declaring VAT on imported products?

Premier_2

As JasonLVC says, if you have provided your VAT number to the other EU company, they are able to issue you an invoice without any of their VAT. They need proof it was exported out of Eire too but that's their issue.

Your issue is that by providing your VAT number, you were supposed to be the importer, so you need to pay the VAT yourself (at the UK rate) by including the amount in box 2 of your VAT return.

If applicable, you may also be able to reclaim that vat as input tax in box 4 (so effectively you still haven't paid any vat)

Lloyds_Dad

seismicryan wrote: »

Maybe a little more detail would help..

we are based in Northern Ireland, and buying from a company in Republic of Ireland.

We obviously do not need to go through any customs as there is no stopping at the border.

As we are not a ROI business however they do not charge us VAT on our invoice.

The products themselves are just polo shirts and sports clothing.

Hope this helps... I'm thinking I will just call HMRC and ask them!

Ryan

The advice you have received is pretty much spot on although if you are talking to customs they will now refer to your vat number as an EORI (same numbers). Be careful to ensure that the t shirts are actually EU origin as I would be very surprised if the Republic manufactured these and have probably been imported from India, China etc. If they have been imported then duty needs to have been paid upon import rather than turned around using a bonded wareouse

Rgds

seismicryan

Only getting back to look at the responses now.. thanks for the input guys...

I'm aware that as a VAT registered company if we are importing goods from another VAT Registered EU company they do not charge us VAT.

The trouble is that if these goods were coming in from, say, Germany, they would be stopped at customs and we would receive a bill for VAT and duty etc..

But since these wont actually be stopped at customs there is no opportunity to be automatically charged VAT, so it is on us to tell HMRC that we've bought them and that we want to pay the VAT.

As Premier stated, would we just have to declare them on the VAT return, then reclaim the VAT again..?

Ryan

martindow

If the company will supply them with no Irish VAT on the strength of your UK VAT number you do as you say in post 14. The problem is that they might be loath to do this as there will be no evidence of the goods being exported and will charge Irish VAT. This you will not be able to enter and reclaim on the UK VAT return.

If they insist on doing it by the book it would be best to pay for a carrier to provide the evidence they need to supply it without a VAT charge.

seismicryan

Thry have already said that they will be charging no VAT so looks like that is what I will have to do..

Ryan