VAT question

54and56

Apologies if this is simplistic but it's new to me.

I provide a professional service throughout the country via a Ltd company which is VAT registered and I charge my clients at the full 23% VAT rate.

I have now been asked to undertake a once off project on behalf of a department within the Welsh Government.

Before I put my foot in my mouth and look stupid should I be asking them for their VAT number so I can quote the VAT number on my invoice and hence invoice them ex VAT? Do Govt dept's typically have VAT numbers or is there legislation which effectively says if you are supplying a service to the public service/govt of another EU country it is always on an ex VAT basis?

Thanks for reading.

Lockedout2

They may have to register in relation to acquisition of services if not already registered.

http://www.revenue.ie/en/tax/vat/leaflets/state-procurement.html

54and56

Adrianw,

I got your PM thanks and tried to reply but your inbox is full so Boards won't let anyone send you a PM until you make space!!

Ref your question: The service is to assess and report on the condition of some specialist equipment located here in Ireland so I'll be performing the service here but my report will be issued to my Welsh client.

I think that means (for VAT purposes) that the service is being performed here and not in Wales.

Regards,

Ben

Timbo1987

i believe the Vat num for the customer is irrelevant as this is a service.
Place of supply is where the service is being performed = Ireland

I'd charge VAT if it were me

adrianw

Some local authorities will have VAT numbers for the purpose of services received from abroad. In Ireland the threshold is €41,000.

So if you do enquire with them, it would be a reasonable query.

The EU does try to ensure no company is disadvantaged due to its country of establishment. Therefore as the Irish VAT rate is 3% higher than the UK, this would give a UK company an unfair advantage.

If I were to guess I would imagine they will have a UK VAT number and therefore 0% Irish VAT will apply.

nompere

Timbo1987 wrote: »

i believe the Vat num for the customer is irrelevant as this is a service.
Place of supply is where the service is being performed = Ireland

I'd charge VAT if it were me

On the contrary - under VAT rules, B to B services (except those relating to land and buildings located in Ireland) are always deemed to be provided where the recipient of the services has its place of business.