Vat on services outside EU

barrymunster

If I have a company registered in Ireland and 90% of my sales are services to business customers outside the EU and if my turnover is projected to be 50,000 do I exclude 90% of my sales in order to determine whether I satisfy the 37500 threshold or not . Assuming I don't have to register for vat in Ireland if the remaining 10% of sales is to business customers within the EU ( including Ireland) I presume they don't qualify as intra eu supplies of services because I have chosen not to vat register? Any advice welcome

Johnmb

barrymunster wrote: »

If I have a company registered in Ireland and 90% of my sales are services to business customers outside the EU and if my turnover is projected to be 50,000 do I exclude 90% of my sales in order to determine whether I satisfy the 37500 threshold or not . Assuming I don't have to register for vat in Ireland if the remaining 10% of sales is to business customers within the EU ( including Ireland) I presume they don't qualify as intra eu supplies of services because I have chosen not to vat register? Any advice welcome

You still have to register for VAT as you are over the threshold, it doesn't matter where the sales are to. However, any export sales outside the EU would be taxed at 0%, so there'd be no extra cost to your clients, and you get to reclaim the VAT on any Irish supplies, as well as avoid paying VAT on any intra EU supplies. Also, if such a large proportion of your sales are outside the state (75% or more to EU and/or outside the EU) causing you to be constantly in a VAT refund situation, you can apply for a Section 56A registration meaning you get to charge 0% VAT on all your sales (including any to Irish customers) and you get a letter from Revenue to pass on to your Irish suppliers telling them to only charge you 0% VAT on your supplies. From a cashflow perspective, that can be very useful, although there's no way out of the admin requirements of making the VAT returns.

barrymunster

Thanks very much John. Do I also have to register for vies and/or intrastat as all sales will be service based?

Johnmb

barrymunster wrote: »

Thanks very much John. Do I also have to register for vies and/or intrastat as all sales will be service based?

No registration is needed for Intrastat returns, but VIES returns will be required if you provide any services to other VAT registered EU businesses and charge the 0% rate.

barrymunster

Thanks John. So there is no turnover threshold re Vies registration before vies registration is required.