courier charges for clearing customs for you.

Additionally some countries are also requiring the merchant to collect the VAT from the buyer now even if the merchant is in a different country... UK introduced this with Brexit and removed the floor for VAT, France has something similar but a minimum annual volume for the merchant. No idea about Denmark but its possible.

Sending the books within the EU wont have increased the taxes due.