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Thread: Equipment sold to eu countries

  1. #1
    Junior Member
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    May 2013
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    Wales
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    Equipment sold to eu countries

    Hello I'm after some advice on selling a machine to southern Ireland. I have equipment for sale and have an Irish buyer interested in it he wants to put part ex something which I am interested in. I have outstanding finance on my machine and it's a zero VAT rate but looking at HMRC website because i have outstanding HP and usually I have sold things before where the customer pays the outstanding HP and pays the VAT and difference to me. Can i do it the same way and the part ex covers some of the difference after paying off the HP. Can any one help? HMRC have not been very helpful.

  2. #2
    Senior Member
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    Nr Swindon, Wilts
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    Re: Equipment sold to eu countries

    What do you mean by 'its a zero rate VAT'? Either you are exempt from vat (ie not registered and under the turnover threshold) in which case you never charge vat on sales, or you are vat registered, in which case machinery is standard rated, so 20%. If however you are selling a machine to a buyer from abroad (within the EU, different rules apply for outside the EU) , and the buyer is vat registered (and you need to get his vat number, and preferably confirm its a real one) then you don't need to charge vat to the buyer. They then have to pay the vat at the appropriate rate on arrival in their country. If the buyer is not vat registered in his EU country, then you have to charge UK vat which you pass on to HMRC in the usual way.

    As for the HP, I am under the impression you can't sell stuff with outstanding HP. It needs to be paid off first and then you have title that you can legally sell. If you sell without clearing the HP first the new 'owner' does not have a secure title, and can have the goods taken from them by the finance company.

  3. #3
    Junior Member
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    Re: Equipment sold to eu countries

    I mean as it's a eu sale then you don't charge VAT it's a zero rate. Customer is VAT registered in his country. I mean with the HP i get a settlement figure off the finance company then i invoice for the machine with a total value of the machine which states that the customer pays the settlement figure to the finance company and pays the difference to me. The title of the equipment does not change until payment has cleared.

  4. #4
    Senior Member
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    Re: Equipment sold to eu countries

    In that case it would be no different from if the buyer was in the UK. The EU is all one single market, thats the whole point of it - a buyer in Ireland is functionally no different from one in Wales. I would personally do the transaction as two separate invoices, one from you to him for your machine, and one in the opposite direction for the px machine. If you put everything on one invoice it could get a bit complicated. Of course there is the little matter of making sure the buyer pays the HP off..........

  5. #5
    Senior Member
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    Feb 2013
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    236

    Re: Equipment sold to eu countries

    I would talk to the finance company as it is them that has to sell the machine , the buyer pays them and you get the balance , thats what i did when I sold my class 860 , I found a buyer and the finance company invoiced him .

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