Am I liable to charge VAT on goods?

flyboy235

Hello there,

I have recently started my own sole trader business which specialises in the sale of electronic goods on the internet. Before commencing trade I called revenue and spoke to 2 different people who both assured me that if I registered for VAT solely due to EU aquasitions, I would not be liable to charge VAT until I reached the annual threshold of 75000 euro. So this is how I operate. My supplier is based in France. I have given him my Intra-community VAT number so he in turn sells me stock exclusive of VAT. When that stock comes to me in Ireland I then sell it on the internet. Now it is my understanding that I do not have to charge VAT on these goods until such a time when my turnover is above 75000 euros. I know I must file returns every 2 months regardless however I simply put zero in the vat owed box on the VAT3 return form.
Also when filling out the TRN1 form I ticked yes to ''Are you registering for VAT solely due to EU aquisitions?'' This is because the only reason I registered is so I can get my stock VAT free from france.

So my question is basically, Is this correct? Although I have been told that it is by two different people from revenue, It does seem a bit odd! Anyone I have said this to began to argue the point that VAT must be charged somewhere along the line.
Any insight would be greatly appreciated.

Thanks!

Alan Shore

Do you have the names of the people in the Revenue that you spoke to? Did you explain exactly the details of your business?

What is the turnover threshold for VAT registration?

The principal thresholds applicable are as follows:

(a) €37,500 in the case of persons supplying services,
(b) €37,500 for persons supplying goods liable at the reduced or standard rates which they have manufactured or produced from zero rated materials,
(c) €37,500 for persons making mail-order or distance sales into the State,
(d) €41,000 for persons making intra-Community acquisitions,
(e) €75,000 for persons supplying goods,
(f) €75,000 for persons supplying both goods and services where 90% or more of the turnover is derived from supplies of goods (other than of the kind referred to at (b) above) and
(g) A non-established person supplying taxable goods or services in the State is obliged to register and account for VAT irrespective of the level of turnover.
A taxable person established in the State is not required to register for VAT if his or her turnover does not reach the appropriate threshold above. However, they may opt to register for VAT.
Are your EU acquisitions over €41,000? You should be self accounting for VAT so you charge yourself Irish VAT and because you are only registered for VAT on EU acq then you should not take the input credit. So you suffer VAT at the Irish rate not the French rate.

You can't have the eu acq zero rated and not charge sales VAT on them!