Ecommerce Shop - Vat Rates to charge customers

ambilight

Hi,
I'm intending on opening an e-commerce store in Ireland supplying goods online. Are the Vat rates I've listed below the correct way to go about charging VAT?

• Selling outside the EU: No Vat regardless of whether it's a business or consumer.
• Selling in EU:
  • If VAT registered trader, B2B -> No Vat
  • If B2C -> Vat at Irish rate unless I sell over a certain threshold in that country
• Selling in Ireland -> Irish Vat to both B2B & B2C

Cheers.

Peterdalkey

Pretty much but you do need to get a valid VAT number for each and every EU B2b non VAT sale, check it and record it! You can check them here http://ec.europa.eu/taxation_customs/vies/

ambilight

Thanks Peter for clarifying that. We don't expect many/if any B2B transactions but just want to be prepared.

When processing a B2B order, Is it better to either:

1. automate the check against the EU Database you mentioned and automatically deduct the VAT (0% VAT rate) and then process the order.
2. process the order (including standard Irish VAT) and then refund the VAT to the business customer.

Thanks.

Peterdalkey

Definitely not option 2!! If there is no volume manual check will suffice.

Cheers