VAT setting up business ir Ireland or UK?

trad

I'm considering setting up a business bringing freight (parcels) from the UK to Ireland. It will be an online business and in order to offer the best value for money to the customers I'm looking at the possibility of registering the business in Wales - lower VAT rates and direct comparison for savings eg £15 versus £30 so my customers can immediately see the saving (the Brits only quote shipping in sterling)

Anyone know how the VAT element will work? If I use an Irish firm to do the deliveries within Ireland, as a Welsh company will it be charged the Irish VAT or is it considered vat free as it's being caried out for a Welsh company.

Phil the Drill

Its tricky, I'm setting up myself at the moment and looking for info too, all I found was info on importing from "outside" the EU which isnt helpful at all.

Its like they are trying to avoid saying "Pay VAT on imports within the EU in the country of origin only" which I think is the case but Customs and Excise duty cant be avoided...

honeymonster

There's a small bit of info here:

http://www.soi.ie/Articles/vat.htm

swanvill

Hi,
This information is a starting point only, you should hire an accountant to be absolutely sure and to double check all the facts.


Based on the information supplied if you were only acting as an import/export courier,the applicable VAT rate is 0% http://www.revenue.ie/en/tax/vat/rates/decision-detail-02248.html

However if it is courier post/mail service then the VAT rate is 21.5%
http://www.revenue.ie/en/tax/vat/rates/decision-detail-02299.html

I must admit VAT is a very complex area and with high volumes/values of transactions an error could cost you thousands, as you can see with a €100k of sales you could end up with a €21,500 error if you charge the wrong rate and if you have to absorb that loss it would hurt.

I strongly recommend that you meet with an accountant and discuss your business in detail not just VAT all aspects of the business such as structure, corporation tax & exchange rate risk.

If you would like my help further please contact me.

Swanvill.

Phil the Drill

I done my research into VAT alright, I'll be strictly a courier of goods so 0% on that but VAT on the service I provide.

Info on customs and excise within the EU is hard to find though. Do you know anything about this?

swanvill

Hi Phill The Drill,

Your question is very broad so I am not sure what you are looking for.

A helpfull website (which you may have already checked out ) is the following:

http://europa.eu/scadplus/leg/en/s28000.htm#DOUANES

This might point you in the right direction and answer your query.

trad

Thanks for all the info. I'll take on board your advice and consult an accountant if we go ahead with this project. Like you say if you get it wrong a 21.5% error will wipe up out.

We have a viable software option available and have identified all the necessary contractors, I suppose it time to put up or shut up