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).