Uk Vat / Irish Vat

B

brian.mobile

Registered User
Messages
347
Ok, say I have an Irish VAT number and I have an agreement with my UK based supplier that he will send product (sold from my .ie website) direct from his UK factory, on my behalf.

Quetsions:

If my supplier sends product to my:

1) UK customers
or
2) Irish customers

3) How does he bill me in each regard (ie: is there VAT?)?
4) And do I charge VAT at all??

Thanks,

BM
 
My understanding is that an Irish VAT reg company does not charge VAT to a UK reg company and visa versa.
 
If he is billing you then he does not charge VAT.
If you are billing Irish Customers then you charge VAT regardless of wheather they have a number or not..
If you are billing UK customers who do not have a VAT number then you charge VAT.
 
If he is sending goods directly to a third party within the UK (say Northern Ireland) and invoicing you for the goods then he is obliged to charge you VAT at 17.5% on all of these goods.

To ensure that you can reclaim this UK VAT you can register with the non established taxable persons unit (NETPU) with the HM Customs and Excise - I think that office is in Aberdeen. You in turn will charge your UK customers only VAT at 17.5% and remit this amount less the amount paid by you to your UK supplier to the HMCE with your quarterly VAT return.

I hope I have understood your question clearly,

Regards,


Past30
 
Sorry - if he sends goods directly to your Irish Customers then he should not charge you VAT but you should charge your customers Irish VAT of 21%.
 
Hi Past30,
Would you have any more details on the NETPU. Since it is only for non-established persons how do i pay the VAT to HM Customs and as a business can i also offset the VAT element of my UK trading expenses against it.

Is there a limit to the NETPU after which an Irish based business must register a company in the UK for VAT purposes.

Many Thanks
Ciaran
 
Hi Ciaran,


NEPTU's address is

HM Revenue & Customs,
Custom House,
28 Guild Street,
Aberdeen,
AB11 6GY

I have no idea of what the exemption limits are for VAT registration within the UK. We had to register in order to protect our profits on the agency we have from the UK supplier on any transactions we had with our northern irish customers.

We pay the VAT by submitting the return along with a cheque every quarter. We had a sterling account any way so this didn't cause a problem - there is an electronic solution much like ROS but I haven't set it up yet. Their website is www.hmce.co.uk. Give that a try for any further information.

We charge UK VAT on goods shipped directly from our supplier in the UK to Northern Ireland. We remit to the UK HMCE the VAT charged by us less the VAT charged by our supplier, we don't bring any other transactions into the equation. We have bought machinery over the years from UK suppliers who haven't charged us VAT as the goods were shipped directly to us and we were registered here for VAT.

Regards,

Past 30
 
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