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Import equipment from UK VAT

  • 06-06-2017 10:37am
    #1
    businessdit
    Registered Users, Registered Users 2 Posts: 173 ✭✭


    Hi Folks,

    I have equipment that my company is planning to import from the UK worth about £20,000 + VAT.

    How does the VAT situation work here?

    Do I provide the supplier with my VAT number and ask that they don't charge VAT? Is there a risk that I might be double charged for the VAT here in Ireland?

    Thanks
    Alan


Comments

  • #2
    vandriver
    Registered Users, Registered Users 2 Posts: 3,474 ✭✭✭vandriver


    Exactly,you supply your vat number and ask that the goods be zero rated for vat.
    From HMRC:

    Sales to someone who is VAT registered in another EU country
    If you’re sending goods to someone who is VAT registered in the destination EU country, you can zero-rate the supply for VAT purposes, if:

    the goods are sent out of the UK to another EU country
    whoever you’re sending them to is VAT registered in another EU country
    you get their VAT registration number, including the 2 letter country code, and show it on your sales invoice
    you’ve got ‘evidence of removal’ showing that the goods have gone out of the UK
    you dispatch the goods and get evidence of removal within 3 months
    To account for the VAT on zero-rated sales to another EU country, include the value of the goods and services in your VAT Return.

    Your ‘evidence of removal’ will include a number of things like:

    customer orders
    correspondence with customers
    sales invoices
    packing lists
    invoices from hauliers
    bank statements
    consignment notes showing the goods have been received in another EU country
    and must show:

    your business details
    your customer’s details
    a detailed description of the goods and their value
    the method of transport and route
    where the goods are going to
    Evidence must be kept for 6 years. HM Revenue and Customs (HMRC) can ask to see it and if they think it is unsatisfactory you may have to pay VAT on the goods or services sold. If you can’t get this evidence in time you must account for VAT on your return.

    You can use an online interactive tool to check if a VAT number for an EU country is valid. To confirm the details you’ve been given by a new customer, you should contact the VAT Helpline.


  • #3
    gerrybbadd
    Registered Users, Registered Users 2 Posts: 10,301 ✭✭✭✭gerrybbadd


    You won't be charged the UK rate of VAT if you provide a valid VAT number.

    But you will be liable to pay VAT at the Irish rate. You must account for the VAT due, on the "Reverse Charge" basis. That being said, you can also claim an input for this VAT, as long as it's related to your business or trade. So for example, if it cost €20,000, VAT at 23% would be €4,600

    Your VAT 3 would look like this:

    T1: €4,600
    T2: €4,600
    T3: 0
    T4: 0


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