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Northern Ireland Company & VAT

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  • 22-02-2021 9:44pm
    #1
    gary550
    Registered Users Posts: 638 ✭✭✭


    Hello,

    I have a company registered here in Ireland that does 100% B2C trade and is under the threshold for VAT at the minute.

    An opportunity has arisen to deal with a Northern Irish company in a B2B capacity and I'm pondering the idea of setting up a seperate company in northern Ireland to deal with that business. This company would probably have to be vat registered as the most of the trading will be with another company who would need a vat receipt.

    Will I run into an issue with revenue by having my company here not vat registered and a company in NI that is?

    I know the simple answer is to ask my accountant but I'd rather have an idea about it before asking.


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    #2
    ahnowbrowncow
    Registered Users Posts: 2,564 ✭✭✭ahnowbrowncow


    Could be an issue if it's a shell company used for tax avoidance. What fixed establishment would the proposed company have in Northern Ireland?


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    #3
    tanit
    Registered Users Posts: 325 ✭✭tanit


    gary550 wrote: »
    Hello,

    I have a company registered here in Ireland that does 100% B2C trade and is under the threshold for VAT at the minute.

    An opportunity has arisen to deal with a Northern Irish company in a B2B capacity and I'm pondering the idea of setting up a seperate company in northern Ireland to deal with that business. This company would probably have to be vat registered as the most of the trading will be with another company who would need a vat receipt.

    Will I run into an issue with revenue by having my company here not vat registered and a company in NI that is?

    I know the simple answer is to ask my accountant but I'd rather have an idea about it before asking.

    The Vat situation in Northern Ireland has become extremely complex as even though the UK or GB as it is called now left the EU for Customs and Vat purposes Northern Ireland is still in, so Revenue is going to be extremely interested about your situation and the situation of your company. Everyone right now is looking at what goods are moving through NI and in which direction GB or EU (Ireland is part of the EU).

    I would highly recommend you to get expert advice because depending of the transactions taking place they are going to be treated differently and Vat in NI has become extremely complex. For this you are going to need very specialist advice, I'd go for a tax advisor or an accountant that is very well informed of how Vat now works over the border since Brexit.


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    #4
    DmanDmythDledge
    Registered Users Posts: 883 ✭✭✭DmanDmythDledge


    ahnowbrowncow wrote: »
    Could be an issue if it's a shell company used for tax avoidance. What fixed establishment would the proposed company have in Northern Ireland?
    +1. You can't just decide to register for VAT in a particular country. Using your Irish VAT won't be a major issue (from a VAT pov) if you have a decent tax advisor.


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