I own a Vat registered business based in Newry. Should I charge Vat on the sale of goods to my Vat registered customers in the Republic of Ireland?
You can zero rate the supply of goods if the customer provides their Irish VAT registration number, business details and if you arrange for the product to be delivered to the business address in the Republic of Ireland.
On receipt of the Irish VAT number you must verify this with HM Revenue & Customs by either phoning 08450109000 or online on the VIEs website to ensure that you have been provided with valid details before issuing your invoice. Your invoice must include the customer’s name, Irish VAT number, a description of the goods and an invoice number;
You must also retain evidence that the goods supplied by you have left the UK. The types of evidence are as follows; Written order from your customer which shows their name, address and Irish VAT registration number and the address the goods are going to; date of departure of the goods from your business and a signed delivery note.
If the customer wishes to collect the goods themselves you must also keep details of the vehicle that has removed the goods from the UK. This would include the registration number of the vehicle collecting the goods and the name and signature of the driver and, where the goods are to be taken out of the UK by a different haulier or vehicle, the name and address of that haulier, that vehicle registration number and a signature for the goods.
Please note that where evidence such as the above is not retained, it is you, the supplier, who will be held liable if HM Revenue & Customs determine that VAT was chargeable.
There are also different obligations when Northern Ireland businesses supply services to customers in other EC countries.
The advice in this column is specific to the facts surrounding the questions posed. Neither PKF-FPM nor the contributors accept any liability for any direct or indirect loss arising from any reliance placed on replies.