Home Forums Bike Forum VAT on cycling helmets

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  • VAT on cycling helmets
  • escrs
    Free Member

    Now as far as im aware the UK has a no VAT policy on cycling helmets

    https://www.gov.uk/guidance/protective-equipment-and-vat-notice-70123#pedal-cycle-helmets

    Yet on the German site Bike24 at the checkout when i select UK they add on 20% VAT

    If i select a non VAT country (Singapore for example) the price drops by 20%

    Any idea why and are any UK shops doing this?

    riklegge
    Full Member

    Surely if you are buying from a German site, you are paying German VAT?

    dangeourbrain
    Free Member

    Because bike 24 is paying the vat in Germany. Yes in theory it’s a reciprocal agreement and is ultimately paid as UK VAT but I would absolutely expect them to charge VAT in line with German rules if not rates.

    escrs
    Free Member

    Nope German VAT is 19% (as shown when selecting Germany for delivery)

    escrs
    Free Member

    As already said if you select a non VAT country like Singapore the price drops by 20%

    Also tried the following and no VAT was added

    Ecuador, Jersey, liechtenstein etc..

    Select other countries that charge VAT and the rate changes to that countries VAT rate

    So why are they charging UK customer 20% VAT on helmets when they are VAT free in the UK

    nixie
    Full Member

    If bike24 are big enough I think they have to pay the vat directly to the UK. It may just be that they don’t realise that helmets are vat exempt. Why don’t you ask them and they may be able to change it. Or perhaps their site is shonky and doesn’t have item level vat banding (country only).

    dangeourbrain
    Free Member

    As an individual in the EU you pay VAT in the country of origin, but it should be destination VAT if they’re dealing into the destination a lot.

    They’ll apply it the same way as German VAT, so, if its VATable in DE it’s VATable sending it outside of DE.
    You can probably complain and have it zero rated because it is UK VAT you’re being charged so should only be applied as it would in the UK. Good luck with that.

    http://www.europarl.europa.eu/doceo/document/E-8-2016-003553-ASW_EN.html?redirect

    Might help but it might not 😉

    Edit: the only countries paying VAT on exports from the EU are other countries in the EU. In the EU Its charged at (a) origin rate if you do <threshold amount. (b) destination rate if you do more. None of the countries you listed will be paying VAT within the EU so they’re pointless comparisons.
    Given 0 rate is an exemption from EU rules on VAT if fully expect it to be treated differently under export than internally.
    Eg. I assume HMRC has no jurisdiction to grant a (back dated) exemption within DE so its applied at prevailing rate. Any mechanism to reclaim the VAT will be you claiming it back from Hmrc.

    onehundredthidiot
    Full Member

    Maybe they don’t have the facility to switch VAT on and off for various items. So the country is either +VAT or not?

    dangeourbrain
    Free Member

    Maybe they don’t have the facility to switch VAT on and off for various items.

    Actually thinking about the paperwork side of it, exports out of Germany are declared at sales value, not dutyable value so yeah, there’s actually nowhere to declare things as 0 rate that I recall.

    escrs
    Free Member

    So after a bit of digging on their website it seems they charge VAT on every item sent within the EU, charging the correct amount for each specific countries VAT rate

    It looks like you could try and claim it back but they say this is only possible outside of the EU

    Also looked at a UK shop who advertise their helmets with VAT and without VAT

    https://www.teamskene.com/helmets/2017_fox_proframe

    Surely this should be advertised at the non VAT price only???

    feed
    Full Member

    Also looked at a UK shop who advertise their helmets with VAT and without VAT
    https://www.teamskene.com/helmets/2017_fox_proframe
    Surely this should be advertised at the non VAT price only???

    Probably, but if I order a helmet from a UK site (going to ROI) I get charged the ROI VAT rate.

    welshfarmer
    Full Member

    Since Wiggle now own Bike24 I am pretty sure they are up to speed on how to charge VAT within the EU.

    Are you sure there is no VAT on helmets. I seem to remember that was one of the benefits sold to us for leaving the EU was that we would be able to define our own vatable goods and not be tied within EU wide standards??

    chestercopperpot
    Free Member

    Within the EU not a problem, sellers outside not so much!

    I got charged VAT and a fee (nice little butty for the post office because they can) due to the incompetence of the seller Jenson USA. Jenson didn’t respond to emails and the customs department (wouldn’t surprise me if it’s a private sector admin cabal) were as unhelpful as possible. Only offering a lengthy process to get it returned, requiring ridiculous levels of proof.

    I don’t buy anything from Jenson USA anymore, they can get teh ****.

    escrs
    Free Member

    Probably, but if I order a helmet from a UK site (going to ROI) I get charged the ROI VAT rate.

    That’s because the ROI charge VAT on helmets where as the UK dont, if you were to pop over the border to NI you wouldnt pay VAT on a helmet

    Are you sure there is no VAT on helmets

    https://www.gov.uk/guidance/protective-equipment-and-vat-notice-70123#pedal-cycle-helmets

    doomanic
    Full Member

    Is there a process for reclaiming VAT incorrectly paid?

    feed
    Full Member

    That’s because the ROI charge VAT on helmets where as the UK dont, if you were to pop over the border to NI you wouldnt pay VAT on a helmet

    Thanks escrs, was aware of that, I use “parcel motel” to get deliveries to NI for helmets (to avoid VAT) and for other items where the seller doesn’t ship to ROI or charges an excessive delivery amt to ROI. Parcel Motel forward from NI to pick up points in ROI.

    Totally agree with the UK position that safety equipment should be VAT free.

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