How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5180
Type Your Tax Question Here...
bigduckontax is online now

I'm a UK reseller company buying digital services from an

This answer was rated:

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.
Customer: replied 10 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

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 10 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?

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

Thank you for your support.