VAT and invoicing US company?

Kernel32

I am coming back to Ireland from the United States to start a contract there. My accountant is taking care of the LLC, but he has jetted off on his holidays and I have a question about VAT I can't seem to get an answer too.
He explained to me that when I invoice the company I am contracting for I must charge VAT (21%?) and then pay the government every 2 months. I am also going to continue to do some work for my employer in the United States and I have been talking to them about how we set up the payment. I am trying to convince them to keep me as an hourly 1099 in the United States which would help me tax wise I think as I would pay US tax on that, but they are leaning towards having me bill them from my LLC which means I would pay Irish tax on any of that money that I pay to myself in salary.
But, do I charge them VAT? I don't see why I should have too, they have nothing to do with Ireland, any help or helpful links would be great.

Victor

Originally posted by Kernel32
But, do I charge them VAT? I don't see why I should have too, they have nothing to do with Ireland, any help or helpful links would be great.

I do think you need you accountant's advice here, but whether you charge VAT or not is downm to where the product / service is delivered. If you make widgets and deliver them to your client in the USA, then you don't charge them VAT. If you merely design / manage / whatever widgets, then it is a little fuzzier as to where the product is delivered.

Have a browse of www.revenue.ie

Kernel32

I am not sure if what I doing is considered service or a product. In this situation I would doing software development for them, which I would consider a service, but I would be using their hardware through a VPN connection and delivering all work to their systems, the actual product, the source code would be delivered to them in the United States.
I am sure this must not be a unique case so I am hoping my accountant can clear up my questions soon.

sceptre

Ring the Revenue directly and ask them. Your accountant will eventually do the same but he'll be charging you by the hour to do it.

(it's a specific question that they'll give a specific answer to)

antoinolachtnai

yes, you should ring the revenue, but if they say you have to collect VAT, you are going to look ridiculous in front of your client. The US company has no way of getting a refund on the VAT you collect, unless they set up a branch in Ireland, and I'm sure they're not going to do that.

Personally, when I have invoiced to the US before, I have never charged VAT, on the basis that the service was being delivered to a person wholly outside the State.

But it would be worth ringing the Revenue and asking. Be sure to report back.

Kernel32

Well I emailed the revenue twice with no reply. I called last week and I don't have to charge VAT to my client in the US. I also complained to them about the lack of response to my emails, when they asked what email address I used I said the one from the website which is vatinfo@revenue.ie , I was then told that was the wrong email address, so I asked what is the correct one, the answer was they didn't know but would get back to me, thay haven't gotten back to me and I won't hold my breath.