VAT Question

System

Hi

We have a customer (I'm not self employed I work for a company)who is based in Ireland and is VAT exempt. They want to order product to be invoiced to them in Ireland (no VAT) but delivered to an address in England.

Can I do this whithout charging VAT. I really don't know what the situation is in cases like this.

I would really appreciate it if anyone could help.

Jes

System

Re:VAT Question

Check on HMRC website as there are very strict rules about the place of delivery - sorry I dont know the exact rules!

Claudia

System

Re:VAT Question

I can't remember the exact rules either as it has been a lontg time since I had to deal with this problem, but look up vat triangulation on HMRC website. If I remember right it also depends on whether the goods remain in the country they are delivered in or whether they are to be moved as to whether vat is charged and also what vat registration number appears on the invoice.

Michelle

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Re:VAT Question

Krispi wrote:

I can't remember the exact rules either as it has been a lontg time since I had to deal with this problem, but look up vat triangulation on HMRC website. If I remember right it also depends on whether the goods remain in the country they are delivered in or whether they are to be moved as to whether vat is charged and also what vat registration number appears on the invoice.

Michelle

I would agree with that.

I have a feeling your company might be trying to pull a fast one

Regards

Dean

System

Re:VAT Question

I am also out of date but I remember a client taking horses to Ireland so that the transfer took place on Irish soil and then the purchaser brought the horses into the UK and saved the VAT.

System

Re:VAT Question

Having thought about it, I think that VAT is payable - if they are registered for VAT in Ireland and provide their Irish VAT number, THEN (and only then) can the invoice be submitted net and the fill in their equivalent of box 2.

Claudia

System

Re:VAT Question

Thanks for your help everyone.

I couldn't find what I was looking for on the website and when I 'phoned I was on hold for ages and still no one answered!!

I will check with our customer if he is registered for VAT in Ireland before I try customs again but I suspect that Dean is right and they are trying to pull a fast one

Jes

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Re:VAT Question

I think I have the answer!!! I've just been to an AAT branch meeting where the speaker was a VAT consultant. He says that if you zero rate items to be invoiced to an EU country - along with the paperwork you have to provide proof that the items have left the country i.e. shipping documents etc otherwise you have to charge VAT.

I guess you are going to be unable to provide that proof.

Annette

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Re:VAT Question

Thanks Annette

I still haven't been able to contact anyone. My customer has now said that he will send in a carrier to collect the goods, but he will still need to provide me with evidence that they have left the country wont he.

I've booked myself in for an import/export VAT seminar next month (I can hear you all dropping off to sleep already!) so hopefully I will get all the info I need.

Thank you so much for your help.

Jes

System

VAT Question

Jes wrote:

Hi

We have a customer (I'm not self employed I work for a company)who is based in Ireland and is VAT exempt. They want to order product to be invoiced to them in Ireland (no VAT) but delivered to an address in England.

Can I do this whithout charging VAT. I really don't know what the situation is in cases like this.

I would really appreciate it if anyone could help.

Jes

Just popped into the forums:

Answer to your Question

Easy ! In order to qualify for vat exemption for goods to be 'sold' to the EEC, two items are needed

1. The company in question you are selling to, need to be registered and provide you with a valid VAT number (different question on how to verify the VAT number)

2. Proof that the goods have been delivered to the EEC country (export documents)

So in your case as the goods are to be delivered to a UK destination both criteria do not apply and therefore you must, I repeat, you must charge standard rate vat.

Robin Stride FMAAT (membership No 412)

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Re:VAT Question

Hi Robin

Thanks for your reply.

I will e mail them tomorrow and explain the situation, I have of course insisted on a pro forma payment which hasn't arrived yet so I am becoming increasingly uneasy about the whole thing.

However, I have learnt something from this so it has been useful - and I shall keep a record of it towards my CPD.

Many thanks for your help

Jes

System

Re:VAT Question

Another similar VAT question I'd like advice on. We (a UK company) have a customer in Taiwan who has ordered goods to be sent to an associate company in France. The invoice is to be sent to the company in Taiwan. They are asking for it to be zero rated. However, they can only supply the VAT number of the French company to whom the goods are to be sent, but are not happy for the invoice to be addressed to the French company. They want it addressed to the Taiwan company. I have said we cannot do this as it does not comply with EC regulations. Am I right?

System

Re:VAT Question

Tricky one...

Should be ok it complies as far as I can see.

Try revenue (vat queries) on 0845 010 9000

Press 2 when you get a recorded announcement

System

Re:VAT Question

Hi Jez

Where is your import /export seminar being held and who is running it? Can you post the details on here

Cheers

Sheelagh

System

Re:VAT Question

Hi

The seminar is in Stoke On Trent,Staffordshire, I know it is one day next week (I think Thursday) but I will have to check my diary at work tomorrow. It is run by customs and excise and is free of charge (always a bonus!) and I know they are doing identical events in other areas if this is too far away for you.

Jes