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Posted Wed, 02 Aug 2023 09:24:02 GMT by Mandy Lockett
We are based in the UK (Company A) and purchasing from our Italian distributor (Company B) who will direct ship to our S Ireland customer (Company C). Company B is stating to Company A that they need to charge Italian VAT at their rate of 22% is this correct. Any advise please
Posted Wed, 02 Aug 2023 13:14:14 GMT by
For me this is classic case of Invoice address/ Delivery address Payment by UK Company . Invoice IT-UK no vat with delivery address to IE .
Posted Wed, 02 Aug 2023 18:46:12 GMT by Customs oldtimer
The VAT rules are much more complicated now we are not in the EU. The VAT triangulation simplification no longer apply if an UK company is involved in the transaction.
I really suggest you get some specific advice on this transaction. In the situation you describe their are two sales transactions
1 .Italian supplier company B is making a sale to company A
2. company A is making a sale to company C.
To zero rate the VAT company B must - either export the goods from the EU or - make an intra EU supply to a VAT registered business in another EU country.
Neither appears to be the case here so if there is any doubt company B would be within their right to charge local VAT. You may also find you will need to register for VAT either in the EU country where the goods are sent from or the country where the goods are received or possibly so where else in the EU . Again I strongly suggest you get advice.
Posted Thu, 03 Aug 2023 13:56:19 GMT by HMRC Admin 10 Response
Hi.
It will depend in which country the supply of goods between A nd B is deemed to take place.
If the Italian company deem the supply to take place in Italy then this will be a supply within Italy and they will need to charge Italian Vat.
If the Italian company deem the supply to be made to company A in Southern Ireland then it would be a zero rated intra EC supply of goods if company A are registered for VAT in Southern Ireland .
If Italian VAT is being charged you would need to look at registering for VAT in Italy to reclaim the Italian VAT and also to be able to make the EC supply from Italy to company C in Ireland.
Posted Thu, 26 Oct 2023 07:44:03 GMT by
ok

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