0 rate

KAZ0077

Hi,
Just a quick question.
I am self employed, and do work for a company in Northern Ireland as a consultant in the ROI.
I invoice the company in the North @ 0% VAT rate, even though the work is carried out by me in the Replublic.

Is this the correct way to do things, as i am VAT registered in the Republic I am under the mpression it was?

dbran

Hi

It depends on the type of consultancy that you do. However most consultancy that is internationally traded is classified as a "4th schedule" service. This means the place of supply is in the area where the service is performed. In your case this in "Norn Ireland". You are therefore correct to invoice at zero rate Irish VAT and the NI company accounts for the VAT on a reverse charge basis. This means that they charge themselves VAT and at the same time allow themselves a deduction for the VAT suffered (if they are carrying out a Vatable service)

In the unlikely event it is not deemed a 4th schedule service then you would charge them Irish VAT.

Regards


dbran

KAZ0077

Hi,
It's architectural services, like dealing with customers and site visits and some design work.

dbran

Hi

I believe if it is a service which is connected with immovable goods ie property, then it is not a 4th schedule service.

The place of supply is where the property is located and you should register and charge UK VAT if the level of sales is over the threshold for registration in the UK.

Kind Regards

dbran

KAZ0077

Ok, so until i reach the threshold I am ok to charge VAT at 0%?

To be honest, I wouldnt get near the threshold, I prob do maybe €25k-30k euro max per year with them.

dbran

Yes, I believe so.

KAZ0077

Cheers, coz i was crapping it that i hadnt charged and therefore paid over the VAT correctly. (ie charged as 0% not the 21.5%).

Thanks again,