VAT on exports to EU

Z

zag

Guest
Can someone clarify something for me please ?

We are exporting a piece of equipment to another EU country. I understood (from advice elsewhere) that no VAT was chargeable on this transaction if we had/quoted the VAT number of the recipient.

Is this correct ?

I have input the recipients VAT number into TAS and generated a sales order, but TAS doesn't bother printing this detail on the invoice.

Is this because you don't need to actually quote the recipients VAT number on the invoice or because TAS forgot to implement it ?

Cheers,

z
 
I think the law was changed at European level at the start of April. If you export to another EU country, you have to charge VAT and your buyer claims the VAT back from the Irish Revenue.

I believe it was brought in because EU countries felt they were losing too much revenue from internet sales. If you buy online now from a EU country, VAT is usually added.

Sluice
 
Is this true? If so, this is the first I have heard of it.
 
For what it's worth I bought a DVD player from Amazon.co.uk recently and they added 21% VAT (on the combined item and delivery charges) which is the relevant Irish rate. UK VAT is 17.5% on most items as far as I know with a discounted rate of 5% for some items. This was a personal as opposed to business purchase by the way.
 
Nothing has changed for buyers who are registered for VAT. If they inform the seller of the their VAT number, then the seller does not charge VAT.

However, I have been charged VAT on goods bought over the internet from other European countries recently. I don't know when it started to happen though.

Brendan
 
I'm not an accountant whereas Brendan and Tommy are but...

I've just set up the Irish branch of a UK company. The UK company was recently advised by the UK Inland Revenue to charge VAT on exports. They asked for clarification from the Inland Revenue but are still waiting a reply. It caused a lot of problems with my VAT-registered Irish customers until I could start issuing euro invoices.

Sluice
 
Hi sluice

The Inland Revenue are wrong. Tommy and I are right. Whew!
One up for the accountants against the Revenue.

The first item up on Google with the following search words:

Vat Exports with EU registered customers

[broken link removed]
 
Hi Brendan,
Thanks for the link. It'll be very interesting to see what my finance director makes of this. She's ACCA-qualified and very, very clever.

The UK company were in quite a tizzy for a few weeks. Lots of frantic phone calls and credit notes etc.

Sluice
 
Hmm,

I take it from this -

"Invoicing

Your customer's VAT identification number including the 2 letter country code prefix must be shown on your VAT sales invoice. However, as with all intra-EC supplies made during May 2004, invoices to customers in the new Member States may be issued up the 15 June 2004 at the latest."

- that the fact that TAS has the VAT details in the VAT field, but doesn't bother printing it on the invoice is because of an error or omission? Or does someone else out there have TAS printing VAT numbers on invoices ?

z
 
I think I'm right on this:

If an Irish company (or VAT registered entity) is selling to a non-VAT registered consumer in an EU country, then it has to charge VAT on the invoice. That's why Amazon will charge VAT on sales from UK into Ireland.

If the sale is not to an end user, say to a VAT-registered company which will use the product in its production process, then it is a zero-rated export.
 
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