IT Consultant / Support - Confused on what VAT to charge

JohnCleary · 04-12-2018 10:26PM #1

Hi all,
This came up in another thread I started, and hoping for clarification....

I define myself as an IT Consultant, however, the work differs from what can certainly be defined as consultancy, to the most basic IT support / Computer repair.

So, in that case, would it be normal to charge 2 VAT rates, depending on what i'm doing on the day?
Day 1: I'm consulting, designing a new network, costings etc - 23% VAT
Day 2: I'm out fixing some PC's (to keep it on basic terms) - 13.5% VAT

As a practical example, certain organisations pay me X amount (Fixed - It's a Service Level Agreement) per month for "IT Support" (not consultancy, essentially keeping things ticking over) - so that should be 13.5%?

Stanford · 04-12-2018 10:28PM

Do you build or sell anything physically?

JohnCleary · 04-12-2018 10:31PM

Stanford wrote: »

Do you build or sell anything physically?

I don't build. There will be some (very little) re-sale of goods, and i'm aware that this is 23%. Disregarding the 2/3 rule etc... (All hardware would be a separate Invoice, as the contract I have with clients for "IT Support" includes installation of hardware)

Stanford · 04-12-2018 10:34PM

On the basis that you sometimes need to apply the 2/3 rule then IT Support would attract the 13.5% rate as the supply of a Professional Service

JohnCleary · 04-12-2018 10:36PM

Stanford wrote: »

On the basis that you sometimes need to apply the 2/3 rule then IT Support would attract the 13.5% rate as the supply of a Professional Service

Cheers. I think what i'll be doing regarding VAT options is:
Labour 13.5
Consultancy 23
Sales 23

Does that make sense?

Stanford · 04-12-2018 10:38PM

Consultancy would normally attract 13.5% as a professional service

https://www.revenue.ie/en/vat/vat-on-services/services-taxable-at-the-rate-of-the-goods-the-two/index.aspx

Stanford · 04-12-2018 10:41PM

Sorry 23%, my mistake

relax carry on · 04-12-2018 10:42PM

Stanford wrote: »

Consultancy would normally attract 13.5% as a professional service

https://www.revenue.ie/en/vat/vat-on-services/services-taxable-at-the-rate-of-the-goods-the-two/index.aspx

Nope

https://www.revenue.ie/en/vat/vat-rates/search-vat-rates/C/consultancy-services.aspx

Edit: see you'd already corrected above.

Stanford · 04-12-2018 10:48PM

OK, might as well check with an Accountant or Revenue themselves to make sure you don't over or under-estimate the VAT, save yourself grief if you are ever queried by a client or audited

JohnCleary · 04-12-2018 10:54PM

Stanford wrote: »

OK, might as well check with an Accountant or Revenue themselves to make sure you don't over or under-estimate the VAT, save yourself grief if you are ever queried by a client or audited

Will give them a call in the morning to be sure.

IT Consultant / Support - Confused on what VAT to charge

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