VAT query

G

ghi

Registered User
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i am etting up a business , created an on-line shop and will be reselling products to Irish customers (not to companies) . Will be buying the goods from outside the EU as well as from inside the EU.
In such case do i need to register for VAT knowing that for a while i do not expect to sell for more than for the €75,000 limit.

I am unsure what the following means


Other reasons for VAT registration are:
  • The business makes intra Community acquisitions of goods
Thank you in advance
 
found this on the revenue www
since i will be selling only from my online shop i guess i fall in the (c) category
If someone could confirm i would appreciate
The principal thresholds applicable are as follows:

  • (a) €37,500 in the case of persons supplying services,
  • (b) €37,500 for persons supplying goods liable at the reduced or standard rate which they have manufactured or produced from zero rated materials,
  • (c) €37,500 for persons making mail-order or distance sales into the State,
  • (d) €41,000 for persons making intra-Community acquisitions,
 
No. As you are established in Ireland, Distance sales rules do not apply to your supplies in Ireland.

This applies to you - (e) €75,000 for persons supplying goods

When (and if) you start supplying to other EU countries Distance sales rules will apply to those supplies.
 
Thank you Paddy199.
So (e) it is for me.
Wonder if you could clarify this for me ? As i said i will be buying goods from inside the EU as well as from outside (US and NZ)

Other reasons for VAT registration are:
  • The business makes intra Community acquisitions of goods
 
Section 8(1A) VATA72 stipulates that anyone in business in Ireland who makes an intra-Community acquisition of goods into Ireland totalling in excess of [FONT=Adobe Garamond Pro Bold,Adobe Garamond Pro Bold][FONT=Adobe Garamond Pro Bold,Adobe Garamond Pro Bold]€41,000 [/FONT][/FONT]in a continuous period of 12 months is an accountable person.

The accountable person must register and account for Irish VAT in respect of the acquisition.

The accountable person self-accounts for VAT on the intra-Community acquisition. He or she does this by showing the VAT charged on the acquisition as output VAT (i.e. as a VAT liability) on his/her VAT return. This is called "self-accounting" for VAT on the "reverse charge" basis.

In the case of persons making taxable supplies in Ireland, i.e. persons registered for VAT in respect of making supplies of goods or services which are liable to VAT (at 0%, 4.8%, 13.5% or 21%) a simultaneous input VAT credit for the same amount may be taken on the same VAT return. This has the effect of rendering the transaction VAT neutral, i.e. output VAT = input VAT in respect of the acquisition.

Also, watch Intrastat and VIES returns.

Unless you are 100% on this, you should get professional advise.
 
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