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bigduckontax, Accountant
Category: Tax
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I am a VAT registered non motor dealer business in Ireland -

Customer Question

I am a VAT registered non motor dealer business in Ireland - I bought a passenger vehicle from UK and no VAT was charged - I am now selling this vehicle to a private individual in Ireland - do I have to charge VAT?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

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

Sales within the EU are standard rated supplies so VAT must be charged. If your customer is VAT registered in Ireland and you have their VAT or equivalent number then the Reverse Charge may apply. In this case the book keeping transaction is as follows: you credit output VAT with the tax on the car and immediately enter it as a debit input tax item thus effectively making it zero rated. Your invoice should quote both the VAT numbers. You will be required to make periodic EU Sales Lists Returns to HMRC.

Please don't blame me I didn't invent this crazy system.

I do hope that you have found my reply of assistance.

Customer: replied 1 year ago.
Sorry I think you may misunderstand - I am a vat registered business in Ireland - having bought a vehicle in Northern Ireland (UK) which would normally have been a margin scheme vehicle it was zero rated to my business in Ireland hence the reverse charge applied on the purchase of this as I understand - but if my business now sells to a private individual do I charge VAT at standard rate or on the margin? The sale is Republic of Ireland to Republic of Ireland so reverse charge doesn't apply to sale does it
Expert:  bigduckontax replied 1 year ago.

No indeed it does not! I would be inclined to charge the tax on the margin under the conditions set out in your question.