Vat on Products from North of Ireland

jayo2004

Hi i will be buying a lot of goods from the north and was wondering what way the vat works out. Is it 21% and can I claim it back in the Rep. Of Ireland?

smashey

Give them your VAT number and you shouldn't have to pay it.

jayo2004

At the moment I am not registered for VAT but they are charging me 17%VAT. They told me to get a VAT number. So If I get a VAT No. who do I pay VAT to? Could you explain a bit more as I havent a clue:o

Mr. Incognito

If you are a VAT registered trader you are entitled to deduct VAT on your purchases.

You are also oblidged to charge VAT on your services at the appropriate rates.

You will file a bi monthly VAT return and pay over to revenue the difference between your input credits and output accountable VAT if any.

You savy?

Legend100

And being vat registered in Ireland will mean that when you give the frim in the North your vat number, you will not be charged vat on THESE goods

drunkmonkey

could someone give an example of the complete cycle,

please correct me with this...

You buy something from the north, let's say it cost £117 Including Vat...
Your Vat registered in Ireland, If you Provide your vat number to the UK business you will not be charged vat at 17%
You Pay £100(€126.15) for the goods...

You then resell the goods for €300 and pay vat at 21% of the sale price...€63 (You've collected the vat and have to give it to the vat man)

Your then left with €110.85 profit (sale price less vat and cost of goods) and I get confused after this part....

tks
dm..

aidan.connolly

Hi , If you take another look at your example:

Goods sold by you 300.00 vat 63.00 Total 363.00
Goods purchased by you 126.15 Vat 0.00 Total 126.15

Vat payable to Vat man 63.00

Your profit 300 - 126.15 = 173.85

When you complete your vat return you must self-account for the vat on the goods you purchased from the north. It does not effect your cost of the goods or the profit made.
Hope this makes sense.