Calculating VAT (4 Scenarios)

paul7g

Hello,

Can someone advise how VAT works in terms of buying and selling in and outside of Ireland, giving the following demo / scenarios:


Scenario 01 (both activities inside of ireland)

- i design a logo for a company (in Ireland) for €200 + 23% VAT = €246
- i have buy a new mouse (in Ireland) for my laptop for €77 + 23% VAT = €100

How much VAT to i owe at the end of the month?


Scenario 02 (buying activity outside of ireland)

- i design a logo for a company (in Ireland) for €200 + 23% VAT = €246
- i have buy a new mouse (outside of ireland) for my laptop for €77 + 23% VAT = €100

How much VAT to i owe at the end of the month?


Scenario 03 (selling activity outside of ireland)

- i design a logo for a company (in the UK or US) for €200 + 23% VAT = €246
- i have buy a new mouse (in ireland) for my laptop for €77 + 23% VAT = €100

How much VAT to i owe at the end of the month?


Scenario 04 (both activities outside of ireland)

- i design a logo for a company (in the UK or US) for €200 + 23% VAT = €246
- i have buy a new mouse (outside of ireland) for my laptop for €77 + 23% VAT = €100

How much VAT to i owe at the end of the month?

xabi

your mouse would cost 77 + 17.71 = 94.71

You would owe 46 - 17.71

You have the option of not paying VAT when buying outside the state and not charging VAT for services provided outside the state.

paul7g

Thank you Xabi.

Can i ask a few questions:

01 - so am i right in saying that you never pay VAT when buying something outside of Ireland?

02 - if 01 is correct, how do you avoid paying the VAT on a product when you are buying it direct from a website outside of Ireland?

03 - when i am quoting a client outside of Ireland, i don't have to charge VAT in my quote / invoice

04 - if i earned paid more VAT on expenses, compared to the amount of VAT i took in, how does that work?

Thank you once again for your help.

xabi

I'm no expert, but, using your VAT number you can buy business related goods outside the country VAT free. In reality though I've found it easier to pay the VAT and reclaim here. If you pay out more than you take them you'll get a refund.

In point 3, you wouldn't add VAT.

Everything gets recorded on your VAT returns, VAT taken, VAT paid, exemption amounts, etc. the revenue site had loads of info.

paul7g

Ok great, thank you. I'll check it out.