I was trying to order some stuff from Amazon over the weekend, encountered some price discrepencies and thought I'd share them here.
Find a book(s), check the price deposit it into basket -Proceed to pay. VAT indicated as 0 regardles of the quantity of books. No problem
Find a DVD, check the price, deposit it in basket, proceed to pay. Find the listed price of the DVD has gone up 5 to 6%. In addition to that there is now Vat being added to the transaction
Having tried this a few times I gave up and just ordered the books. I queried this with Amazon. And the response was as follows:
Listed prices include UK VAT. VAT rate for books in UK and Ireland is 0% (news to me). VAT rate on other items in UK is 15%, and 21.5% in Ireland. They are applying the VAT at the rate of the destination country. Somehow I doubt teh Irish government are getting the 6.5% VAT differential. In addition to that you also now have to pay additional VAT on the packaging because it contains items other than books.
I have never come across this before, with Amazon or any other online retailer. You should only pay VAT in the source (EU) country and not the destination country.
It seems that the transaction is deemed to take place in the country of the purchaser and not that of the vendor.
They are still cheaper than the high street in most instances, but I still don't like this practice.
More info here and here.
On a seperate issue I believe that the reason they will not ship electronics and electrical goods to Ireland is because of the product recycling fund, which they are not willing to administer the payments for.