0 VAT Rated Items some advice needed

trade-it

Hi everyone,

Im pretty new to the boards so apologies if this question has been asked many times before! Im looking to start up a small business selling sports supplements, just something extra to earn a few €€'s. Ive found a supplier here at home in Dublin (wont give me wholesale prices without a VAT number) and one in the UK. The guys in the UK sent on their wholesale price list and certain products were 0 rated, i checked revenues website & thats not what VAT law states about supplements can someone confirm? IF VAT needs to be added dont know how these guys can advertise them as 0 rated items!!

Anyone have any ideas if there are good wholesalers across the border im looking to keep shipping costs to a minimum?

Thanks

trade-it

antoinolachtnai

VAT situation might be different in the UK.

Not necessarily cheaper to ship from NI to Ireland.

wishful thinker

trade-it wrote: »

Hi everyone,

Im pretty new to the boards so apologies if this question has been asked many times before! Im looking to start up a small business selling sports supplements, just something extra to earn a few €€'s. Ive found a supplier here at home in Dublin (wont give me wholesale prices without a VAT number) and one in the UK. The guys in the UK sent on their wholesale price list and certain products were 0 rated, i checked revenues website & thats not what VAT law states about supplements can someone confirm? IF VAT needs to be added dont know how these guys can advertise them as 0 rated items!!

Anyone have any ideas if there are good wholesalers across the border im looking to keep shipping costs to a minimum?

Thanks

trade-it

the situation is if you have a irish VAT no, you provide those details to the EU supplier (in this case uk). They then invoice you at a zero rate (would be shown as 0% on the invoice). Then, when you are doing your VAT returns you account for it on a reverse charges basis (ask your tax advisor on that one).

-you must register for VAT to get a VAT no.
-you provide EU suppliers with your VAT no
-they invoice you at a 0% VAT.
-You then self-account for it on reverse charge basis on your VAT return

antoinolachtnai

Researching further, the UK supplier is referring to the following:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000118&propertyType=document#P416_24840

Certain dietary supplements may be treated as food in the UK and so do not attract VAT.

It is not required (and indeed would be contrary to his interests) for the OP to register for VAT, if he is only going to sell a few thousand euros worth of product per year.

MOH

Am I right in thinking that in that case, you can just "pay" the 0% UK VAT to the supplier and you've no further VAT obligation (assuming you're not registered for VAT).

The Guvnor

Apart from Vat regulations which differ wildly between the UK & Ireland (by and large in Ireland's favour), you have a LOT and I do mean a LOT of products legal in the UK which are not legal here in Ireland.

It is a very populated marketplace but good luck making a go of it.

I see no reason why you need to supply a vat number to buy some supplements.

I know many CO's who would not require this from you.

How much are you looking to invest in getting started? How do you intend to market/sell/distribute the products?

The Guvnor

Just to clarify there is vat on certain supplements in Ireland but it is less than in the UK.

What vitamins/supplements attrtact vat in Ireland is not always easily verifiable.

trade-it

hi everyone,

thanks for the responses really appreciated

*Guvnor the reason i need the VAT number is that any suppliers ive contacted wont set up a trading account online for you to order goods or provide the wholesale prices so that's the catch- NO VAT number no wholesale prices. I'm then left with a decision to go as sole trader or limited company. Of course if you know of any companies that are willing to sell at wholesale prices without being VAT registered please let me know