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VAT Payment question???

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  • 07-08-2005 9:42am
    #1
    joePC
    Closed Accounts Posts: 1,637 ✭✭✭


    Example:

    I purchase a large number of products lets say CD's vat free.

    I sell those CD's to customers inc VAT, Do I have to pay that VAT back to Government?

    Thanks,


Comments

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    #2
    RainyDay
    Closed Accounts Posts: 6,925 ✭✭✭RainyDay


    Yes, of course. It's called Value Added TAX - so when you collect the tax on behalf of Revenue Commissions, you hand it over to them.


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    #3
    joePC
    Closed Accounts Posts: 1,637 ✭✭✭joePC


    Thanks,

    Also, What if I purchase those CD's Inc Vat but sell them at a profit is there VAT on that?


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    #4
    Fitzer12345
    Closed Accounts Posts: 22 ✭Fitzer12345


    If you pay VAT on your legitmate business supplies and you collect VAT from your customers, then you pay the difference between VAT paid by you and what is collected from customers


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    #5
    yop
    Moderators, Home & Garden Moderators, Regional Midwest Moderators, Regional West Moderators Posts: 16,723 Mod ✭✭✭✭yop


    Joe, sorry for jumping into ur thread, I can remove if u wish but on a similar line of questions,

    If i was the purchase goods on a supply only from a NI company, if I gave them my brothers VAT number, then I would not have to pay VAT, some one told me that I would not be chased up by the tax man here for the VAT, would that be correct?


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    #6
    antoinolachtnai
    Registered Users Posts: 9,787 ✭✭✭antoinolachtnai


    You might not be caught, but if you were, you would be in very deep trouble (and your brother might not come out of it too well either). There was a scam along this lines in operation for some time between the UK and Ireland regarding high-value electronics. Richard Branson used to do it a bit between the UK and France (as is narrated in his book).

    You would be ripping off the British Exchequer by doing this, and if the ladies and gentlemen of Her Majesty's Customs and Excise cottoned on to you, let's just say you would be taking the scenic route the next time you were visiting Donegal, and you wouldn't be avoiding connections at Heathrow just because of the congestion. (You can't get extradited for tax fraud, yet.)

    There are said to be a number of Irish 'businessmen' who favour making flight connections in the fine airports of New York, Schipol and Frankfurt.


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    #7
    RainyDay
    Closed Accounts Posts: 6,925 ✭✭✭RainyDay


    yop wrote:
    Joe, sorry for jumping into ur thread, I can remove if u wish but on a similar line of questions,

    If i was the purchase goods on a supply only from a NI company, if I gave them my brothers VAT number, then I would not have to pay VAT, some one told me that I would not be chased up by the tax man here for the VAT, would that be correct?
    The EU have a pan-European VAT reporting system in place. The supplier will be reporting your brother's VAT number and the category/value of the goods involved to his VAT authorities. If the category of the goods in question are 'unusual' for your brother's business, this will set off some alarm bells for a start.

    But is the risk of being caught the only reason not to take part in criminal tax evasion?


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