# Buying goods ex vat from europe



## johnnyg (20 Feb 2008)

If you buy goods from europe/uk, no vat is charged on these goods once you supply your vat number,  do you pay the vat in ireland once the goods are reveived and how is this done, is it your responsibility to declare the goods and pay vat on them.

Cheers


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## mathepac (20 Feb 2008)

Have a look at this - http://www.askaboutmoney.com/showthread.php?t=75601


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## johnnyg (20 Feb 2008)

cheers mathepac, i thought it would be better tracked than that, what if you don't declare it, how can they track it down, seems a big loop whole to me


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## Importer (20 Feb 2008)

If you purchase zero rated goods from another EU country you dont have to pay vat when they arrive in Ireland although you do have to report the acquisition on your vat return and also your intrastat report if it applies to you.

When you finally sell those same goods to your customers in Ireland then the vat on this sale must be paid over to the revenue through your vat return. This is the point when the vat man gets his pound of flesh.

I hope this helps


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## johnnyg (20 Feb 2008)

The reason i ask is that a work collegue bought personal house items (showers/floors) vat free using his VAT number and told me it was quite legal.
He used his company visa and then paid it back with his own funds...seems illegal to me


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## Caveat (20 Feb 2008)

It is legal. What do you think is illegal about it?

We buy goods/components...from e.g. Germany/France on a weekly basis, provide your VAT no., make sure it's quoted on paperwork to you and you don't pay VAT.

_Edit: Oops! ah sorry - personal items...well...put it this way...it goes on - a lot._

_I don't think people lose any sleep over it._


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## ubiquitous (20 Feb 2008)

Will your colleague boast as loudly when he receives notification of a VAT inspection?


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## johnnyg (20 Feb 2008)

But how can they track it if he pays back the credit card with his own funds so there is no payment record from his bank to visa company.

what i mean by illegal is that is seems too good to be true, its like VAT evasion if there is such a word!!


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## mathepac (20 Feb 2008)

johnnyg said:


> But how can they track it if he pays back the credit card with his own funds so there is no payment record from his bank to visa company.
> 
> what i mean by illegal is that is seems too good to be true, its like VAT evasion if there is such a word!!


His company's financial records will show a VAT-free purchase, which goes where - into expenses, resale? and his company VISA statement will show a credit against that purchase which arrives from heaven?

Evasion / avoidance, who knows?


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## mik_da_man (20 Feb 2008)

Well you have to provide the EU company with your VAT number.
I suppose they have to declare all NON VAT sales and he may get tracked that way somehow......


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## mik_da_man (20 Feb 2008)

mathepac said:


> His company's financial records will show a VAT-free purchase, which goes where - into expenses, resale? and his company VISA statement will show a credit against that purchase which arrives from heaven?
> 
> Evasion / avoidance, who knows?


 
Not if he uses a personal credit card


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## Caveat (20 Feb 2008)

Some items are easy enough to "explain away" 

But something like showers? 

"Well, where exactly in your workplace is this shower then Mr X?" 

the auditor would surely ask...


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## mathepac (20 Feb 2008)

johnnyg said:


> But how can they track it if he pays back the credit card with his own funds..


By implication he used the company VISA card, I think.


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## johnnyg (20 Feb 2008)

Caveat..my thoughts exactly


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## mathepac (20 Feb 2008)

mik_da_man said:


> Well you have to provide the EU company with your VAT number.
> I suppose they have to declare all NON VAT sales and he may get tracked that way somehow......


Intrastat reporting.


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## ubiquitous (20 Feb 2008)

johnnyg said:


> VAT evasion if there is such a word!!



There is such a word. VAT evasion is the most common form of tax evasion.


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## johnnyg (20 Feb 2008)

But is this enforced or checked????

What happens if some takes you VAT number, like identity thieft?


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## ubiquitous (20 Feb 2008)

johnnyg said:


> But is this enforced or checked????


Well, the Revenue do employ large numbers of VAT inspectors...


johnnyg said:


> What happens if some takes you VAT number, like identity thieft?


In such cases, the onus is on the trader to satisfy themselves as to the identity and VAT particulars of the customer. The trader is financially responsible to the Revenue for the cost of any VAT evaded fraudulently by customers. For this reason, some firms like B&Q refuse to process "intra VAT" transactions unless the customer produces ID & documentary evidence of VAT registration.


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## johnnyg (20 Feb 2008)

good to hear..i'll have to wait and see but since he's being doing this "for ages" i won't hold my breath


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## Caveat (20 Feb 2008)

Traders can verify that a VAT no. belongs to a particular company here:

http://ec.europa.eu/taxation_customs/vies/vieshome.do?selectedLanguage=EN


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## ubiquitous (21 Feb 2008)

johnnyg said:


> good to hear..i'll have to wait and see but since he's being doing this "for ages" i won't hold my breath



You could always report him directly to Revenue if you feel like it.


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## 8till8 (21 Feb 2008)

Wasn't this type of VAT evasion going on with vehicles being imported from UK...ie car for private use was purchased ex-vat (uk vat) by quoting an Irish vat number?

How was that loophole closed?


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