Vat@21% in Eire and @0% in UK

usainbolt

I have recently started a business in Ireland and the products I sell are at the standard rate of vat (21% possibly going up to 23% soon :mad: in Ireland and are vat free in the UK.

I purchase the goods from Germany(7%) and the UK(0%).

Is their any way I can get around having to charge my Irish customers 21% vat. Is setting up in the UK and shipping from Ireland an option?

Any opinions and suggestions welcomed.

srsly78

How come it's 0% to the UK? Are you selling to other vat regd companies? If so then yes it's 0% to eu countries, and normal rate for Ireland. Doesn't matter tho, because your irish customers (vat regd companies) can just reclaim it or offset it.

When you are buying your goods from germany they shouldn't charge you vat, they should exempt you (after checking your vat reg details). This can be awkward to setup with foreign companies tho! You can also reclaim any eu VAT paid but this is a nightmare -.- Ask accountant about it.

Toblerone1978

srsly78 wrote: »

When you are buying your goods from germany they shouldn't charge you vat, they should exempt you (after checking your vat reg details).

You need to be careful with your wording srsly78, it's not "exempt".

But the drift of what you're saying is correct .

Mr. Incognito

I think you need to read the guide to VAT in the stickies

If you are distance selling to persons in the UK you are oblidged to register in the UK and charge UK Vat on Sales there.

If you are selling to VAT persons in Ireland they will be able to deduct it so it is VAT cost neutral to them.

sled driver

Mr. Incognito wrote: »

I think you need to read the guide to VAT in the stickies

If you are distance selling to persons in the UK you are oblidged to register in the UK and charge UK Vat on Sales there.

If you are selling to VAT persons in Ireland they will be able to deduct it so it is VAT cost neutral to them.

You are only obliged to register for VAT in UK for distance selling if you exceed a threshold amount. Up to that point, unless you elect to register, Irish VAT is charged.

The VAT cost is neutral to "VAT persons in Ireland" ONLY provided they have full VAT recoverability.

usainbolt

Thanks for all the response. Just picking up on a point mentioned above re: My German Supplier charging me 7% VAT

I supplied my German supplier with my valid VAT # but they have added VAT onto my invoice anyway. Are they within their rights to do so or can I insist on them removing the VAT amount?

Antho1966

they are not allowed charge u vat.my co has imported millions worth of goods @ zero vat

usainbolt

Antho1966 wrote: »

they are not allowed charge u vat.my co has imported millions worth of goods @ zero vat

Thanks Antho.

How should I approach my German supplier as this is an important first order with them?

srsly78

With a strongly worded email, including a photo for your original VAT certificate. Note I have had some problems with the germans in the past getting the country code for the VAT wrong. Don't forget to put IE in front of your code.

usainbolt

srsly78 wrote: »

With a strongly worded email, including a photo for your original VAT certificate. Note I have had some problems with the germans in the past getting the country code for the VAT wrong. Don't forget to put IE in front of your code.

Thanks srsly78, I sent an email and they have apologised "mistake in their System". They will issue me a new invoice later today VAT free.

Antho1966

Originally Posted by srsly78
With a strongly worded email, including a photo for your original VAT certificate. Note I have had some problems with the germans in the past getting the country code for the VAT wrong. Don't forget to put IE in front of your code.

This poster has good advice for you.

My advice is scan any documents you will be asked for on a regular basis, vat, tax certs etc.
you can then send them by email attachment.

Any business you get involved in, always get a ruling from the revenue,they and the army are the most effeicent of our civil servants. dat word is spelt rong ok.

Revenue will always help. note time of call, person you spoke to,keep copy of your phone bill and you should be fine

hope ive helped

usainbolt

Thanks for the replies most appreciated.