Purchasing from Irish Distributor

[UK2004]

Anyone know the score if you use an Irish distirbutor, do you pay VAT and import tax or just VAT on arrival, can it work out cost effective?

[JamieM]

Hi there,

If you are not VAT registered then you will pay VAT at 21% at the point of sale. There is no import tax as Ireland is an EC member state.

If you are VAT registered then you submit your VAT number to the supplier, VAT is zero rated and accounted for on your UK VAT Return.

The above assumes you are in the UK.

Hope this helps.

[UK2004]

So if you are VAT registered then you don't pay any VAT on import either and you just charge it to your customers but show the purchas eon your VAT return?

[JamieM]

Yes, that's correct. You don't pay it at the time of import, you account for and pay it at the UK rate on your next VAT return.

This results in you paying VAT at 17.5% rather than 21% and because of the potential delay between your purchase and paying your VAT return, it can also help your cashflow too.

The same system applies to all EC member states.

[UK2004]

Cool thanks for letting me know!