Hi,
A trader who is resident in Ireland has opened a branch in Northern Ireland, the branch being an office.
The trader has registered for VAT in the UK and goods are purchased from suppliers on the UK mainland.
The goods are taken by courier directly to a warehouse in Republic of Ireland, from where they are sold to retailers in Republic of Ireland.
The trader states that he will be able to reclaim the input vat on the goods from the UK, and as he is "exporting" to Republic of Ireland, he does not have to charge UK or ROI VAT, thereby leaving him competitive compared to others companies.
Is the trader eligible to reclaim the Input vat?
Replies (4)
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So they are holding a call off stock in the ROI
http://www.hmrc.gov.uk/manuals/vatposgmanual/vatposg3850.htm and
http://www.hmrc.gov.uk/manuals/vatposgmanual/VATPOSG3840.htm
Funny Business
I have come across similar situations with Ireland, who used to operate a special set of rules that allow the final recipient to declare as an acquisition and the warehousing costs to be relieved too. Worth checking with an Irish VAT expert if this is still possible.