Registered for VAT, able to claim VAT back on good bought abroad.

r1_2010

Hi Guys,

My sister has started her own company in the last year and a half.
First 6 months were very tough for her financially but finally she is seeing light at the end of the tunnell and the business is really starting to grow Mentioning this more out of pride for her than anything else...

Anyway... back to my question...

She works in television/production and needs to buy some camera equipment, lights, etc...
She is VAT registered and charges VAT to her customers and my understanding can all re-claim VAT.

She shopped around and the Irish price of the goods that she wishes to buy (even after reclaiming the VAT back from revenue would be 200-300 euro more than British UK price (including British VAT !). Ok it's a no brainer in such circumstance to buy from the UK retailer unfortunately as the Irish retailer is reluctant to try and price match.
However.... if she keeps the receipts, is she still eligible to re-claim the VAT from the UK as she is Irish registered for VAT??
If anybody has done this before, how difficult is this, are there many hoops to jump through and how long do you need to wait for the rebate ?

Thanks,

r1_2010

barneystinson

If she's Irish VAT registered then she supplies her VAT reg number to her UK supplier and they do not charge her UK VAT.

She then accounts for Irish VAT - i.e. she charges the VAT to herself by including it with her VAT on Sales (at box T1), and simultaneously claims it back in her VAT on Purchases (at box T2).

She also then includes the net value of the goods (i.e. the amount she was charged without VAT) acquired from other EU countries in Box E2.