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Website operating in UK with Irish VAT

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  • 18-01-2010 11:45am
    #1
    leom
    Registered Users Posts: 112 ✭✭


    Folks,
    I am planning to launch a website in UK and Ireland. I have domain names for both.
    Can my site make money from UK consumers with Irish VAT. Is there any legal obligation on that.
    Tagged:


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    #2
    MOH
    Registered Users Posts: 6,464 ✭✭✭MOH


    If you're selling over a certain amount into the UK then I believe you'll need to register for VAT there and charge at the UK rate. Not sure what the threshold figure for the UK is, I'm sure a quick search on the UK revenue site will find it.

    (Though you might be better off doing so anyway - surely your prices will be less comeptitive if you're charging 2.5% more VAT?).


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    #3
    J_Wholesale
    Closed Accounts Posts: 245 ✭✭J_Wholesale


    Yes. You only need to register for VAT in the UK if your UK income to non VAT registered customers exceeds the UK threshold (£70,000, I think). But once you reach this stage, you must register in the UK as well as Ireland.

    Don't forget that if you are charging Irish VAT only, then UK customers who are VAT registered will not need to pay VAT.


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    #4
    MOH
    Registered Users Posts: 6,464 ✭✭✭MOH


    Here's the relevant UK revenue page


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    #5
    Mickk
    Registered Users Posts: 1,001 ✭✭✭Mickk


    Some items are zero rated in Ireland and 17.5% in the Uk so that could be a massive advantage (some of the food/sports supplements are the opposite of this example).


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    #6
    The Guvnor
    Registered Users Posts: 2,800 ✭✭✭The Guvnor


    An advantage upto a point Mick.

    Can we assume the goods will be stored and shipped from Ireland?

    Then as has been stated once you exceed £70,000 in total sales you will need to comply with distance selling regulations under VIES/INTRASTAT.

    This is a tricky question to answer because we are talking of saving charging VAT on £70,000 at a rate of 17.5% or £12,250 to be precise.

    Will you have any expenses within the UK, could you be reclaiming VAT from HM Customs etcetera.

    Is your sales Business to Consumer or B2B?


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    #7
    leom
    Registered Users Posts: 112 ✭✭leom


    The Guvnor wrote: »
    An advantage upto a point Mick.

    Can we assume the goods will be stored and shipped from Ireland?

    Then as has been stated once you exceed £70,000 in total sales you will need to comply with distance selling regulations under VIES/INTRASTAT.

    This is a tricky question to answer because we are talking of saving charging VAT on £70,000 at a rate of 17.5% or £12,250 to be precise.

    Will you have any expenses within the UK, could you be reclaiming VAT from HM Customs etcetera.

    Is your sales Business to Consumer or B2B?

    Thanks for detailed answer. Mine would be adverts space for consumers. They would be able to post ads on my site for given duration.


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