Simple Guides

Do I charge UK VAT? Must I register for Irish VAT?

Currently if you are VAT registered in the UK, you will charge UK VAT if your Irish based customer is not Irish VAT-registered. If your customer is Irish VAT registered and the goods are being supplied to them for business purposes, you will verify their VAT number and business address with HM Revenue & Customs.

This will then enable you to zero rate the supply and the customer will account for the VAT under the reverse charge mechanism. You must also keep evidence that the goods have been dispatched from the UK.

You will also have to complete an EC sales list giving details of your Irish customers.

Post Brexit the movement of goods into or out of the UK may be treated as imports and exports, meaning the reverse charge procedure will not apply and input VAT will have to be paid by the customer at the point of entry which will of course also impact cash flow. The customer may also need to consider Customs Duties and there may also be an additional administration burden on you with regards to import and export documentation. Section 18 provides further information.

You should also be aware of the rules regarding distance selling i.e. selling goods directly to non-VATregistered persons e.g. mail order, catalogues, via the internet etc. Each Member State has its own distance selling thresholds and if you exceed these thresholds you are required to register for VAT in that member state and charge VAT accordingly.

The distance selling threshold for selling into Ireland is €35,000.

These rules apply to the EU “single market” and therefore may change post Brexit.

If your dispatch of goods to VAT registered businesses in other EU Member States exceed £250,000 per annum you will need to submit monthly Intrastat returns.

Box 8 of your VAT return is used to record EC transactions of goods.

If a non-established business sells goods in Ireland the VAT Registration threshold is €1.

However, this may change when the UK leave the EU on 29 March 2019.