Eu Vat

A

astrosaver

Registered User
Messages
13
Hello,

I sell products to both IE and EU markets, mostly consumers, not
businesses. So I have to charge all customers in EU, VAT at the
Irish VAT rate of 21%. My competition in the UK and other markets only charge VAT at 17.5% or less. This makes my products uncompetitive.

So my question is, as an Irish Registered company, can I register
for VAT in another (say the cheapest) country, and do tax accounting
there? Or does the company itself need to be registered in the same
jurisdiction as the VAT registration?

What is the best solution to this problem?

Astro
 
astrosaver said:
,,, This makes my products uncompetitive. ...What is the best solution to this problem?...
Click to expand...
Underciut the competitions' VAT inclusive price or charge less for deliveries? (some on-line sellers are taking the mick with their delivery charges into Ireland or even within Ireland in some cases)
 
Thanks for the ideas.

I try to undercut the competition, by absorbing the extra few % VAT I need
to charge, but it means I'm losing out on profit, when my competitors have the same, or cheaper, cost base.

The revenue info on EU vat rules is not very clear, and even talking to
my accountant I seem to know more than he does about EU VAT.

It seems the cheapest place in Europe to register for VAT is Luxembourg,
which has a VAT rate of 15%.

http://www.fidomes.com/EN/luxembourg/index.asp?idLux=7

What I'm not clear on is, if the company needs to be registered in Luxembourg too, or if you can just do tax accounting there.
 
You fall into the Irish VAT system if you do business in the State.

To avail of a lowe rat of VAT in another State - you would have to do your business there. You could possibly register a company in another country - but you would need to make sure it was resident there and business carried out in that country....... this is complex and needs professional advice. If you managed and controlled the company from Ireland, the company could be Irish resident even if incorporated in another Country, and therefore still fall into Irih tax system.

Also, where are the goods being supplied from? Triangulation may be an issue.

I am no expert on this, but am aware that it can be complex to structure matters to avail of the best VAT rates - and could possible cost you a lot. Would it be worth it?
 
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