Intra-EU VAT and E-commerce Questions

Fuddyduddy

Hi, I hope someone is able to assist me with a question I have regarding VAT on B2C sales from one EU member state to another.

I understand there are various thresholds that determine whether you charge your home VAT or the VAT rate of the destination country.

My question though is how this works for a business that isn't yet VAT registered.

For example if an unregistered business were to sell a product to an Irish customer, by law they cannot charge VAT, and so the consumer isn't charged any. However if the unregistered business were to sell this product online to a customer in Spain, by law they cannot charge VAT(?) and therefore the consumer doesn't pay any? Or because its crossing a boarder, does the shipping carrier bill the final consumer the VAT before they release the goods to them, even if they are in EU and below threshold for the exported to charge any VAT?

I've literally asked accountants who don't know the answer to this and it seems like the most basic thing. Nothing on Revenue, nothing online. Please help!

sharky86

Literally everything about this on Revenues site. Here’s the link.

https://www.revenue.ie/en/vat/vat-on-goods/when-is-vat-charged-on-goods/index.aspx

If not registered for Vat, then you don’t charge vat.

place of supply and vat thresholds for that jurisdiction will determine if you need to register for vat.

1- you need to determine your place of supply

2 - you need to check the theresholds for the each location your suppling to

3 - register for Vat in that location if required and begin to charge vat based on the locations rates

4 - file your returns.

Fuddyduddy

https://www.boards.ie/discussion/comment/118556619#Comment_118556619

I can't find where it says whether the final consumer of another EU country has to pay VAT on a purchase where VAT wasn't charged by the seller in another EU state, which is what my question was.

sharky86

It does when you read through it. But feel free to share what your selling and to where specifically and I’ll find the link for you

Edit: assuming you are asking about distance sales then the info is here

https://www.revenue.ie/en/tax-professionals/tdm/value-added-tax/Part04-place-of-taxable-transactions-place-of-supply/distance-sales/vat-and-intra-community-distance-sales-of-goods.pdf

which is linked to from the above link.

10k or more to all EU countries and you will have to register for vat in those jurisdictions or union OSS.

below 10k and you won’t have to register and charge VAT. You will already have paid vat on your purchases

Fuddyduddy

https://www.boards.ie/discussion/comment/118556966#Comment_118556966

Thanks, I read through this yesterday, it doesn't specify the answer to my question:

"Where the place of supply threshold is not exceeded An Irish supplier who makes intra-Community distance sales to certain customers in other Member States is liable to Irish VAT on such sales until the place of supply threshold of €10,000 is exceeded. This VAT should be included in the T1 box in their VAT 3 return. If the threshold is not exceeded, the supplier may opt to register and account for VAT in the Member State to which the distance sales are made. The supplier should contact the authorities of the Member State concerned, who will provide details of the requirements for registration."

If I sell X product to a customer in France, obviously I can't charge VAT as I'm not registered, so I'm presuming the customer isn't charged VAT by upon receival by the carrier on behalf of the tax agency either? For instance if I import something from the US, the shipping carrier will usually bill me for the VAT and duty on behalf of customs/revenue. So I want to know will the French customer have to pay the VAT upon arrival independently as I cannot be the one to charge it or do they not pay any VAT on the product they imported from Ireland.

ohnonotgmail

https://www.boards.ie/discussion/comment/118557958#Comment_118557958

there are no intra-EU customs checks for vat or duty.

sharky86

Your comparing apples to oranges, the US transaction is an import while the French transaction is inter community. The French individual will not pay VAT in the situation above

Fuddyduddy

https://www.boards.ie/discussion/comment/118557992#Comment_118557992

Thank you!

Fuddyduddy

https://www.boards.ie/discussion/comment/118558007#Comment_118558007

Thank you! I appreciate the assistance.

sharky86

It can be a head wreak I know