VAT rate for exporting software

Z

z107

Guest
I've been looking that this:
[broken link removed]

It seems that Irish VAT will probably have to be applied if you are providing software to download to the UK. It this is the case, it will put Irish exporters at a huge disadvantage.

Can someone confirm the VAT rate?
If it is 21.5%, would it be better to set up a new company in the UK?
 
it depends on who you are supplying the software too ?
UK companies who will most probably be vat registered or to genr=eral public who will most probably not be vat registered.
 
Supplying to UK companies.

This part:
the customer's VAT registration number (including country prefix) is obtained and retained in the supplier's records
Will cause problems. We will have to obtain VAT numbers which puts an obstacle in the way of the purchase. It also highlights that we are a foreign company.
Charging Irish VAT will be even worse, and puts us at a considerable disadvantage to the local competition.
 

This 'obstacle' is also in the way of Irish companies buying from UK. If everyone is VAT registered, there is no issue. You simply request the VAT number and that's it. Keep the records and account for the sale as an export.
 
I just tried a purchase from a company in the UK, and they don't ask for a VAT number, but just add (UK) VAT onto the sale at time of purchase. We will have to do the same or it will put customers off.

Thanks for everyone's responses.
 
I just tried a purchase from a company in the UK, and they don't ask for a VAT number, but just add (UK) VAT onto the sale at time of purchase. We will have to do the same or it will put customers off.
It won't put customers off it's the way business is done.
Who cares how one company in the UK run their business.