VAT Invoicing to Ireland business

Hello, Our UK VAT registered company purchases goods (Clothings) from Asia countries and sell to Ireland businesses. And the goods are shipped directly from Asia to Ireland. How should our company invoices our Ireland business (i.e. what VAT rate to use or whether reverse charge applies). They are VAT registered as well. And our company is taking USD, anything to pay attention to? Thank you so much, Jeff

Hi,

If the goods move directly from Asia to the Republic of Ireland and the goods never come in to the UK then the supply is outside the Scope of UK VAT and so no UK VAT is chargeable.

Upon the goods reaching Ireland there will be import VAT charged and so it will then depend on who the importer of the goods is in to Ireland as to whether you are making a taxable supply in Ireland.

Thank you.