VAT between Ireland and UKWord格式文档下载.docx

1、in Bhreisluacha）, being the Irish Gaelic translation. Since 1 July 2011 the standard rate of Irish VAT has been 21%, but reduced rates of 13.5%, 9%, 5.2% or 4.8% may apply to some supplies.Exporting goods to IrelandA VAT-registered UK business does not need to charge VAT on goods it is sending to Ir

2、eland, provided it keeps documentaryproof of export. It must also obtain the Irish customers VAT registration number and show it on the invoice （including the IE prefix）. All Irish VAT numbers are in the format 9999999X or 9X99999X.For VAT purposes it is physical movement of goods that is relevant,

3、rather than the invoicing name or address. An invoice to an Irish customer when the goods are not leaving the UK will not normally be classed as an export, and UK VAT would be chargeable. However, goods being sent to Ireland on behalf of a UK customer without an Irish VAT number are still subject to

4、 UK VAT at the usual rate （even if the customer is registered for VAT in the UK）.Even where VAT is not being charged, the net value of the sale must still be reported on the UK VAT return, in boxes 6 and 8. It should also be included on the EC Sales List, and the Intrastat return if the business is

5、required to make one.The UK business is able to reclaim any UK VAT on the goods which it is exporting, subject to the normal rules about reclaiming input VAT.If the Irish customer is not registered for VAT, and the UK business is not registered for VAT, then UK VAT must be charged. In this case, the

6、 sale is included in box 1 and box 6 of the UK VAT return, but not box 8. It does not get included on the EC Sales List, but is liable to be reported on Intrastat. No VAT is chargeable on goods which would normally be zero-rated or exempt when supplied in the UK （for example, books, childrens clothi

7、ng and some food items）.Any compulsory extra charges for freight, shipping, postage or delivery should be charged at the same rate of VAT as the rest of the items in that shipment, being either 0% if all the conditions are met, or the usual UK rate applicable to those items if not.Regardless of whet

8、her or not VAT was charged on the sale, if the UK business accounts for VAT on the Flat Rate Scheme, it must include the value of the export in the turnover on which the Flat Rate VAT is paid. This may mean that the business is better off not being on the Flat Rate Scheme.Every year the UK business

9、should check whether its level of sales to unregistered customers in Ireland requires it to register for Irish VAT under the distance selling rules. Broadly, these require a UK business to register for Irish VAT, and then charge that instead of UK VAT, if its sales of goods to customers in Ireland w

10、ho are not registered for Irish VAT are over 35,000 in a calendar year. All such sales would then be outside the scope of UK VAT, but still reportable in boxes 6 and 8 of the UK VAT return. They would not get included on the EC Sales List, but are liable to be reported on Intrastat. Overseas registr

11、ation is also optional at lower levels of sales, but as rates of Irish VAT are typically higher than the UK VAT equivalent, this is unlikely to be favourable.Importing goods from IrelandA VAT-registered UK business importing goods from Ireland should give the Irish supplier its UK VAT registration n

12、umber （including the GB prefix） so that Irish VAT does not get charged. If VAT is charged, the UK business cannot reclaim it on their UK VAT return or by a direct claim to the Irish tax authorities. The best that the UK business can do in these circumstances is to confirm its VAT registration number

13、 to the Irish supplier, then ask for a full credit note and for the goods to be re-invoiced without VAT.When a UK VAT-registered business imports goods from Ireland from an Irish VAT-registered business, the UK business should pay UK VAT on the import by including VAT in box 2 of its regular UK VAT

14、return, at the appropriate UK VAT rate. It may then reclaim that same amount from HMRC by including it as input VAT in box 4 of the same VAT return, subject to the normal rules about recovering input tax. The reason for this apparently circular exercise is to avoid VAT distortions between buying goo

15、ds in the UK and importing them from Ireland. The net value of the import should be included in boxes 7 and 9 of the UK VAT return. Imports do not get shown on EC Sales Lists, but are liable to be reported on Intrastat.If the UK business accounts for VAT on the Flat Rate Scheme, it must still pay th

16、e full UK rate of VAT （rather than the reduced Flat Rate of VAT） on imports by including them in box 2 as above. As with other expenses under the Flat Rate Scheme, the right to reclaim that VAT in box 4 is very limited.Special VAT rules for the movement of goodsDifferent rules may apply in certain l

17、ess-common situations:Supplies to privileged persons in other EC states;Installed or assembled goods;Goods supplied on sale or return;Transfers of own goods between the UK and Ireland within the same legal entity;Goods sent for testing;Triangular business transactions;Movements of goods for process,

18、 repair etc;Excise goods;Call-off stocks;Consignment stocks;Temporary movement of goods;Mobile phones and computer chips;Samples.VAT on services provided in or to IrelandUK VAT may need to be charged on services performed in Ireland or to clients based in Ireland, depending on the type of service su

19、pplied. This is a complex area, and there are specific rules for the following services:Services relating to land or propertyServices of short-term hire of means of transportServices involving physical performance and events. For example artistic, cultural, education and training, sporting, entertai

20、nment services, exhibitions, conferences, meetingsSupplies of admission to artistic, cultural, education and training, sporting, entertainment events, exhibitions, conferences and meetings and services related to admissionsAncillary transport, valuation of/work on goodsRestaurant and catering servic

21、esPassenger transportFreight transportIntermediary services （generally agencies or brokers working for a commission）Training services supplied to overseas governmentsEverything else is covered by a general rule. This includes copyright, royalties, licences, other intellectual rights, advertising, co

22、nsultants, engineers, lawyers, accountants, data processing, written translation, computer programming, software maintenance,web design, sound engineers and technicians, the supply of staff, banking and insurance.Under the general rule, if the service is being supplied to a consumer （rather than a b

23、usiness） in Ireland, it will be subject to UK VAT. This means that UK VAT must be charged at the usual UK rate, either standard rate, reduced rate, zero-rated or exempt. The UK business will account for VAT in the usual way.If the service under the general rule is being supplied to a business custom

24、er in Ireland, it will be within the scope of Irish VAT （UK VAT is not charged）. The customer does not need to be registered for VAT for the service to qualify as being for business purposes, but some evidence of the business purpose should be obtained.Most services are then covered by the Irish rev

25、erse-charge procedure. This means that the Irish customer has the responsibility for dealing with most of the VAT issues. If not, the UK business may need to register for VAT, and then charge and account for it, according to Irish tax law. This is beyond the scope of this post, but more detailed inf

26、ormation can be foundhere.If the reverse-charge applies, the UK business needs to: Include an appropriate statement on the invoice, such as “This supply is subject to the reverse charge” Include the net value of the service in box 6 of the UK VAT return From January 2010, include the service on the

27、EC Sales ListIf the UK business accounts for VAT on the Flat Rate Scheme, it does not need to pay Flat Rate VAT on the value of services which are not subject to UK VAT due to them being performed in Ireland or to a customer based in Ireland.If the Irish customer also has a branch or premises in the

28、 UK, it is necessary to look at the whole picture to decide which location is the most direct user of the service. This should reflect commercial reality, and may be different from the contractual position. For example, if the customer has their headquarters in Dublin, and all invoices are sent ther

29、e, but most contact is with their office in London, it is likely that the service will be treated as supplied in the UK and subject to UK VAT.Services relating to land or property include estate agency, conveyancing, architects, surveying, construction, property maintenance and repair work, hotel ac

30、commodation （unless a tour operator）, defined exhibition stands, and property management services. If the property is in the UK, the service is liable to UK VAT regardless of the status or location of the customer. If the property is in Ireland, the service is outside the scope of UK VAT regardless of the status or location of the customer. The service may be chargeable to Irish VAT, and the business may need to register for VAT.With all these services, it is important to look at the precise nature o