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Selling to business customers ex VAT

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  • 23-04-2013 1:04pm
    #1
    e0in1987
    Registered Users Posts: 1 ✭


    Hey everyone,


    In my business I'm obligated to charge VAT on everything I sell. My business is pretty young and recently I got a number of business clients who purchase from me in the course of business.

    Most are content to purchase normally and then reclaim the VAT later. However, I've got several who wish to purchase from me ex VAT.

    Does anyone know where I might find the rules governing this?

    Thanks


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    #2
    Quebec Delta Mike
    Registered Users Posts: 119 ✭✭Quebec Delta Mike


    Hi,

    Go to http://www.revenue.ie/en/business/index.html.
    You should know how to operate the vat accounting system properly.

    <Mod Edit> - No advise on "black market" here please

    QDM.


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


    e0in1987 wrote: »

    Most are content to purchase normally and then reclaim the VAT later. However, I've got several who wish to purchase from me ex VAT.

    Does anyone know where I might find the rules governing this?

    Thanks

    AFAIK there's no way to sell without charging vat (Although there might be something when dealing with exempted charities). It's interesting that you use the phrase "ex vat". This is normally used when quoting a price or setting out a price list where prices are quoted without vat but the buyer understands and expects that vat will be added.
    If you've been asked to quote "ex vat" it may be that your customer wants the vat free price for margin calculation etc. if you're quoting vat registered customers (most businesses) a price that includes vat, you're doing it wrong. When dealing in a B2B situation, its generally safe to assume that the customer is registered and so, a vat inclusive price adds confusion, as they are used to being quoted prices ex vat.
    Simple rule would be to always quote ex vat to business and incl. vat to consumers.


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    #4
    TheCostumeShop.ie: Ronan
    Company Representative Posts: 1,740 ✭✭✭TheCostumeShop.ie: Ronan


    It sounds like your customers are from a different EU country to you and are registered for vat in their own country (or are outside the EU so they pay import taxes on entry and get charged zero vat). In this case, once they supply you with their valid non - irish VAT number, you can make it an Intra EU transaction and charge zero VAT.

    You can verify their VAT numbers here to avoid chancers: http://ec.europa.eu/taxation_customs/vies/


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    #5
    smeharg
    Registered Users Posts: 300 ✭✭smeharg


    TheCostumeShop.ie: Ronan wrote: »
    It sounds like your customers are from a different EU country to you and are registered for vat in their own country (or are outside the EU so they pay import taxes on entry and get charged zero vat). In this case, once they supply you with their valid non - irish VAT number, you can make it an Intra EU transaction and charge zero VAT.

    You can verify their VAT numbers here to avoid chancers: http://ec.europa.eu/taxation_customs/vies/

    ...or they could have what was VAT 13A exemption (now Section 56). They provide you with a copy of their VAT exemption certificate and you can charge them VAT at the zero rate.

    The rules/requirements can be found here http://www.revenue.ie/en/tax/vat/leaflets/zero-rating.html (see "Purchases within the State)


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