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Where Taxpayers and Advisers Meet

VAT on import to Ireland

seyates
Posts:1
Joined:Thu Oct 07, 2010 5:09 pm
VAT on import to Ireland

Postby seyates » Thu Oct 07, 2010 5:10 pm

I am a UK business registered for VAT. I have recently sold goods to a County Council in the Republic of Ireland. The goods in question are being shipped directly from my supplier in the USA to Ireland. The carrier is requesting a payment for VAT before the goods are released to the customer. As I am not registered for VAT in Ireland is there any method by which I can reclaim the VAT.

ladyeleanor
Posts:45
Joined:Tue Oct 05, 2010 11:10 am

Re: VAT on import to Ireland

Postby ladyeleanor » Thu Oct 07, 2010 6:40 pm

Dear Seyates

It's my understanding that if it is you who is importing the goods into Ireland from outside the EC (as opposed to your customer), you have ownership of the goods in Ireland for a period of time before the goods are delivered to your customer. This means that you would be making a supply of goods in Ireland and could be liable to register for Irish VAT subject to their VAT registration threshold.

There is a mechanism by which VAT can be reclaimed from EC member states by EC and non EC businesses, however, if this VAT has been incurred in relation to you making supplies of goods or services in Ireland (which your email suggests), the Irish authorities may reject the claim.

If your customer had imported the goods into Ireland they would have been responsible for paying the import VAT and they would take title to the goods on import which would mean that you did not make supplies in Ireland but in a location outside of the EC.

If my understanding of the situation is correct, the only way for you to reclaim the import VAT would be to register for VAT in Ireland.

If I have misunderstood, please correct me.

Regards

Generix
Posts:2532
Joined:Wed Aug 06, 2008 3:41 pm

Re: VAT on import to Ireland

Postby Generix » Fri Oct 08, 2010 10:11 am

I am a UK business registered for VAT. I have recently sold goods to a County Council in the Republic of Ireland. The goods in question are being shipped directly from my supplier in the USA to Ireland. The carrier is requesting a payment for VAT before the goods are released to the customer. As I am not registered for VAT in Ireland is there any method by which I can reclaim the VAT.
As poster above suggests is right.

The solution would be to sell the goods T1 or DDU to the customer in Ireland.
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