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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4348
Experience:  FCCA FCMA CGMA ACIS
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I'm a UK reseller company buying digital services from an

Resolved Question:

I'm a UK reseller company buying digital services from an irish company, to sell to my customers. I'm paying £30,000 for the service, but charging my customer around £60,000 + vat. Im struggling to understand if i'm charging enough to my customer to cover my costs, bearing in mind i can't reclaim VAT from my supplier as they are not UK VAT registered.
Submitted: 3 months ago.
Category: Tax
Customer: replied 3 months ago.
The service we are paying for is essentially a website that our customer can display on large screens to their audience. This is the best information i've found, but i need it translating into laymans terms http://www.brighton-accountants.com/blog/vat-uk-ireland/
Expert:  bigduckontax replied 3 months ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Of course you can reclaim the input tax from your Irish supplier. Inter EU transactions are usually standard rated supplies and input tax can be reclaimed. It happens every day.

I do hope that I have been ab;e to assist your cash flow with ,y response.

Customer: replied 3 months ago.
Hi Keith, the supplier is in southern ireland. Does the same apply? I was under the impression that the irish supplier wouldn't charge me VAT as it is a electronic delivery rather than a physical product?
Expert:  bigduckontax replied 3 months ago.

The Republic of Ireland is an EU member do if VAT is being charged by your supplier then it may be reclaimed.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 months ago.

Thank you for your support.