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VAT and online sales

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  • 28-06-2017 6:09am
    #1
    Hippicrit
    Registered Users Posts: 7 ✭


    I am currently selling records online on a 3rd party site called discogs. Do i have to pay VAT on online sales? The vasy majority of sales are to the uk and europe. some are to Ireland.
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    #2
    Peregrinus
    Registered Users Posts: 26,356 ✭✭✭✭Peregrinus


    Hippicrit wrote: »
    I am currently selling records online on a 3rd party site called discogs. Do i have to pay VAT on online sales? The vasy majority of sales are to the uk and europe. some are to Ireland.
    Depends on your turnover. If you sell or expect to sell €75,000 of product over 12 months, you're obliged to register for VAT, charge VAT on all your sales within the EU, and account for it to the Revenue Commissioners. It makes no difference whether the sales are online or not, and it makes no difference whether they are sales to Ireland or to other EU countries.

    If you have sales to non-EU customers you don't have to charge VAT on those. But those sales still count towards the €75,000 to determine whether you're obliged to register for VAT.

    If your turnover is less than €75,000 you're not obliged to register or charge VAT, but you may do so voluntarily, and in some circumstances it may be to your advantage - e.g. if your business involves you paying large amounts of VAT on purchases, and you want to reclaim that, or if your customers are mostly commercial, and prefer to deal with a VAT-registered supplier so that they can claim VAT input credits. My guess is that you wouldn't be in that situation, though.


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    #3
    Hippicrit
    Registered Users Posts: 7 ✭Hippicrit


    Hi
    Thanks for the very helpful reply.

    I would also like to know is there a relief on VAT for 2nd hand records. I've heard their is VAT relief on certain collectables.
    Would 2nd hand records qualify as collectibles?

    Thanks!


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    #4
    Peregrinus
    Registered Users Posts: 26,356 ✭✭✭✭Peregrinus


    You're thinking of the margin scheme. Full details here. It's quite narrowly circumscribed and - to cut to the chase - the kind of goods that are covered are described in schedules at the back of the document. It doesn't look as though second-hand records would be included.


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    #5
    Hippicrit
    Registered Users Posts: 7 ✭Hippicrit


    Hi, Thanks again, youve been very helpful.


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    #6
    gerrybbadd
    Registered Users Posts: 10,301 ✭✭✭✭gerrybbadd


    Am i right in saying that this is like dropshipping?

    If so, you hold no stock yourself, and are selling on behalf of the parent company. If so, you are providing a service, not the goods, so your thresholds are €37, 500


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