VAT on overseas sales

Vex Willems

At present we are selling online to customers in Ireland only and charge VAT on every purchase. We now want to expand this to the UK and Europe, but I'm confused as to what to do regards to VAT. If someone from the UK was to phone up and order an item thats grand as you just ask them their VAT number and then don't charge VAT.

But online it is all done automated so what do you do if someone has a VAT number or not? If given an option of entering a VAT number for price minus VAT, would this be open for abuse if someone did this and didn't have a VAT number? Or if you charge VAT on everything do you have to register for VAT in every country you sell to?

smeharg

Vex Willems wrote: »

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But online it is all done automated so what do you do if someone has a VAT number or not? QUOTE]

I would've thought the automation was a plus. Customer enters VAT number (if they have one); run an auto check on the validity of the VAT number (which you should be doing anyway); match name/address per VAT records with order/delivery name address; if all agrees VAT at 0% if it doesn't VAT at 23% or contact customer to clarify.

There are also distance selling rules to be aware of. Each EU country has a threshold for distance sales to non-VAT registered individuals resident in that country. Eg if an EU company is distance selling into Ireland it must register for Irish VAT if its sales to Ireland exceed €35,000. The corresponding threshold for sales into the UK is £70,000. Note the distance selling threshold is not necessarily the same as domestic registration threshold.

srsly78

OP use this to validate vat numbers: http://ec.europa.eu/taxation_customs/vies/

Vex Willems

my bad, turns out my cart can validate vat numbers, didn't think it could. That should solve that problem