VAT on overseas sales

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quinny

New Member
At present we are selling online to customers in Ireland only and charge VAT on every purchase. We now want to expand this to the UK and Europe, but I'm confused as to what to do regards to VAT. If someone from the UK was to phone up and order an item thats grand as you just ask them their VAT number and then don't charge VAT. But online it is all done automated so what do you do if someone has a VAT number or not? If given an option of entering a VAT number for price minus VAT, would this be open for abuse if someone did this and didn't have a VAT number? Or if you charge VAT on everything do you have to register for VAT in every country you sell to?
 

link8r

New Member
At present we are selling online to customers in Ireland only and charge VAT on every purchase. We now want to expand this to the UK and Europe, but I'm confused as to what to do regards to VAT. If someone from the UK was to phone up and order an item thats grand as you just ask them their VAT number and then don't charge VAT. But online it is all done automated so what do you do if someone has a VAT number or not? If given an option of entering a VAT number for price minus VAT, would this be open for abuse if someone did this and didn't have a VAT number? Or if you charge VAT on everything do you have to register for VAT in every country you sell to?

AFAIK, There are different rules. If you sell over a certain amount to a country (which is the VAT threshold for that country) , you're obliged to register for VAT in that country, which means you go back to charging VAT for everyone. If you're selling outside of the EU you don't charge businesses or consumers VAT.
 

FergusM

New Member
Hi,

I am not aware that you have to register for VAT in another country if you go over a certain limit. I have sold and bought in Europe with amounts well above the thresholds here and never had a issue. EBAY charges LUX VAT and I am sure they are over any threshold.

Some carts allow you to accept a VAT number from a customer from outside of your registered country. Can't remember which one though I am sure it will European carts as apposed to an US one. I seem to remember that you are responsible to check out the bona-fides of the customer and their VAT status in their home country. Getting official documentation with their VAT number is often done and checking to see if they have a company website. Search Google and you find how to check European VAT numbers(their make up and so on). Calling the Customs & Excise will give the final answer.

Regards
Fergus
 

MOH

New Member
Hi,

I am not aware that you have to register for VAT in another country if you go over a certain limit. I have sold and bought in Europe with amounts well above the thresholds here and never had a issue. EBAY charges LUX VAT and I am sure they are over any threshold.

Every country will have their own limits, but e.g. for the UK you're supposed to register if you sell more than GBP70k into the country.
 
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