Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Distance Selling VAT

Options
  • 13-05-2019 11:01pm
    #1
    Taiwanmonkey
    Registered Users Posts: 3 ✭


    Hi guys - long time reader, first time poster. Looking for some help with tricky European VAT.

    I am resident in Ireland and currently get my income from freelance work I do and some rental income. I am not registered for VAT in Ireland.

    I want to set up a small new business (by myself) selling books online to customers. I have found a great fulfillment centre in Germany that really suits my needs. Apparently, under the Distance Selling VAT rules, I will need to set up a VAT ID in Germany.

    "If you use a fulfilment centre in Germany to house your stock to supply your private customers, this triggers an immediate need to VAT register in Germany – there is no threshold to exceed. Once registered you will be obligated to file the periodic VAT returns."

    I presume this means I sell the books with the German VAT rate. But my real question is, does this make me VAT registered in Ireland too? Would it have any implications for my current Irish income? I'm nervous about potentially messing up the system I have here in Ireland already by adding VAT to the mix.

    Thanks in advance


Comments

  • Options
    #2
    Da11
    Registered Users Posts: 61 ✭✭Da11


    Taiwanmonkey wrote: »
    Hi guys - long time reader, first time poster. Looking for some help with tricky European VAT.

    I am resident in Ireland and currently get my income from freelance work I do and some rental income. I am not registered for VAT in Ireland.

    I want to set up a small new business (by myself) selling books online to customers. I have found a great fulfillment centre in Germany that really suits my needs. Apparently, under the Distance Selling VAT rules, I will need to set up a VAT ID in Germany.

    "If you use a fulfilment centre in Germany to house your stock to supply your private customers, this triggers an immediate need to VAT register in Germany – there is no threshold to exceed. Once registered you will be obligated to file the periodic VAT returns."

    I presume this means I sell the books with the German VAT rate. But my real question is, does this make me VAT registered in Ireland too? Would it have any implications for my current Irish income? I'm nervous about potentially messing up the system I have here in Ireland already by adding VAT to the mix.

    Thanks in advance

    You will not automatically become a VAT registered here in Ireland and your VAT registration will only apply to your vatable activity in Germany.


  • Options
    #3
    Taiwanmonkey
    Registered Users Posts: 3 ✭Taiwanmonkey


    That's really interesting - so I'd sell the books with German VAT, and I'd be able to get VAT back on purchases related to the business too? I presume I'd have to fill in an annual VAT return form in Germany, but the income part would just be processed with the rest of my Irish income by Rev


  • Options
    #4
    Rulmeq
    Registered Users Posts: 1,060 ✭✭✭Rulmeq


    Most books have 0% VAT in Ireland: https://www.revenue.ie/en/vat/vat-on-goods/printed-matter-and-photography/index.aspx

    So unless you're selling workbooks, or diaries or something, you're going to be 19% more expensive here than you need to be (assuming Germany charges 19% VAT on books, and I'm too lazy to google it).


  • Options
    #5
    Taiwanmonkey
    Registered Users Posts: 3 ✭Taiwanmonkey


    Yes, I know, but the fulfillment centre I want to use offers a really cheap way to access the worldwide market with the books, and books are only 7% there.

    What about claiming back VAT refunds? I presume I am treated like a german business in this sense: meaning I can claim back vat on all purchases from Germany, and also on intra-community purchases from other VAT registered businesses with the Reverse Charge? It's a bit scary registering for VAT in another country!


  • Options
    #6
    Rulmeq
    Registered Users Posts: 1,060 ✭✭✭Rulmeq


    Taiwanmonkey wrote: »
    What about claiming back VAT refunds? I presume I am treated like a german business in this sense: meaning I can claim back vat on all purchases from Germany, and also on intra-community purchases from other VAT registered businesses with the Reverse Charge? It's a bit scary registering for VAT in another country!


    I would have thought the same (intra-eu etc), but if you have to register in Germany then that kind of throws a cat amongst the pigeons. You probably need to talk to your accountant (or find one that specialises in VAT)


  • Advertisement
Advertisement