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VAT Rates - Drop Shippment

  • 06-01-2013 9:01pm
    #1
    gerskey
    Registered Users, Registered Users 2 Posts: 3 ✭


    Hi all,

    We are a small vat registered company based and registered in Ireland.
    We sell global but we don't stock the products in Ireland.

    Scenario
    Customer based in the UK or another EU country purchase a product from our website - all products are priced with VAT included.
    Since we dont have the products on site but in another country - NON EU and EU - the products are shipped directly to the customer - they aren't shipped to us and then we ship out from Ireland

    - How do i account for the VAT on these?
    - Do we account for the 23% both ways?
    - Are these treated that the products are shipped from Ireland?

    I have searched the Revenue.ie site and i am getting more confused.
    Any help or sites i should visit will be a great help....

    Thanks
    Tagged:


Comments

  • #2
    scwazrh
    Registered Users, Registered Users 2 Posts: 2,797 ✭✭✭scwazrh


    Do you pay vat on the purchase?If so reclaim that and I would account / pay for the vat on the sale.my thinking being that vat is a tax on a financial transaction and you're tax registered in Ireland irrespective of where the products are.


  • #3
    gerskey
    Registered Users, Registered Users 2 Posts: 3 ✭gerskey


    Hi,
    Thanks for your reply.....

    we pay VAT on goods entering the country at 0%- within the EU - goods entering from outside at automatically 23% by customs...but when using drop shippment the goods dont enter Ireland but go from the country of manufacture to purchaser...

    VAT is one complicated area!!!


  • #4
    scwazrh
    Registered Users, Registered Users 2 Posts: 2,797 ✭✭✭scwazrh


    gerskey wrote: »
    Hi,
    Thanks for your reply.....

    we pay VAT on goods entering the country at 0%- within the EU - goods entering from outside at automatically 23% by customs...but when using drop shippment the goods dont enter Ireland but go from the country of manufacture to purchaser...

    VAT is one complicated area!!!

    I would base it on receipts - so your purchase invoice shows 0% vat and your sales receipts shows 23% vat which means you handover the 23% to collector general. To the best of my knowledge the actual product location is irrelevant , it's the financial transaction that is liable to vat . If the amounts involved are large you could look at registering in another country but if your at that level you should get some professional tax advice .


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