DDP and VAT

Didn't find your answer?

We are selling goods to Southern Ireland and our customer wants them to be delivered under DDP (which we are not happy about). Is it correct that we have to charge Irish VAT to this customer (we hold Irish VAT registration) in order for us to reclaim back import VAT? Thanks

Replies (2)

Please login or register to join the discussion.

VAT
By Jason Croke
12th May 2021 12:12

DDP = you are liable for the import VAT in Ireland and yes, you need to charge Irish VAT to your Irish customer and you can also reclaim the Irish import VAT. Your shipping agent will have your GB EORI for export paperwork and your IE EORI for your importation into Ireland.

Ireland also operates Postponed Import VAT Accounting, so I don't know if you do your own Irish VAT returns or get a third party to do them for you, but you can ship DDP and use Irish Postponed VAT Accounting, so nothing to actually pay, in/out on your Irish VAT return for the import VAT and then you just have the Irish output tax to declare on the sale to your Irish customer.

Thanks (1)
Replying to Jason Croke:
avatar
By User deleted
12th May 2021 12:22

Thanks.
We have sent already few invoices to the customer, but they haven't paid VAT on them, so I just wanted to double check. Thanks again, much appreciated.

Thanks (0)