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Query: VAT on goods from UK?

  • 02-12-2011 9:25pm
    #1
    wfitzgerald
    Registered Users, Registered Users 2 Posts: 13 ✭


    Dear Experts, If I have posted to the wrong forum, please advise of correct location. I have purchased an car diagnostic scanner from a UK company called beatthegarage (on ebay). http://www.beatthegarage.com/ However, the device is manufactured in China. DHL are due to deliver the item. I am wondering will they be expecting me to pay VAT on the item? My assumption is that all items in the EU are VAT free when delivered to other EU destinations. I have heard of stories where DHL have tried to get VAT money on behalf of the taxman and I am hoping this is only for international goods and not to underhandedly do so for goods shipped within the UK. regards, Will.


Comments

  • #2
    srsly78
    Registered Users, Registered Users 2 Posts: 7,157 ✭✭✭srsly78


    Don't get confused between VAT and customs charges.

    Also, VAT is only exempt within the EU for trades between VAT registered participants.

    Why did you give exact details about the item, even including the suppliers website? Not really needed, and could be interpreted as thinly-veiled marketing.


  • #3
    RUDOLF289
    Registered Users, Registered Users 2 Posts: 794 ✭✭✭RUDOLF289


    wfitzgerald wrote: »
    Dear Experts, If I have posted to the wrong forum, please advise of correct location. I have purchased an car diagnostic scanner from a UK company called beatthegarage (on ebay). http://www.beatthegarage.com/ However, the device is manufactured in China. DHL are due to deliver the item. I am wondering will they be expecting me to pay VAT on the item? My assumption is that all items in the EU are VAT free when delivered to other EU destinations. I have heard of stories where DHL have tried to get VAT money on behalf of the taxman and I am hoping this is only for international goods and not to underhandedly do so for goods shipped within the UK. regards, Will.

    Hello WFitzgerald,

    If you are a VAT registered trader and have advised your supplier in the UK with your VAT registration details, then your UK supplier is entitled to apply a zero rate to his invoice. In addition he files a VIES return (or European Sales Listing) where he details the transaction from his VAT number to your VAT number. Furthermore if he exceeds the threshold for exports to other EU member states he is obliged to file an Intrastat return.

    On the receiving side, you are required to account for your (Intra EU) acquisition in your VAT return. In Box T1 you enter the liability for the VAT @ the VAT rate that applies in Ireland on your acquisition from the UK. In Box T2 you claim a deductible for the same amount. In box E3 you enter the value of the goods you have bought from the UK. Provided you do not exceed the threshold of € 191K per annum in terms of imports from other EU member states, you are not obliged to file an Intrastat return.

    DHL is only obliged to collect VAT and Duty on imports from non EU countries. For imports from other EU member states the above process applies.
    srsly78 wrote: »
    Don't get confused between VAT and customs charges.

    Also, VAT is only exempt within the EU for trades between VAT registered participants.

    Why did you give exact details about the item, even including the suppliers website? Not really needed, and could be interpreted as thinly-veiled marketing.

    At the risk of splitting hairs, trade between registered VAT trader in different EU member states is not exempt from VAT. However you are permitted to apply a zero rate to your sales to other EU member states, provided that you have proof of (and checked) the VAT details of the party you are supplying and provided you follow the process as detailed above.

    Cheers,
    Rudolf289


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