Sole trader work on a UK contract - VAT

Daawaa

Hi!

I am currently talking with 2 companies based in the UK about a fixed term software development contract. I am a sole trader registered for VAT.

One company has offices in the UK only the other company has its main office in UK (main place of supply of service) and a smaller, satellite company based in Spain.

I have been informed that I do not have to charge VAT to a UK company, as I am providing services to a registered business outside of the EU.

What liability for VAT exists in both instances? Does it make a difference that the second company has a smaller studio based in the EU for VAT implications?

Are there any other tax implications in remote working for a UK company from Ireland?

I am looking for second opinions and/or first hand experience here.

Thanks!

Citrus_8

First company is UK VAT chargeable if they are not tax exempt. To charge UK VAT you probably need to register with a UK tax office. For goods exports you wouldn't charge VAT as the customs would do that, but for services is different.

Second company, depending on vendor's registration office address, you charge Irish or UK VAT.

Bear in mind Vat thresholds for Vat registration obligations.