VAT Query

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Micaa

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I have a query hopefully someone can help with. Work with an Irish VAT registered business. We have a sister company in the UK. We sell goods to unregistered VAT customers in Northern Ireland and are about to start a process whereby the goods ordered by NI customers are delivered directly to them by our UK sister company. As they never come into the Republic of Ireland and are supplied directly from the UK to NI but we record the sale what VAT rate do we have to apply to the sale?
 
mathepac said:
What does that mean?

Is it a company / trading entity with a UK VAT registration?
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It's a company registered in UK for VAT. By sister company I just mean an intergroup company i.e we have the same parent company.
 
Goods sold and delivered within the UK are subject to UK Vat regardless of the scheme and invoicing practices you employ. Have you thought of asking an accountant ??
 
Micaa said:
... UK to NI but we record the sale what VAT rate do we have to apply to the sale?
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A VAT registered company is shipping goods to customers within the UK (Northern Ireland is part of the UK) therefore VAT is at the appropriate UK rate.
 
I know that selling goods from here to individuals in the UK incurs Irish VAT until our sales reach a certain level and then we have to register for UK VAT. So does the fact that the goods are supplied within the UK mean that they automatically incur UK VAT?

Oh and by unregistered VAT - I forgot the "for"......I mean unregistered for VAT - private individuals.
 
mathepac said:
A VAT registered company is shipping goods to customers within the UK (Northern Ireland is part of the UK) therefore VAT is at the appropriate UK rate.
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so are you saying that an irish company should be charging UK Vat?

If I were you micaa, I'd ring the local Vat office and ask to speak to an inspector about this....
 
VAT rules in relation to goods are determined by place of supply rules.

If the goods orginate in the UK the supply takes place from the UK, so UK VAT would be charged.

AS regards at what level of sales one must register remember that in the case of "distant seller" there is no lower limit for registration.

I believe that will be the case and the Irish co. will need to register with HMRC for VAT as the Co. is making taxable supplies in the UK.

Be carefull in making the sales you do not create a PE (Permanent Establishment) for the ROI co. in the UK are you may end up being subject to UK CT on a portion of the companies profits.
 
Closing this thread because too many of you are not playing nicely and it's taking up too much mod time.
 
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