VAT on EU/UK Supplier Purchases

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soma

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Hi there, I was wondering if someone could clear this up for me.

When a company is registered for VAT in Ireland, and they wish to buy goods from a supplier in the UK/EU, the company:

* Gives the supplier their Irish VAT Number IE XXX
* They are not charged VAT on the purchase by the EU/UK supplier

What about a company that is NOT registered for VAT in Ireland, because they are below the VAT threshold..?

Do they pay the VAT to the supplier in the EU/UK at the local rates, Irish rates, or do they not have a VAT liability to the supplier at all..?

Any input/clarification appreciated, Cheers.
 
soma said:
Hi there, I was wondering if someone could clear this up for me.

When a company is registered for VAT in Ireland, and they wish to buy goods from a supplier in the UK/EU, the company:

* Gives the supplier their Irish VAT Number IE XXX
* They are not charged VAT on the purchase by the EU/UK supplier
Click to expand...

Correct.

What about a company that is NOT registered for VAT in Ireland, because they are below the VAT threshold..?

Do they pay the VAT to the supplier in the EU/UK at the local rates, Irish rates, or do they not have a VAT liability to the supplier at all..?

Any input/clarification appreciated, Cheers.
Click to expand...

If you are not registered for VAT, you have to pay it on purchases and at the rate of the supplying country.
 
If you are not registered for Irish VAT the EU supplier will charge you VAT from their country of origin.

Just to add however, if you acquire goods from abroad to a value of more than €41,000 in a single year, that triggers an obligation to register for VAT and to charge yourself Irish VAT on acquiring those goods.
 
I'm setting up a new business and needed to make some purchases in the UK before being registered for VAT in Ireland and therefore had to pay UK VAT. Now that I'm registered here can I reclaim the UK VAT and if so, how?
 
Do you then have to pay VAT on the goods to the VAT man in Ireland?

You can reclaim the VAT by going to www.hmrc.gov.uk and filling out the form VAT65a...i think/hope that's the right one as i am just filling it out at the minute.
 
Thanks for the info on the forms. Not sure of the answer to your question though. Will have to run that past my accountant although he wasn't sure about the process for reclaiming UK VAT in the first place!
 
No, the normal procedure is to charge youself vat at the irish rate on the net cost of the UK goods. Add that to your T1 figure.
You can reclaim that same amount as input Vat. Add to your T2 figure.
So, provided the goods are fully for the business, and the business is not partly exempt, the procedure is vat neutral.
 
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