VAT on Imports Intra EU

deepriver wrote: »

I am think about importing a product (clothing) from Spain to sell over the summer period (online, festivals etc).

I am trying to figure out the tax & VAT implications and the best way of getting the product into the country.

The first order / pallet will have a value of about 1300e. When I sell the product online I will charge the full VAT amount of 21%.

I dont expect the turnover for the year to exceed the revenue threshold for VAT registration.

However should I register for VAT in order to import the products and do I need a VAT number at customs / border or should the products sail through?

Do I need a business name to get the product through customs.

Any feedback welcome

As Spain is in the EU, they operate VAT, same as Ireland.

Customs/Duties - not operate within EU on clothing products (e.g. of types of goods with duty on them - alcohol, tobacco, fuel)

If you VAT reg and do business with this Spanish Co (assuing VAT reg) then they do not charge you VAT, you self account for it - called Reverse Charge

You can easily set up a business name with the CRO - can do it online cheaply - this is a Sole Trader. A company takes a bit more work and as you can imagine other obligations arise - annual compliance

Threshold for VAT Reg - €41,000 for persons making intra-Community acquisitions

Also if VAT Reg, you can claim VAT incurred on costs related to the business - e.g. Telephone, Stationary, Advertising, Website