Vat on uk purchases

IpreDictDeatH

Hey just wondering if anyone has any insight into my problem. I am a retail trader and i want to purchase from a UK based company. As far as i know this is an intra-community trade, or something to that affect, so it comes to me zero rated. I was wondering, as i am liable for Vat at the irish rate how do i deal with this in my books? Do i add vat at the irish rate into my book keeping system, and also when i do vat returns? Finding this very confusing.

Regards.

jimmii

Sounds like you are making it a lot more complicated than it needs to be! Just show the wholesale order amount in your books with 0% VAT and then file your VAT returns after selling the same as you would normally. In my system it auto enters the 23% rate on orders so I just edit it to 0%.

IpreDictDeatH

But im liable for Irish Vat on this am i not? So i'm adding vat on retail price, accounting for it in vat return,no?

Yea im pretty sure im making it more complicated than it is, penny will drop im sure.

srsly78

You have to collect the 23% for the taxman, it just happens to temporarily rest in your bank account before you pass it along in your quarterly (or monthly) vat return.

IpreDictDeatH

So i dont really have to do anything different then? Just collect vat as usual, and then account for it in return? My accountant does my returns so i should just let him know its an EU trade i take it.

Starting to become clearer, thanks.

bcorden

The only one other complication you might encounter is Intrastat but you have to purchase over a certain threshold before it become applicable - see http://www.revenue.ie/en/customs/businesses/vies-intrastat.html

jimmii

Yep just collect it as usual and file it as usual too. Its all the same VAT at the end of the day!

jimmii

bcorden wrote: »

The only one other complication you might encounter is Intrastat but you have to purchase over a certain threshold before it become applicable - see http://www.revenue.ie/en/customs/businesses/vies-intrastat.html

If there is a threshold its certainly something I have never encountered. I've ordered as small as £35 and its never been a problem.

srsly78

In my personal experience if you need to fill out VIES forms (for intrastat) you will get a phone call from the vat office asking why you have not done so

jimmii

srsly78 wrote: »

In my personal experience if you need to fill out VIES forms (for intrastat) you will get a phone call from the vat office asking why you have not done so

Via ROS or a different form?

IpreDictDeatH

Thanks for the help folks.

bcorden

Sorry should have clarified that the Intrastat threshold is quite large at over €191,000 worth of imports. So it's only relevant if your bringing in quite a bit of stuff.

srsly78

If you are exporting the threshold is a lot lower than that, not sure exactly how much tho. Is an easy return to make via ROS.