# VAT on online purchases?



## Fingalian (13 May 2005)

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.


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## RainyDay (13 May 2005)

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)?


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## Fingalian (13 May 2005)

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.


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## ClubMan (13 May 2005)

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.


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## Fingalian (13 May 2005)

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.


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## ClubMan (13 May 2005)

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?


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## Fingalian (13 May 2005)

The company that makes the software is called VeryPDF.....pdf editors etc. The company handling the payment process is this crowd:-

[broken link removed]


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## zag (13 May 2005)

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


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## Fingalian (13 May 2005)

hmm thanks for the info, think I'll dig a little deeper into this.


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## Unregistered (13 May 2005)

They may have an EU distribution post of some sort. When you purchase from Vistaprint in the US, their goods come from Sweden.


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## sherib (14 May 2005)

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.


 
I'd love to know how that can be since in my experience that it has _always_ been added on.


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## Furze (14 May 2005)

FAQs on topic [broken link removed]

or Irish specific

[broken link removed]


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## Fingalian (16 May 2005)

Thanks for all the info folks.


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## ClubMan (16 May 2005)

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?


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## Fingalian (16 May 2005)

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.


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## ClubMan (16 May 2005)

Thanks. For what it's worth _tonka _has posted a useful _Revenue _link in [broken link removed] that might be of interest to you.


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## Fingalian (17 May 2005)

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.


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## tonka (17 May 2005)

EU TAX Authority.?????? Wassa ??

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


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