VAT on imported goods

[Eileen Joy]

Hi. I am setting up a business which involves importing goods from Ireland. Do I need to pay the VAT the suppliers are asking for? Clearly I can't claim it back myself but I guess I have to pay it anyway as they are registered? Thanks.

 

[john1989]

Are you VAT registered?

 

[Hash and Bash]

Yes you would have to pay the Irish vat on the goods imported.
If you became vat registered you would supply the Irish company your vat number and they would not charge the vat (using the reverse charge vat system for the EU).
If you did register for vat you would need to charge vat on your sales.

 

[Eileen Joy]

Thanks for the replies. No I'm not VAT registered which I why I was a bit concerned.

 

[StevensOnln1]

If you are not VAT registered then VAT just forms part of the cost of whatever you are buying, you essentially ignore it.

 

[Eileen Joy]

I have just been a bit surprised because the VAT gets added on at the end and I thought the price shown for each item would include VAT so I haven't really been getting a true impression of the cost. Is it done differently business to business compared to with an ordinary customer?

 

[StevensOnln1]

It's the norm for B2B prices to be shown excluding VAT when the seller is expecting that the majority of their customer will also be VAT registered.

 

[Eileen Joy]

Thank you again. I feel a bit foolish asking some of these questions but the brilliant thing is I always get them answered!