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26-02-2021, 12:40   #1
rosietee
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VAT on sales to UK

Can someone clarify what is the current situation for invoicing a customer in the UK. Do I need to charge them IE VAT?

I would be very grateful if someone could just give me a simple answer. Its very hard to find an answer on this on revenue.ie or HMRC.
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26-02-2021, 13:43   #2
DmanDmythDledge
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Different rules apply to provision of goods or services and then may differ depending on the type of goods/services provided. Its not overly complex for any decent tax advisor but there's no straightforward answer to the question
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26-02-2021, 13:43   #3
Geuze
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Surely there was never any VAT on exports?

Anyways, here you go:

https://www.revenue.ie/en/customs-tr...20to%20exports.
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26-02-2021, 13:49   #4
DmanDmythDledge
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Well the link you sent says there is
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27-02-2021, 13:02   #5
RUDOLF289
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Quote:
Originally Posted by DmanDmythDledge View Post
Well the link you sent says there is
For good order, I am copying the information from the link in this thread;

*****
Exporting to Great Britain
For Value-Added Tax (VAT) purposes, exports are goods directly dispatched to a destination outside the European Union (EU) VAT area. This now includes Great Britain.

The distance selling threshold no longer applies to sales made by businesses in Ireland to consumers in GB.

The zero rate of VAT applies to exports. You will find further information in VAT and Exports.

You must ensure that the goods have left the EU and have evidence of export.

You will need to declare each export to Revenue using a customs export declaration. The declaration is submitted electronically using Revenue’s Automated Entry Processing (AEP) System.

Licences are required to export certain types of goods from the EU. You may be required to show Revenue that you have a licence for exporting goods.
****

Can you please explain where in the above text it states that Irish VAT applies on exports to the UK?

Cheers,
Rudolf289
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28-02-2021, 20:50   #6
DmanDmythDledge
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Hi Rudolf, it says the zero rate of VAT applies, which is different to no VAT
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01-03-2021, 02:12   #7
RUDOLF289
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Quote:
Originally Posted by DmanDmythDledge View Post
Hi Rudolf, it says the zero rate of VAT applies, which is different to no VAT
So what is the difference in LSD between no VAT and Zero VAT? Taking a value of 1000.00 how much is "NO VAT" and "ZERO VAT" Can you do the maths?

And the question was; "Does Irish VAT apply on exports to the UK?" And the answer is clearly no!

Last edited by RUDOLF289; 01-03-2021 at 02:16.
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01-03-2021, 08:27   #8
DmanDmythDledge
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It's not about the maths, it effects multiple things like requiring to be registered for VAT (once over thresholds), submitting returns, requirement to self account for VAT on ICAs, ability to reclaim VAT incurred on purchases.

Anyone who doesn't know the difference between zero VAT and no VAT shouldn't be posting advice on this forum
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01-03-2021, 09:23   #9
RUDOLF289
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Quote:
Originally Posted by DmanDmythDledge View Post
It's not about the maths, it effects multiple things like requiring to be registered for VAT (once over thresholds), submitting returns, requirement to self account for VAT on ICAs, ability to reclaim VAT incurred on purchases.

Anyone who doesn't know the difference between zero VAT and no VAT shouldn't be posting advice on this forum
I think you may have misinterpreted the questions and the answers.

I believe the original question posed asked if Irish VAT applies to exports to the UK.

Clearly the answer is no, there is no VAT applied on exports to a 3rd country. So, the ZERO VAT rate applies.

Now, if you want to address the issue of me being qualified to offer advice on this forum, .......... I have somewhat of a track record advising members of Boards.ie on Logistics and Customs issues. Sofar, haven't received any complaints.
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01-03-2021, 10:24   #10
DmanDmythDledge
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Absolutely agree it's slightly off topic re the OP but I was replying to another post in the thread, which is still very relevant for some of the matters outlined. Its actually beneficial that exports are subject to VAT (as a general rule) as it should not impact on VAT recoverability on inputs.

I don't have a clue about customs so don't try and pretend I do and stay well clear of giving customs and duties advice. Fair play to you if you regularly post and advice over on that forum.
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01-03-2021, 10:31   #11
RUDOLF289
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Quote:
Originally Posted by DmanDmythDledge View Post
Absolutely agree it's slightly off topic re the OP but I was replying to another post in the thread, which is still very relevant for some of the matters outlined. Its actually beneficial that exports are subject to VAT (as a general rule) as it should not impact on VAT recoverability on inputs.

I don't have a clue about customs so don't try and pretend I do and stay well clear of giving customs and duties advice. Fair play to you if you regularly post and advice over on that forum.
Not sure if I follow your thinking.

If goods exported and invoiced to a client in a 3rd country (which the UK now is), how does the importer in the UK recover VAT paid to the Irish exporter? Never mind that the importer in the UK also has to pay VAT on his import side?
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01-03-2021, 10:43   #12
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The VAT rate is 0%, so the UK customer will not have paid any Irish VAT.
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01-03-2021, 10:55   #13
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Quote:
Originally Posted by DmanDmythDledge View Post
The VAT rate is 0%, so the UK customer will not have paid any Irish VAT.
No VAT is not the same as an exempt supply, you're dancing on the head of a semantic pin here to be fair. I certainly wouldn't assume a supply is an exempt one just because there's "no VAT" on it. A person who's running a business and used to charging VAT on their supplies is certainly unlikely to reach that conclusion from the response they got, particularly since they were given a link that clearly removes any potential ambiguity...
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