Do I have to pay VAT to foreign Wholesale suppliers when under the €75000 treshold

John Pottery

I run a business (partnership) in Ireland that has been doing over €75000 annual turnover but now is going under that figure.
Soon I will opt out of the VAT system and loose my VAT registration as that is not needed anymore when having a turnover of less than €75000

My first question now is : Do we have to pay VAT over goods from wholesale suppliers abroad once we lose our VAT registration here in Ireland?

My second question is. If we have to pay VAT but the supplier abroad doesn't charge or forgets to charge VAT (as we used to have a VAT registration)..what happens if the taxman here finds out or what happens if the taxman abroad finds out? Who would get into trouble...us or the company that forgot to charge VAT?

I have been told by a colleague that if our VAT registration number does not show up on the invoices, that the company abroad does not check for VAT registration, and that it would be no problem for us continuing to not pay VAT over the goods from these wholesalers even though we would not have a VAT registration ourselves in the near future.


Many thanks for any reply

dbran

John Pottery wrote: »

I run a business (partnership) in Ireland that has been doing over €75000 annual turnover but now is going under that figure.
Soon I will opt out of the VAT system and loose my VAT registration as that is not needed anymore when having a turnover of less than €75000

My first question now is : Do we have to pay VAT over goods from wholesale suppliers abroad once we lose our VAT registration here in Ireland?

My second question is. If we have to pay VAT but the supplier abroad doesn't charge or forgets to charge VAT (as we used to have a VAT registration)..what happens if the taxman here finds out or what happens if the taxman abroad finds out? Who would get into trouble...us or the company that forgot to charge VAT?

I have been told by a colleague that if our VAT registration number does not show up on the invoices, that the company abroad does not check for VAT registration, and that it would be no problem for us continuing to not pay VAT over the goods from these wholesalers even though we would not have a VAT registration ourselves in the near future.


Many thanks for any reply

Yes if the total annual inter community acquisitions is over 41k per year. So you will still have to pay over the equivalent Irish VAT at the Irish rate.

If the taxman here finds out you may end up writing a big cheque, they look out for this at a revenue inspection. The supplier will also be writing a cheque if UK VAT man finds out also.

Never rely on "pub talk" when it comes to tax advice.

dbran

Synode

dbran wrote: »

Yes if the total annual inter community acquisitions is over 41k per year

Why if over €41k? Why not if less than that figure?

Surely he'll be paying foreign VAT

dbran

Synode wrote: »

Why if over €41k? Why not if less than that figure?

Surely he'll be paying foreign VAT

Vat registration thresholds are here.

You might note the ICA threshold.

http://www.revenue.ie/en/tax/vat/guide/registration.html#section2

Dbran

Synode

I see. If EU purchases > €41k he's obliged to keep his Irish VAT number. If not and he ceases to be VAT registered, he'll be paying the VAT of the other country

dbran

Yes thats it. He is obliged to keep his VAT number for the purpose of returning the VAT on the ICA alone.

Kind Regards


Dbran