Goods to Eire and VAT

[Digger]

I have just supplied a company in Eire with some £2,000 worth of goods - without VAT charged.
I know I have to prove the goods left the country - but which is the best way to do this.?
And anything else I need to watch out for?


cheers

 

[Pilfo]

Why didn't you charge VAT, or is it that you aren't VAT registered?

Pilfo

 

[Joyous]

Hi Digger

Keep on record the standard documentation such as purchase orders, packing lists and invoices. If you have documents such as seaway or airway bills then obviously you should keep these.

Why didn't you charge VAT, or is it that you aren't VAT registered?

Supplies made from the UK to a VAT registered person in a EU member state are zero rated for VAT.

Regards

Joy

 

[Pilfo]

Supplies made from the UK to a VAT registered person in a EU member state are zero rated for VAT.

No, VAT is only not charged if they are acting as an agent/third person, and the goods are only being delivered and not supplied to that third person.

VAT should still be charged as the VAT portion is that persons/companys input tax. VAT is also included when supplies are made to a private individual, but of course they are unable to claim it back.

Otherwise, only exports are zero rated, and as the Republic of Ireland is an EC member VAT is chargeable. Since the introduction of the Single Market, goods leaving the UK to go to other Member States are not called 'exports', but are referred to as 'removals'. The term "export" is only used for goods leaving the UK to go to countries outside the EC.

For more information, see VAT Notice 703.

Pilfo

 

[Joyous]

Hi Pilfo

VAT Notice 703 refers to the export of goods outside the EC. Digger is supplying goods within the EU.

Upon receipt of the goods Diggers customer will account for VAT under the acquisition rules in his member state.

You have been sadly misinformed.

Regards

Joy

 

[Pilfo]

A brief lapse in concentration (or maybe it's just my age)...it's VAT Notice 725 The Single Market.

However, there are certain rules that still have to be complied with.

Pilfo

 

[Digger]

Thanks all ,
We have supplied to Eire before - but had a nasty turn a few years ago with the VATman ,when we couldn't prove it had left the country,coupled with the recieving company having gone out of business ( thankfully we had been paid ) - so documentation was non existent - this is what worried me this time. I wasn't responsible then , and it's quite possible that the previous person had not kept as good a record as I have of this transaction.
I have copies of the Airway Bill,the original Purchase Order and serial numbers of the units shipped.

cheers