E-Commerce, VAT | 10. June 2021

Lea’s VAT rules Update for May

As a VAT Consultant, I share information in this series on the curiosities of VAT rules for certain products in particular countries of the EU. by

On my LinkedIn account, I share weekly information about the regulations on VAT rules, which often seem confusing and hardly comprehensible to end consumers. But it is not only in Germany that some absurd regulations apply; in other EU countries, too, supposedly identical products are taxed differently. In my articles here, I summarise a number of hand-picked gems and present them in more detail.

Children’s shoes in Iredland, Northern Ireland and Luxemburg

Shoes designed for children are taxed at a reduced VAT rate in Ireland, Luxembourg and Northern Ireland. But be careful – the conditions aren’t the same everywhere. In Ireland, shoes for children up to and including size 38 are VAT reduced. In Luxembourg and Northern Ireland, girls and boys shoes are taxed differently based on their size and heel height.

Dog food in Ireland and Northern Ireland

In the Republic of Ireland and Northern Ireland there is a reduced rate of VAT on food for greyhounds. However, be aware – in Northern Ireland, only food (other than biscuits) for racing greyhounds is eligible for VAT relief. If the greyhound is kept as a pet, its food falls under the standard VAT rate.

Onions in Italy and Portugal

Compared to other EU countries, onions are not treated equally for tax purposes in Italy and Portugal. Italy taxes dried and chopped onions at a 10% VAT rate, but if they are fresh and whole they are taxed at only 4% VAT. Portugal also makes a distinction here and applies its reduced VAT rate of 6% only to fresh and whole onions – when they are dried and chopped the VAT rate is a whopping 23%.

eClear offers the right solution with VATRules

Is the sale of goods taxable or tax-free? Which tax rate is applicable? – Regular, reduced or super-reduced? Which exemptions and re-exemptions apply? VATRules applies this tax content in your ERP or shop system. Article-specific, always up-to-date, and for all EU-27 (plus CH, UK, NO).

Author

Lea-Luisa Blase
Lea-Luisa Blase successfully completed her master's degree in business and tax law at the University of Potsdam. She then worked as a tax assistant at BDO AG Wirtschaftsprüfungsgesellschaft. As an editorial project manager, she then expanded her profession at an online seminar provider specifically for the tax sector and is currently employed at eClear as a VAT consultant in the internal tax department. She also prepares the content for the eClear VATRules, which contain more than 800,000 tax codes including all exceptions, reductions and exemptions.
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