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Irish LTD, operating outside EU, VAT - qualifying activity

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  • 13-08-2021 9:21pm
    #1
    KpsCowley
    Registered Users Posts: 175 ✭✭


    Hello,

    I run an Irish dropshipping LTD company, all of my companies activities are outside of the EU (stock location (China), dispatch, delivery, sales and customers (mostly US)).

    My biggest cost is advertising. I use FB advertising, and as I am an Irish company, they charge me VAT.

    I have been trying to register for VAT with revenue (so I can reclaim my advertising VAT payments), but they keep asking for the same documents (supplier contracts/invoices, sales invoice examples, etc) and won't tell me why they are not accepting my application. According to my interpretation of the revenue website on "qualifying activities", I do qualify. But my accountant feels the problem lies in them not thinking I have a qualifying activity, although he doesn't know for sure.

    Would any of you very helpful people be able to give any advice or point me in the right direction? (I have very little confidence in large tax advisor companies, they charge a fortune and are hit or miss, so this time boards.ie is my first stop).

    Thank you for any replies,

    Regards,

    Kevin.



Comments

  • Options
    #2
    ismat
    Registered Users Posts: 168 ✭✭ismat


    Have you sent the documents requested to revenue? If so have they given a reason that they are not acceptable for the purpose of the registration application



  • Options
    #3
    KpsCowley
    Registered Users Posts: 175 ✭✭KpsCowley


    Hi Ismat,

    For reference, below is what they asked for:

    ""

    REVENUE:

    Dear Sir, I refer to your recent application for Domestic and Intra EU approval with Revenue.

    To enable me to progress the application, kindly advise me of the following :

    1. A detailed description of the chargeable activity being carried out in Ireland

    2. Confirm the Business address and forward a copy of the lease in respect of the premise.

    3. As the Company registered in June 2019, please provide evidence of trading such as a copy of a contract, a service agreement, a sales invoice, or a purchase invoice from suppliers of goods/equipment or services related to the business.

    4. Supply Bank Account details and provide details of the website to advertise their services.

    5. Supply supporting documentation in respect of the Intra EU application.

    ""

    I supplied as much information as I could and gave examples of invoices and payments. But they keep asking for the

    documents to be resubmitted. There is something they are unhappy with but won't say what. Their reply is as below:

    ""

    REVENUE:

    With reference to the taxes and duty manual part 38-01-03b you are making an intention to trade application which is a business which has not yet commenced to supply a taxable good or service. You may register for VAT subject to the provision of satisfactory evidence that the applicant will become an accountable person such evidence of "intention to trade" can include

    copies of sales/purchase invoices

    details of suppliers lists

    stock purchases

    overhead or capital expenditure records

    copy of contract(s)/tender(s) of services to potential clients

    ""

    I supplied copies of sales / purchase invoices. I don't have a supplier list, only one, which I gave details of. I gave evidence of stock purchase. I have no overheads or capital expenditure. I have no contract with my supplier, or did I need to tender.



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