Vat outside Eu

sallyp

Hi Guys

Quick one for you.

Im providing a service for a client outside the EU. The service will be done in Ireland and emailed to the client. The client is registered for Vat in his own country. As its outside the EU do I need to charge him irish Vat?

Thanks

Mr. Incognito

There is no VAT outside the EU- you are exporting a service. No VAT applies unless it is a 4th Schedule service which are taxed where they are received and Irish VAT would apply- what's the service?

sallyp

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Mr. Incognito

http://www.revenue.ie/en/tax/vat/leaflets/fourth-schedule-services.html#section2

(3C) Electronically supplied services;

Supply of Fourth Schedule Services to a business customer outside the State
16. When an Irish business supplies a taxable Fourth Schedule service to a business customer established in another EU Member State or outside the EU, there is no liability to Irish VAT i.e. they are effectively zero rated. In such cases the place of supply is deemed to be the place of establishment of the recipient. Where the customer is established in another EU Member State, VAT is accounted for in that Member State. Where the customer is in business in another Member State but is not registered for VAT, the Irish supplier of Fourth Schedule Services should still apply the effective zero rate of VAT to the supply.

17. When an Irish business supplies goods or services outside the State only they are not required to register for VAT but are entitled to a repayment of input VAT in accordance with Section 12(1)(b) of the VAT Act. In practice, an Irish business whose supplies consist only of Fourth Schedule Services outside the State is permitted to register for VAT and to reclaim input VAT by means of the VAT return, subject to the normal restrictions.