Accounting for VAT on US service import

Dum_Dum

I believe the transaction should be VAT neutral. Example:

€1000 invoiced by US supplier and paid to US supplier during last VAT Period:


(A) Self account for VAT@21% = €210 (owed *to* Revenue)

(B) Credit = €210 (owed *by* Revenue)

(C) Result (210)+(-210)= €0

Is this accounted for on the VAT3 return? Should (A) be included in T1 and (B) in T2?

Thanks

angelfire9

I'm confused!
If you are registered for VAT in Ireland you should not be paying VAT for goods purchased in the US so there is no VAT3 implication, you will need to record the transaction on your annual return of trading details alright but not the VAT3 see http://www.revenue.ie/leaflets/it49.pdf for further info

kluivert

With Services it depends where the Service was carried out.

If the US company carried out the service in Ireland then they should charge you Irish Vat.

angelfire9

kluivert wrote: »

With Services it depends where the Service was carried out.

If the US company carried out the service in Ireland then they should charge you Irish Vat.

A US Company would have to be registered for VAT in Ireland to charge you VAT or for you to charge them VAT if they are not registered there is no VAT3 implication

Dum_Dum

In:

http://www.revenue.ie/pdf/e_commerce/e_commerce.pdf

p. 37 Table "3"

the applicable row in the table is the last. It indicates the use of the Reverse Charge mechanism - i.e. charge yourself VAT@21% then credit it back. It's not clear whether this ought to be accounted for in VAT3 for non-EU imports - whereas for EU imports it clearly is accounted for in box E2.