VAT or zero VAT

psca

Hi all
I am looking for some clarity on the following.
A company in the UK has customers in Ireland (it is a service company with service contracts and repair call-outs on equipment).
I am setting my self up as a Sole trader Vat registered based in Ireland.
The UK Company wants me to carry out some work for them in Ireland and invoice them for my labor. (The UK Company supply all parts required for any work carried out).
When invoicing the UK Company do I charge VAT or is it zero rated.
Any help would be greatly appreciated.

thesteve

psca wrote: »

Hi all
I am looking for some clarity on the following.
A company in the UK has customers in Ireland (it is a service company with service contracts and repair call-outs on equipment).
I am setting my self up as a Sole trader Vat registered based in Ireland.
The UK Company wants me to carry out some work for them in Ireland and invoice them for my labor. (The UK Company supply all parts required for any work carried out).
When invoicing the UK Company do I charge VAT or is it zero rated.
Any help would be greatly appreciated.

If you're providing a service outside of Ireland, its zero rated.

psca

Thanks for the reply thesteve.

The work will take place in Ireland on the UK Companies machines.

thesteve

psca wrote: »

Thanks for the reply thesteve.

The work will take place in Ireland on the UK Companies machines.

Ah, so you are manufacturing something. I get your point but am not an expert on this level of detail of VAT compliance

psca

Sorry i meant to say The work will take place in Ireland on the UK Companie's customer's machines.

psca

No manufacturing just repair and servicing of the equipment

writhen

I would think you would invoice them your rate plus vat. They should then be able to claim it back from their tax authorities.

dbran

Hi

Where a service is being supplied, "business to business" the place of supply for VAT purposes is where the recipient of the service is situated. In your case, this is the UK.

Therefor provided that you get the VAT number of the UK customer you must not charge Irish VAT to the UK customer.

The UK customer must self account for the VAT on their own VAT return via the reverse charge mechanisim.

Hope this helps

dbran

barneystinson

writhen wrote: »

I would think you would invoice them your rate plus vat. They should then be able to claim it back from their tax authorities.

I would suggest if you "think" things like this you shouldn't be dishing out tax advice...! How would you suggest a UK company would reclaim Irish VAT from HMRC?

Dbran has set out the correct treatment.

writhen

barneystinson wrote: »

I would suggest if you "think" things like this you shouldn't be dishing out tax advice...! How would you suggest a UK company would reclaim Irish VAT from HMRC?

Dbran has set out the correct treatment.

Chill.....thought it was similar to my own situation. Misread the OPs original post. That's all..... Simple mistake.......

Mr. G

Consult your accountant or the authorities if your not sure.

Your providing the service in Ireland. I remember something about getting the uk business' vat number, filling some form and than we wouldn't have to charge the vat to them. Otherwise, because their in the european union, the uk business can claim on the vat you have charged anyway, the end result is the same they wouldn't have to pay the vat as its a business expense.

dbran

Hi

You must not charge Irish VAT as such a supply is not within the scope of Irish VAT and is therefore wrong.

The UK VAT authorities are not going to refund Irish VAT. Even if you go via EVR the Irish Revenue may not allow the refund as it is VAT that should not have been charged in the first place.

The correct solution and the place of supply rules for services are set out below

http://www.revenue.ie/en/tax/vat/leaflets/place-of-supply-of-services.html

Hope this helps

dbran

psca

Thanks all for the replies.
Just to clarify
Even thought the service provided is carried out in Ireland, but it is for a UK customer then I should not charge them VAT.
They will account for it in the UK under the reverse charge system.
Again many thanks.


Paul