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BREXIT VAT IMPLICATIONS

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  • 04-02-2021 2:48pm
    #1
    Anndoe
    Registered Users Posts: 2 ✭


    We have recently set up a small ecommerce business and our aim is to sell products to customers in Ireland and the UK.

    We are unsure of our tax obligations in the UK post brexit. Are we obliged to pay VAT in the UK on our sales there? Or do we pay VAT in Ireland on sales to the UK? Each sales will be between €10-50 so nothing major.
    Tagged:


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    #2
    andrewfaulk
    Registered Users Posts: 437 ✭✭andrewfaulk


    HMRC has decided that you as the Irish exporter selling into the UK needs to register with them and pay UK Vat to them.. This applies whether you ship once or thousands of time..

    Will also entail doing regular UK VAT returns..

    No VAT payable in IE, as these would be exports to a third country


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    #3
    Gloomtastic!
    Registered Users Posts: 8,428 ✭✭✭Gloomtastic!


    Total numbty here but is UK VAT not subject to turnover being over a certain threshold?


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    #4
    Anndoe
    Registered Users Posts: 2 ✭Anndoe


    @gloomtastic! That’s what I thought as I’m sure we wouldn’t be reaching the threshold as a small business starting out.. I just can’t find anything clear cut online and finding it impossible to get through to any helplines with everyone working from home now..


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    #5
    silver2020
    Registered Users Posts: 2,045 ✭✭✭silver2020


    I don't understand the fixation of the UK when there's a massive market of over 300m people a few miles further away.

    I'm in an online company and our sales to European customers have soared in the past few weeks and is multiple times what we did in the UK last year and has necessitated an additional staff member with language skills.

    Forget the UK and their cumbersome paperwork, look at the European opportunities.


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    #6
    theWebAdvisor
    Registered Users Posts: 35 ✭theWebAdvisor


    Gloomtastic! wrote: »
    Total numbty here but is UK VAT not subject to turnover being over a certain threshold?

    Unfortunately they decided their is no longer any threshold for distance sellers, so liable from first sale.
    Otherwise if you send to UK your customers will get VAT and courier charge in UK when it arrives.
    As your starting out only way around is to maybe use marketplaces Ebay, Etsy ( if your product suits), just remember to adjust margin to cover their fee's. They are supposed to collect the VAT, currently this seems haphazard in implementation, I think they have until July before they are mandated to do.


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    #7
    wmpdd3
    Registered Users Posts: 9,624 ✭✭✭wmpdd3


    If you are selling from your own website then yes, not if selling through Amazon or Etsy etc, they handle the VAT for you. So now I only sell to the UK and Norway through Etsy.


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    #8
    andrewfaulk
    Registered Users Posts: 437 ✭✭andrewfaulk


    Gloomtastic! wrote: »
    Total numbty here but is UK VAT not subject to turnover being over a certain threshold?

    Literally every other country in the world is, but the UK think they are a special case so want every one else to do their work for them.. Have heard of and spoken to a few Dutch and German based companies turning their back on the Uk market as not worth the hassle..

    BBC's take on it:
    https://www.bbc.com/news/business-55530721

    Silver 2020 is right, push into the EU and don't waste time on the UK.. Half of the brits don't understand anyway how it is their own fault, so you will have to deal with a lot of moaning


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