UK VAT and Irish VAT

Businessnoob

hi all,

Quick question,

If i buy stock from the UK while paying there 21%
when i go to sell it in Ireland do i need to add and pay our 23%
making in total of 44% in VAT paid between the 2 countries?

Or do i just pay the UK and and add the extra 2% difference.

I'm not VAT registered yet so am unable to claim any VAT back for anything .

Any help or clarification would be gratefully appreciated.

smeharg

If you are not VAT registered you do not charge VAT - ever.

The VAT you pay on purchases just becomes part of the cost. So if you buy a widget from the UK at £100 plus VAT at 20% that widget costs you £120.

You should then calculate your selling price based on the cost of £120. So if you have a standard mark-up of say 3 times cost then your selling price will be £360 (converted to euro of course). VAT doesn't come in to it at all.

GR3YFOXXX

You should not be charging VAT if you are not registered.

If you do register and you become a taxable person in the RoI you can submit a claim to HMRC for a repayment of the UK VAT, alternatively you can notify your supplier that you are VAT registered in the RoI then zero rating their supplies.

Businessnoob

Ahh ok.

i was under the assumption that vat had to be calculated either way for year end accounts and was only claimable if you were VAT registered.

Thank you for the clear up.