VAT charged by NI regged company

[Alan Dodd]

Hello AskAboutMoney!

Can you help me with this?

I run a small ROI regged business, a limited company, and we've always been registered and completed VAT returns.

I buy a lot of stuff from a large non EU business. A few years ago, they opened a depot in Ulster. They have no presence in the Republic.

I noticed they began charging VAT.

My understanding of the correct accounting for the VAT is: they should not charge us VAT as we have a VAT number, and they are based in the EU with a VAT number, in a different jurisdiction to us.

I talked with the rep from their company, and they now have a system so that we don't get charged the VAT.

But - what happens to the VAT that they did charge over the last while?

My understanding of the correct treatment is:

Rather then us claiming the VAT back of the ROI Irish tax authorities, that the non EU business company should refund the VAT, and then they in turn should claim a credit back of the NI Tax authority, as they would have overpaid.

Simple question to you financial whizzes out there: is this correct?

 

[Joe_90]

Ya I'd go with them issuing credit notes for the invoices with VAT and then invoicing you at zero VAT.

You can't claim UK VAT from the Irish Collector General, you would have to go through the MOSS system and you might not get it back as it was incorrectly charged.

 

[Alan Dodd]

Thanks Joe for that!