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VAT on "exports"

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  • 24-09-2009 2:04pm
    #1
    trad
    Closed Accounts Posts: 2,696 ✭✭✭


    I'm looking at setting up a new business. The business is in the recycling area and there is a charge to the customer to cover transport the recycling facility and the recycling charge.I am familiar with the need for waste collection permits and other legal requirements.

    A main player here at the moment is a Northern Ireland based company who collects the product for export to the UK (Northern Ireland) and does not charge VAT. This puts any Irish competitor at a 21.5% disadvantage pricewise. I understand the VAT element is a paper exercise as the trader will have to pay the VAT to the Collector General but it means a significant reduction in the value of the cheque for waste disposal.

    Having read the guide on the revenue site it appears to me that non established companies in this position are required to registered for VAT. Is this a correct interpetation?
    Tagged:


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    #2
    TaxingTimes
    Registered Users Posts: 145 ✭✭TaxingTimes


    You need to register for VAT if your turnover is over certain limits.

    You should seek professional advice to ascertain if you need to register for VAT.


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    #3
    trad
    Closed Accounts Posts: 2,696 ✭✭✭trad


    I'm aware that I need to register for VAT (already have a VAT number).

    My reading of the VAT guide is that a service provider from NI offering a service within the Republic is obliged to register for Irish VAT, thats what I am trying to clarify.


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    #4
    Mr. Incognito
    Registered Users Posts: 9,798 ✭✭✭Mr. Incognito


    I'm trying to get my head around this one- one of your competitors does not seem to be charging VAT and you want to know why?

    Well, no offence but we can't tell you dude. In general non established service providers are required to register and account for VAT.

    The rate for waste disposal is 13.5%

    http://www.revenue.ie/en/tax/vat/rates/decision-detail-00382.html


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    #5
    trad
    Closed Accounts Posts: 2,696 ✭✭✭trad


    Thanks for the reply Mr. Incognito. My reading of the vat regs is as you say, I was just trying confirm my opinion. Hadn't looked at the VAT category as I assumed it is early days in this project. Permits take 40 working days (8 weeks +) so I'm trying to get my facts and figures together to see if it is viable.

    Lower rate of VAT applies to recycling but the higher 21.5% rate applies to transport
    http://www.revenue.ie/en/tax/vat/rates/decision-detail-02278.html


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