Sole Trader and US "work made for hire"

ShellArtist

Hi Guys,

I want to become Sole Trader (self emplymend).

I will be working as Comics Book artist for US based Companies. Here are my questions :

1. They Send me "Voucher and work made for hire agreement" and "COMPANY NAME Services Agreement", is that fine for Sole Trader or I should send them ALSO my invoice? Or I keep it only for Revenue. What I do with that kind of "agreements" ? It's sounds like "self invoice" from US companies.

2.They pay in US Dollars. What should I do?

3. I rent appartment, this is where I work from, I don't buy any supplies, I draw on my computer. Should I register for VAT? and I should put VAT in invoice? We expect to make 70.000 euros per year.

4. What tax we will be paying?

Please, help me out guys.

dbran

Hi Shell Artist

re your questions

1) If you wish to register as a sole trader for income tax purposes you shoudl complete form TR1 and return it to revenue. Go and do a search for it in www.revenue.ie

2) Lodge it

3) I would not register for VAT as there dosent seem to be any benefit other then an extra set of forms for you to complete. This is based on the fact that you have no additional vatable costs and your income does not go beyond the threshold for registration for services of €37.5k per annum.

If you do decide to register for VAT then as your customer is established in the US the place of supply is the US, therefore you would not add vat to your invoice in any case.

4) Income tax.

Hope this helps.

Kind regards

dbran

ShellArtist

Thanks Debran! That helps alot :

I still got question :

I draw books/comics book for US Companies. They send me their vouchers/service agreements (self-billing? self-invoices?)

Lets say I will be making 5.000 euros each month.

In year, it's 60.00 Euros.

I don't send invoice. I only Sign their vouchers and keep my copy for me for Revenue?

So... should I register for VAT? They don't put VAT or anything on their services agreements.

dbran wrote: »

Hi Shell Artist

re your questions

1) If you wish to register as a sole trader for income tax purposes you shoudl complete form TR1 and return it to revenue. Go and do a search for it in www.revenue.ie

2) Lodge it

3) I would not register for VAT as there dosent seem to be any benefit other then an extra set of forms for you to complete. This is based on the fact that you have no additional vatable costs and your income does not go beyond the threshold for registration for services of €37.5k per annum.

If you do decide to register for VAT then as your customer is established in the US the place of supply is the US, therefore you would not add vat to your invoice in any case.

4) Income tax.

Hope this helps.

Kind regards

dbran

ShellArtist

Also I should not make invoices since they send me their Voucher and Services Agreement and I sign them, they send me back their copy and this is for Revenue?

ShellArtist wrote: »

Thanks Debran! That helps alot :

I still got question :

I draw books/comics book for US Companies. They send me their vouchers/service agreements (self-billing? self-invoices?)

Lets say I will be making 5.000 euros each month.

In year, it's 60.00 Euros.

I don't send invoice. I only Sign their vouchers and keep my copy for me for Revenue?

So... should I register for VAT? They don't put VAT or anything on their services agreements.

dbran

Hi

You are only supplying services to a customer who is established outside the state. The place of supply for VAT purposes is therefore outside the state. You do not have to register for VAT. It dosent mater the level of turnover in this case.

See near the bottom of the link below

http://www.revenue.ie/en/tax/vat/registration/index.html

You can register for VAT if you wish in order to reclaim vat on your costs but if you do so you must not charge the US company VAT.

Hope this helps

dbran

dbran

ShellArtist wrote: »

Also I should not make invoices since they send me their Voucher and Services Agreement and I sign them, they send me back their copy and this is for Revenue?

This copy should be all you need. Keep it for your own records in case of a revenue audit.

Kind Regards

dbran