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If you buy stock in from the UK, how to you handle VAT?

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  • 10-04-2013 8:33am
    #1
    Woody_FX
    Registered Users Posts: 215 ✭✭


    Hello guys,

    I am about to order a lot of stock in from UK distributors for my business, and I'm lost how to approach them about not charging me VAT, since I cannot recover this VAT since I'm an Irish company.

    Can anybody advise me about how this issue is usually handled between Irish companies and UK distributors?

    Many Thanks,
    -W


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    #2
    stcstc
    Registered Users Posts: 2,262 ✭✭✭stcstc


    if your VAT registered

    as its an export from another eu country they dont charge you vat


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    #3
    rainbowdash
    Closed Accounts Posts: 878 ✭✭✭rainbowdash


    Woody_FX wrote: »
    Hello guys,

    I am about to order a lot of stock in from UK distributors for my business, and I'm lost how to approach them about not charging me VAT, since I cannot recover this VAT since I'm an Irish company.

    Can anybody advise me about how this issue is usually handled between Irish companies and UK distributors?

    Many Thanks,
    -W

    Just give them your VAT number and you don't pay VAT.

    Then you just charge 23% here as normal and hand it to revenue.


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    #4
    nompere
    Registered Users Posts: 1,678 ✭✭✭nompere


    Don't forget that it is essential for you to charge yourself Irish VAT on the cost of the imported goods, and to recover that VAT. Both parts of that transaction go on the same VAT return, so there's no actual cost to you, but Revenue can and do charge penalties on the VAT not paid to them if they discover it on an audit. It's treated as filing an incorrect return.

    You would otherwise be relying on the "no loss of Revenue" part of Revenue audit, and it doesn't always apply.


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    #5
    DubTony
    Registered Users Posts: 3,269 ✭✭✭DubTony


    nompere wrote: »
    Don't forget that it is essential for you to charge yourself Irish VAT on the cost of the imported goods, and to recover that VAT. Both parts of that transaction go on the same VAT return, so there's no actual cost to you, but Revenue can and do charge penalties on the VAT not paid to them if they discover it on an audit. It's treated as filing an incorrect return.

    Can you explain more about this? I assumed that the area on the vat return that highlights purchases from other EU countries would cover it.


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    #6
    nompere
    Registered Users Posts: 1,678 ✭✭✭nompere


    DubTony wrote: »
    Can you explain more about this? I assumed that the area on the vat return that highlights purchases from other EU countries would cover it.

    http://www.revenue.ie/en/tax/vat/vat-international-transactions-foreign-traders.html

    It's mostly in paragraph 2. Read paragraphs 3 and 4 as well.


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