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Q: Client is UK VAT registered and is based solely in Northern Ireland.They sell vans and bought a van from another dealer based in Northern Ireland for £20k plus £4k VAT. They have found a buyer in the Republic of Ireland who they intend to sell to on a Business to Consumer basis for £25k.They will deliver from their base in Belfast, NI to the consumers address in Dublin, ROI.This is the first sale from NI to the ROI they have made this calendar year. Do they have to charge UK VAT?

A: No. If the NI dealer sells and delivers the van from NI  to ROI for say £25k  then they have exceeded the "Distance Selling threshold" of £8818 (10k euros) and so the Place of supply of the goods moves to where the consumer belongs and as a Non Established Taxable Person in the ROI, the NI business, will have to VAT register in the  ROI and account for VAT on this supply in the ROI . No VAT will be due in the UK as explained in chapter 6 of Notice 725.

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