Question about purchasing and distributing

Fannymcslap

Hi guys, hope this is the right forum, couldn't find a better fit anywhere else.

Basically I'm looking into Drop Shipping, which to the uninitiated is essentially me buying a product off a wholesaler at a discount and selling to a consumer at a profit. The clincher is that I act as a middle man essentially, the wholesaler ships directly to the consumer and I purchase the product from the wholesaler.

My question is, how would the taxation apply to this in Ireland? Say for instance I go into a business with a wholesaler in the states and a consumer purchases a product from me who are also based in the states. I take commission and the wholesaler ships to the consumer. Therefore no product enters Ireland.

I understand this may be confusing but I'm just trying to see exactly what manner of tax I'd be liable for?

Many thanks in advance,

fmcs

Clanket

A lot of factors come into play. Are you registering as a company?

If so, taxation would be based on the country where you register as a company. So you would be liable to Irish corporation tax on profits made.

If you don't register as a company, you would be liable to Irish Income tax on profits assuming you are Irish resident and domiciled.

However, VAT is a completely different story. Triangulation, VAT at point of entry etc. will need to be considered.

You should look at the Revenue.ie website, especially the VAT guides for guidance if you want to learn it on your own. Otherwise you'll need to talk to a professional.

PM if you decide to go the professional route.