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VAT rate to charge on goods sold

Irish company holds both Irish & UK VAT registrations, what VAT rate is charged on sales to UK VAT

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Irish company has both UK & Irish VAT registration. Goods are sent from Ireland to UK.

UK VAT is charged on sales to non VAT registered customers.

Should UK VAT be charged on B2B sales also or should these be zero rated as intra-community?

Haven't been able to get a straight answer from HMRC.

I am an accountant but I don't work in accounts anymore, I work in IT. 

Replies (4)

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By paul.benny
09th Jul 2020 17:56

The normal B2B rules apply - ie zero rate intra-community despatches if the relevant conditions are satisfied - see VAT 725. Be careful if the seller holds stock in both countries.

For B2C supplies, the distance selling rules apply, so you have to register and account for VAT in the destination country if sales are above €35k (some member states have different thresholds).

There is plenty of detailed guidance on

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Replying to paul.benny:
By Outofpractice
09th Jul 2020 22:13

Hi Paul

Thank you for your reply. That's what I thought & told a colleague when they asked but they have come back with this GOV.UK guide

They are saying that this document means that because they are UK VAT registered they must charge UK VAT on all UK sales & account for them on UK return even their b2b sales of goods being sold by Irish company to UK company with goods originating in Ireland coming to UK.

I called HMRC and at first they said they are zero rated intra-community then said no you charge UK VAT.

I was of the impression they are zero rated and go on Irish VAT return.

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Replying to Outofpractice:
By paul.benny
10th Jul 2020 08:01

Your colleague's misunderstanding may be around place of supply: this is the place where the goods are located immediately before they are despatched to the customer - in your case Ireland.

You would only have to charge UK VAT if the goods were supplied from stock in the UK.

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By tom123
10th Jul 2020 09:38

We have a supplier who has both stock in the UK and stock in the EU.

We never know the VAT applicability of the invoice until the goods arrive, - makes setting up supplier defaults in our AP system a real pain.

Plus, every once in a while a non vatable invoice goes on with UK vat - and potentially overpaid to supplier.

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