VAT on Sales in the other EU country

forex

Dear Sir/Madam,

I am starting a new business and I will appreciate it very much if you could clarify VAT related questions as I could not find the right answers on the revenue web site.
1) company is registered in Ireland
2) I m going to import products from a non-EU country and sell it in one of the EU countries directly (products will not enter Ireland).
3) I would like to organize delivery from door-to-door, so customer will make a payment only once, which means that the price would include product cost, delivery, Customs duties and VAT. The duties and VAT I will have to pay at the customs of the destination country.

Questions:
1) Do I have to be registered for VAT if not do I have to apply for VAT exemption by filling in 13B form?
2) How this is going to work from the documentation point of view, e.g. I issue an invoice to the buyer which will also include VAT mount, pass this VAT amount to a destination country customs, e.g. Germany. And what is going to happen in Ireland?
As I understand because of products do not enter IE, I don't pay VAT locally, but pay it in the destination country.
3) what documents do I have to provide to revenue to make it right ?

Thank you.

Alan Shore

Fairly complex, are your customers registered for VAT? Or more correctly are your customers businesses?

Immy

You need to seek advice for this. Not a straight forward issue.

forex

Alan Shore wrote: »

Fairly complex, are your customers registered for VAT? Or more correctly are your customers businesses?

In most of the cases my customers will be Businesses, but in few cases Private persons. Also in most of the cases they will be registered for VAT.

I sent 3 emails to revenue to different email addresses related to VAT, but so far no reply.

Alan Shore

What does your accountant say?

forex

Alan Shore wrote: »

What does your accountant say?

She is also looking for an answer.

dbran

Hi

There is not enough information to give a full answer.

There could be a requirement to register for VAT in multiple EU countries depending on the facts.

You need to talk to your accountant re the above.

dbran

forex

dbran wrote: »

Hi
There is not enough information to give a full answer.

Hi, I will appreciate it very much if you could clarify what information do you need ?

forex

Hi, are there any other thoughts ?

RUDOLF289

forex wrote: »

Hi, are there any other thoughts ?

Coming to this threat late, apologies;

This is what you originally posted ;

1) company is registered in Ireland
2) I m going to import products from a non-EU country and sell it in one of the EU countries directly (products will not enter Ireland).
3) I would like to organize delivery from door-to-door, so customer will make a payment only once, which means that the price would include product cost, delivery, Customs duties and VAT. The duties and VAT I will have to pay at the customs of the destination country.

Questions:
1) Do I have to be registered for VAT if not do I have to apply for VAT exemption by filling in 13B form?
2) How this is going to work from the documentation point of view, e.g. I issue an invoice to the buyer which will also include VAT mount, pass this VAT amount to a destination country customs, e.g. Germany. And what is going to happen in Ireland?
As I understand because of products do not enter IE, I don't pay VAT locally, but pay it in the destination country.
3) what documents do I have to provide to revenue to make it right ?

Thank you.


In response, this would work best if the goods moved by seafreight and if your clients are VAT registered in their own country.

1) You can clear the goods in another EU member state, before delivering them to the final client, using a fiscal representative, using a socalled A-B-C transaction.
2) For instance, you take an order from a client in Germany. You ship it from China to Rotterdam.
3) It is cleared in Rotterdam on your VAT registration
4) You account for the transaction in your VAT return as an Intra EU Acquisition.
5) You file an Intrastat Return on the import side
6) The goods are supplied to your client in Germany
7) You accoun for the transaction in your VAT return, your Intrastat return and you also file a VIES return

NB : It is important that the goods arrive in another EU country before they are delivered to the final client. Rotterdam would be a very central point from where infrastructure for distribution to other EU countries is very well developed.

There are a couple of aspects to consider ;
A) If your EU clients are VAT registered businesses, you can invoice from Ireland and apply a zero rate of VAT
If your UK clients are private individuals they may be liable for Irish or EU member country VAT depending on your level of sales. (you probably need to have a look on the revenue website for the topic Distance sales; see the following links ;

http://www.revenue.ie/en/tax/vat/lea...-sales-eu.html
http://www.revenue.ie/en/tax/vat/gui...-supplies.html

Needless to say, you would need to utilise the services of an agent that understands the process and can arrange the transportation from China to the UK in order to utilise the above described process.

Hope this helps

Cheers,
Rudolf289