VAT on EU Imports and Non EU Imports

O

olatc

Guest
Hi

Can someone explain to me in lay man terms the treatment of VAT on imported goods from EU and non EU countries. I will be importing products from Europe mostly but also some products from Asia.

I have looked at revenue guides but am confused. Do I pay VAT on the products when purchasing and charge VAT at the Irish rate when reselling?

Any advice appreciated.

Tom
 
You have to be VAT registered to charge VAT. If you are supplied with goods from other EU countries you can give the supplier your Irish VAT number and be exempt from VAT from that country. That supplier has to ensure the goods leave his/her country.
As for outside the EU, am not so sure except to say that if you are travelling in person you can claim tax rebates at airports on goods bought if you furnish receipts. This is generally for tourists. I would imagine you will pay tax on goods been traded.
 
hI Olatc,

Only just came across your post. I am a freight forwarder and can advise as follows ;

To quote directly from the VAT Guide 2008;

The supply of goods by a VAT-registered trader in one EU Member State to a VAT-registered trader in another EU Member State normally qualifies as an intra-Community supply. A VAT-registered trader in the State may zero-rate the supply of goods to a customer in another EU Member State if:
• the customer is registered for VAT in that other EU Member State,
• the customer’s VAT registration number (including country prefix) is obtained and retained in the supplier’s records,
• this number, together with the supplier ’s VAT registration number, is quoted on the sales invoice,
• the goods are dispatched or transported to that other EU Member State.

If you are importing from other EU member states you need to file INTRASTAT returns.

Traders engaged in intra-Community trade are obliged to make a periodic INTRASTAT return, for statistical purposes, where the value of goods acquired by them from other EU Member States exceeds Euro 191,000 per annum.

Further information on INTRASTAT returns is available from the VIMA Office, Government Offices, Millenium Centre, Dundalk, Co. Louth. – Phone number (042) 9353700 or LoCall 1890 251010, or by email to vimahelp@revenue.ie.

In relation to imports from outside the EU, the following applies ;

1) You will need to classify the goods and determine how much import duty will be due on the goods.
2) VAT will be charged by Irish Customs over the value of the goods, the cost of freight (if not already included in the sales invoice) and the amount of duty.

In relation to your VAT return, please observe the following ;
1) In box E1 you need to record the value of sales to other EU countries
2) In box E2 you need to record the value of Goods received from other EU
countries
3) In box T1 you need to record the total VAT liability of goods and services
supplied plus intra EU acquisitions and parcels imported VAT free
4) In box T2 you need to record the total deductible VAT in respect of your
purchases and Intra EU acquisitions and VAT paid on imports from outside the EU

If you require any assistance, clarification or perhaps even a second opinion on your transportation for your imports, drop me a PM.

Best regards,
Rudolf289
 
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