sausagekayake
Registered User
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You need to charge the rate of VAT of the country where your customer sits, and pay the VAT to the tax office there.
VATMOSS has been setup to deal with this in a simplified manner, so you don't have to register with 28 tax offices.
There's some exception, minimum turnover, etc..
Thanks very much for the reply.
So I have been researching all day. This is what I understand now.
As I am selling online to other EU countries and as long as I stay under the threshold of the country I am selling and it is a B2C sale, then I qualify for Distance Selling.
From what I can gather this means I pay 23% VAT to the 'Irish' revenue on each sale (not sure if this line is correct, see question below). When and if I breach the threshold for a country in the EU which I am selling then I need to register for VAT in that country, or maybe use VATMOSS as you have stated above, need to research this tool.
So my next question is, my company is registered in Ireland, the product will be shipped on my behalf from the supplier outside of Ireland (Netherlands)to the customer in an EU country, B2C sale. I obviously have to collect VAT on the sale, so who should I pay VAT to, will it be where my company is registered or will it be from where the good were shipped, in this case the Netherlands?
Doesn't matter where the good is shipped from or your company is registered (assuming both in EU) - it only matters where the buyer sits. This is the tax rate that you have to charge.
You charge Irish VAT until you reach the distance selling threshold of the county to which you are selling
The only issue will be sales in Holland, your supplier will not zero rate the supply of it does not leave Holland.
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