Thursday, 17 December 2020
Department of Finance
Value Added Tax
I am informed by Revenue that ultimately the VAT revenue collected by the exchequer is the same whether goods are imported from a third country or acquired from another member state. When goods are acquired from another member state, the business that acquires the goods must account for the acquisition and for the subsequent sale, charging the VAT applicable to the goods in question and returning this VAT to Revenue.
Where goods are imported from a third country, the business importing the goods is liable for VAT at importation but can deduct this in their VAT return. The business then accounts for VAT on the sale of the goods and returns the VAT charged to Revenue.
In both cases the VAT collected and payable to Revenue depends on the sale within the State.