Paying VAT on exported goods

trailbiker

Hi there,

Looking to add ecommerce to an already existing business. The company is already registered for VAT in Ireland.

For sales to individuals (not VAT registered) outside of Ireland what is the situation with the payment of the VAT? ie. Is the VAT on these exports still paid to the Irish Revenue service?

Thanks.

dbran

Hi

It depends on what you are selling, where you are selling it to and how much you are selling.

dbran

whatawaster

trailbiker wrote: »

Hi there,

Looking to add ecommerce to an already existing business. The company is already registered for VAT in Ireland.

For sales to individuals (not VAT registered) outside of Ireland what is the situation with the payment of the VAT? ie. Is the VAT on these exports still paid to the Irish Revenue service?

Thanks.

As I understand it, you charge vat on all sales to other EU countries unless the purchaser provides you with a VAT number

dbran

whatawaster wrote: »

As I understand it, you charge vat on all sales to other EU countries unless the purchaser provides you with a VAT number

No. Its not a simple as that.

dbran

trailbiker

dbran wrote: »

Hi

It depends on what you are selling, where you are selling it to and how much you are selling.

dbran

Selling clothing both domestically and internationally. From what I've read elsewhere, the seem to be different thresholds for sales to each respective country. £70,000 for the UK and once this is reached or exceeded we would have to register for VAT in the UK. Before reaching this threshold though do we pay the VAT to the Irish Revenue for sale to the UK? Is there an up-to-date list of the respective international VAT thresholds available anywhere?

whatawaster wrote: »

As I understand it, you charge vat on all sales to other EU countries unless the purchaser provides you with a VAT number

It's not a wholesale. We would be selling to individuals not businesses.

dbran

If you are not established in the UK and responsible for delivery of the goods to consumers in the UK then it is distance selling and the threshold is £70k. There are different thresholds for each EU country. It is usually either €35k of €70k. Below this threshold you would charge Irish VAT.

If you are not established in the UK and are not responsible for the delivery of the goods to the consumer, then there is no threshold for registration and you must register for UK VAt immediately.

The VAT rate on clothing is either the standard rate or zero rated

If the supply is to outside the EU then there is no VAT provided that you are responsible for deivery of the goods to an address outside the EU. Otherwise Irish VAT may apply.

If you do have to register for UK VAT and you then find yourself regularly in an Irish VAT refund situation, you might also consider applying for a VAT 56a as otherwise you may find that you are getting regular VAT audits from Irish Revenue.

dbran

trailbiker

Thanks dbran for that very detailed response. Do you know if there is a listing somewhere of the EU country VAT thresholds? If not, I've guess that I'll just have to look at their respective revenue service websites.

Thanks again.

nompere

This is the current list:

http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_ec_annexi.pdf

trailbiker

nompere wrote: »

This is the current list:

http://ec.europa.eu/taxation_customs/resources/documents/taxation/vat/traders/vat_community/vat_in_ec_annexi.pdf

Brilliant. Thanks for that.