vat questions on becoming a distributor

jon1981

hi,

i have identified a product that is not yet sold in ireland and im thinking there might be a market for it here. I have contacted the manufacture and i have the distributor information, cost and commitment. what im more interested about is the VAT side of things.

If i have a price per unit from the manufacturer ( USA) , do i have to add the VAT on to the product before selling it to the retailer and then does the retailer again have to add VAT to the price?

if this is the case, is it possible i can claim the VAT back?

so basically

manufacturer -> Distributer ( unit price + markup + vat) -> retailer ( distributor price + markup + vat) -> consumer is that it?


is that the VAT chain?

kenbrady

jon1981 wrote: »

hi,

i have identified a product that is not yet sold in ireland and im thinking there might be a market for it here. I have contacted the manufacture and i have the distributor information, cost and commitment. what im more interested about is the VAT side of things.

If i have a price per unit from the manufacturer ( USA) , do i have to add the VAT on to the product before selling it to the retailer and then does the retailer again have to add VAT to the price?

if this is the case, is it possible i can claim the VAT back?

so basically

manufacturer -> Distributer ( unit price + markup + vat) -> retailer ( distributor price + markup + vat) -> consumer is that it?


is that the VAT chain?

You only add vat and reclaim vat if you are vat registered

1.1 You buy goods from America you pay government vat - Unit price .21%
1.2 You can claim the vat paid back off the government

2.1 You add VAT to the price of goods you sell to distributor - (Unit price + MarkUp) *1.21%
2.2 You give the vat to the government

2.2 - 1.2 is the amount you give to government.

It works the same for the other parties. Really the only people who pay VAT are the general public.

DubTony

I just HAD to fix this for the sake of clarity

kenbrady wrote: »

You only add vat and reclaim vat if you are vat registered

1.1 You buy goods from America you pay Irish government vat at point of entry- Unit price .21% VAT will most likely be at 21%
1.2 You can claim the vat paid back off the government if you're registered

2.1 You add VAT to the price of goods you sell to distributor - (Unit price + MarkUp) *1.21% PLUS 21%
2.2 You give the vat to the government in your regular returns

2.2 - 1.2 is the amount you give to government. The amount you give to the government is the amount of VAT you gave charged your customer

It works the same for the other parties. Really the only people who pay VAT are the general public.

kenbrady

I'm right

DubTony wrote: »

2.2 - 1.2 is the amount you give to government. The amount you give to the government is the amount of VAT you gave charged your customer