Please Help - Charge tax for services?

infoinfoinfo

Hi guys,

Would anyone please help me with this?

I am a sole trader (no VAT registered) and provide advisory service to company in the EU, not in Ireland.

Let's say they pay me 500 monthly. Should I send them invoice for 500+23% and then pay the VAT back here in Ireland? If so, once per year only?

Or should I only invoice them 500 and that is it?

Sorry, if it is silly question. Could not find straight answer.

Many thanks to whoever can help me!

adrianw

infoinfoinfo wrote: »

Hi guys,

Would anyone please help me with this?

I am a sole trader (no VAT registered) and provide advisory service to company in the EU, not in Ireland.

Let's say they pay me 500 monthly. Should I send them invoice for 500+23% and then pay the VAT back here in Ireland? If so, once per year only?

Or should I only invoice them 500 and that is it?

Sorry, if it is silly question. Could not find straight answer.

Many thanks to whoever can help me!

Firstly, If you're not VAT registered you don't charge VAT.

Secondly, even if you were, Irish VAT would not apply. The recipient would self account for VAT in their home country.

So invoice for EUR500.

infoinfoinfo

And I will then have to pay tax on the 500? Would I pay VAT on that or other tax?

If I do, I would have to invoice for 615 to cover my taxes?

Thank you!

relax carry on

infoinfoinfo wrote: »

And I will then have to pay tax on the 500? Would I pay VAT on that or other tax?

If I do, I would have to invoice for 615 to cover my taxes?

Thank you!

You are not VAT registered so forget about vat. Any income you have must be declared to Revenue in youe Annual tax return. Are you registered for Income Tax?

Ally Dick

If you charge over 33k per year for services, then you must register for VAT. You then charge and pay VAT. Under that amount of income, you don't have to

<Please ignore above. Not correct>

Alan Shore

Ally Dick wrote: »

If you charge over 33k per year for services, then you must register for VAT. You then charge and pay VAT. Under that amount of income, you don't have to

The threshold is €37,500 and the OP is involved in foreign supplies so may not have to register.
http://www.revenue.ie/en/tax/vat/guide/registration.html#section2

OP as pointed out if you're not VAT registered then you can not charge VAT. If you want to get the VAT back on your purchases then register.

infoinfoinfo

Thanks for the answers. I will be registered for Income tax once I register as Sole trader.

I am trying to find out, what would be the income tax % I will have to pay. Because, I should get 500 net for myself. If i haev to pay tax on that, say 20% - they i will ask for 600. So that I am left with 500 after tax.

How much do i have to pay the income tax once per year?

Thank you! Big help!

Alan Shore

We don't have a flat rate of income tax.

But say your profit was €34000 then your tax bill would be €7,000. For every €1,000 in income above that, you pay another €495 in tax.