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Website trading from Ireland into UK?

  • 01-02-2012 4:10pm
    #1
    calerbass
    Closed Accounts Posts: 303 ✭✭


    Hi, Could anyone point me in the right direction regarding trading in Ireland with a website business and focusing on the UK market? i have a shop/classifieds type website.......what are the rules, legislation governing it or is it just trade away/market your service and pay your taxes here in Ireland?


Comments

  • #2
    DubTony
    Registered Users, Registered Users 2 Posts: 3,267 ✭✭✭DubTony


    Just trade. Check with UK tax people what their vat threshold is, as you'll be required to register with them, and pay to them, if you reach it.


  • #3
    calerbass
    Closed Accounts Posts: 303 ✭✭calerbass


    DubTony wrote: »
    Just trade. Check with UK tax people what their vat threshold is, as you'll be required to register with them, and pay to them, if you reach it.

    Thanks for that.


  • #4
    onedmc
    Registered Users, Registered Users 2 Posts: 456 ✭✭onedmc


    I don't believe that you 'have' to register with the uk authorities. I'm certain that you can just apply the Irish rate and if you are selling to businesses it may be beneficial not to have a uk registration.

    Call the revenue they are always very helpful with this sort of stuff.


  • #5
    calerbass
    Closed Accounts Posts: 303 ✭✭calerbass


    onedmc wrote: »
    I don't believe that you 'have' to register with the uk authorities. I'm certain that you can just apply the Irish rate and if you are selling to businesses it may be beneficial not to have a uk registration.

    Call the revenue they are always very helpful with this sort of stuff.

    Great, thanks, i have to call to revenue during the week and ill ask them


  • #6
    smeharg
    Registered Users, Registered Users 2 Posts: 300 ✭✭smeharg


    onedmc wrote: »
    I don't believe that you 'have' to register with the uk authorities. I'm certain that you can just apply the Irish rate and if you are selling to businesses it may be beneficial not to have a uk registration.

    Call the revenue they are always very helpful with this sort of stuff.

    If you are selling into the UK to non-vat registered individuals you must register for UK VAT if your sales in the UK exceed £70,000 in any 12 month period. This is known as the "distance selling" rules.

    If you are selling to VAT registered businesses you can charge 0% VAT provided certain requirements are met.


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  • #7
    nompere
    Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    smeharg wrote: »
    If you are selling into the UK to non-vat registered individuals you must register for UK VAT if your sales in the UK exceed £70,000 in any 12 month period. This is known as the "distance selling" rules.

    If you are selling to VAT registered businesses you can charge 0% VAT provided certain requirements are met.

    If you are selling business to business within the EU the other business must provide you with a local VAT number, and you do not charge any VAT - not even at 0%.

    If they don't supply you with a local VAT number then it becomes a business to consumer sale, and you will have to charge VAT, either under your Irish number if you aren't registered in the UK, or at the UK rate using your UK registration.

    As smeharg says, if you exceed the UK registration limit then you have to register in the UK.

    UK Customs are not people to mess with - Revenue staff in Ireland are a bunch of pussy-cats by comparison.


  • #8
    smeharg
    Registered Users, Registered Users 2 Posts: 300 ✭✭smeharg


    smeharg wrote: »
    ...
    If you are selling to VAT registered businesses you can charge 0% VAT provided certain requirements are met.

    I should have stressed "businesses in other EU countries"
    nompere wrote: »
    If you are selling business to business within the EU the other business must provide you with a local VAT number, and you do not charge any VAT - not even at 0%.

    I think technically VAT is charged at 0% per Sch 2 of VAT Consolidation Act, 2010. If no VAT was charged it would be an exempt supply and no input credit would be allowed in respect of that supply.
    nompere wrote: »
    UK Customs are not people to mess with - Revenue staff in Ireland are a bunch of pussy-cats by comparison.

    In my experience, like here, it depends on who you get. Having said that the division that deals with non-resident registrations are no pussy cats, probably because compliance mightn't be that great.


  • #9
    Elements
    Registered Users, Registered Users 2 Posts: 6 ✭Elements


    I'm not sure this is clear enough. By 'individuals' I would take that to mean 'consumers' not 'businesses'.
    If you are selling to consumers - e.g. Joe Bloggs etc - then you can sell them however much you like from your website and you don't need to register for UK vat.
    Because:
    The consumer will be paying your Irish retail price which already includes vat @ 23% - put another way: You will be collecting vat @ 23% from your customer because they are buying in Ireland (just like if they were physically in your shop here) and then you will be returning that vat to the IRISH government. The UK government doesn't need collect vat from you.
    If you are selling to non-vat registered Businesses then that's a whole other story, as the above posts outline!
    p.s. All of this is on the assumption that you also are a vat registered business!


  • #10
    smeharg
    Registered Users, Registered Users 2 Posts: 300 ✭✭smeharg


    Elements wrote: »
    ...
    If you are selling to consumers - e.g. Joe Bloggs etc - then you can sell them however much you like from your website and you don't need to register for UK vat.
    ...

    Sorry, you're wrong. Have a look at the HMRC guidance on distance selling into the UK here
    Elements wrote: »
    Because:
    The consumer will be paying your Irish retail price which already includes vat @ 23% - put another way: You will be collecting vat @ 23% from your customer because they are buying in Ireland (just like if they were physically in your shop here) and then you will be returning that vat to the IRISH government. The UK government doesn't need collect vat from you.

    Wrong again. If you are required to register for UK VAT under the distance selling rules then the place of supply is the UK and no Irish VAT is charged.


  • #11
    Elements
    Registered Users, Registered Users 2 Posts: 6 ✭Elements


    Hi Smeharg,

    Apologies, looks like you're right!
    Crikey, sounds like it's a bit of a paper nightmare to me with even more vat returns! As well as presumably increased costs as Calerbass may need to get UK accounts done...


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  • #12
    smeharg
    Registered Users, Registered Users 2 Posts: 300 ✭✭smeharg


    More VAT returns, yes, if the distance selling thresholds are exceeded.

    Each EU country has it's own threshold. In the UK it just happens to be the same as the registration threshold for UK businesses, but it can vary from country to country. For example, the distance selling threshold for sales into Ireland is just €35,000 which does not have any correlation with the domestic registration thresholds.

    There's no need for UK accounts unless there's a physical presence in the UK.


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