VAT STOPPED BEING COLLECTED FOR ORDERS TO IRELAND REPUBLIC?

[ArganOilDirect]

Tried to place order from UK seller accounts as normal for delivery to Republic of Ireland ( EU).

ETSY always add VAT to the product price and collect under IOSS scheme. So orders go through without customs problems.

But just tested this and now ETSY are not adding the VAT for Ireland.

VAT is still added to other EU destinations - Spain , France etc. but has stopped working to Ireland? ( Not northern Ireland )

Customer support do not seem to understand what I am talking about.

Big headache.

Suggestions why ETSY not adding VAT to orders from our store for customers welcome ASAP.

[BootifulLabels]

Just a thought, but has the seller you are purchasing from perhaps reached the point where their sales to EU have surpassed the level where they now have to register and collect EU VAT themselves?

If this is the case, once registered the seller has to include the VAT in their pricing as Etsy does not (unless it has changed recently) have a system in place for seller collected VAT to be shown separately.

That is all I can think of as to why VAT would not show when you order.

[FancyTogs]

@BootifulLabels 

You are getting mixed up with OSS requirements for EU & NI sellers.

Sellers outside the EU & NI don't have any turnover threshold for registering for OSS EU VAT themselves.

Lawrence

[CraftyCornishMaids · Accepted solution]

I went to other shops, and etsy adds VAT to their products for Ireland

not yours

have you put the correct tariff code/category, as for oil used a foodstuff is zero rated for Ireland, and maybe it's the code putting it in as zero rated category

and add the EU registration number for your testing, as they are classed as cosmetics, so need to be tested to EU regs, and registered to sell to the EU

[ArganOilDirect]

OK I put in a one of our cosmetic oils in cart and VAT is added. But our Food Oils.. no VAT.  As you say VAT is 0 in some countries.  Strange thing is I have not changed anything, HS Tariff codes, or Descriptions. So ETSY has been incorrectly taking VAT for the past years! Maybe ETSY now link VAT collection to product category?  Mind you... they are still collecting the VAT if posting to France , Spain and possibly other EU countries?

[FancyTogs]

@ArganOilDirect 

what is your user region set to when it adds VAT?

Lawrence

[FancyTogs]

Some possibilities:

• Etsy have done it wrong
• The seller's shop location is being detected by Etsy as being within the EU, or NI.
• Etsy have decided that the product is zero rated for VAT, eg. food
• The order is over €150. Etsy only collect IOSS VAT on orders to the EU below €150. For orders over €150 customs duty is also charged, and the VAT has to be calculated on the value including customs duty. Customs duty currently is only decided by the customs officers, so as a result the VAT can only be charged by the customs office, hence the VAT is paid by the buyer on delivery.

Lawrence (Clare's other half)

[FancyTogs]

• Or delivery country on listing page is not set to Ireland when placing in the basket/cart.

Lawrence

[FancyTogs]

Just tested and:

• VAT is correctly included when buyer region is Ireland and listing page delivery country is Ireland.
• VAT is incorrectly not included when buyer region is UK and listing page delivery country is Ireland.
• VAT is incorrectly included when buyer region is Ireland and listing page delivery country is UK.

So it looks like Etsy have messed up.

They are determining VAT based on the buyer region, and not the delivery country.

Lawrence

[FancyTogs]

One of my test items may have used a food product.

I did not realise you had food items as well as cosmetics.

Re-testing with a cosmetics item and VAT is still incorrectly not included when buyer region is UK and listing page delivery country is Ireland.

Lawrence

[FancyTogs]

Testing again, this time a culinary item, and with the user region set to Ireland and listing page delivery set to UK, VAT is incorrectly being added.

It really looks like they are using the user region setting instead of the delivery country to determine VAT.

Lawrence