VAT registration - services outside of EU only

linola_c

Hi guys

I have a self employed business, where I provide legal services exclusively to a company in Australia. Last year, I hit the threshold for VAT registration in October. This year, I am employed full time so I won’t be making near what I made last year.

I understand that the supply of my services is not subject to VAT. I didn’t register for VAT in October and I’m now worried that I should have and could face fines because I did not? This seems crazy though as I wouldn’t be charging VAT. I have very very few VAT-able expenses so I wouldn’t be claiming and refund either.

Has anyone any thoughts on this?

Thanks

fankity flank

My understanding of the legislation is that your sales to Australia would be considered outside the scope of Irish VAT. Therefore this income should not count towards the registration threshold for VAT.

I could be wrong, but the deemed place of supply should be Australia, therefore no Irish VAT applies.

As long as the legal services did not pertain to any property fixed in Ireland, then I think you're safe.

adrianw

fankity flank wrote: »

My understanding of the legislation is that your sales to Australia would be considered outside the scope of Irish VAT. Therefore this income should not count towards the registration threshold for VAT.

I could be wrong, but the deemed place of supply should be Australia, therefore no Irish VAT applies.

As long as the legal services did not pertain to any property fixed in Ireland, then I think you're safe.

Just to provide a second opinion I am a chartered tax adviser and would agree 100% with the above that the services are outside the scope of Irish vat and would not count towards your threshold.