# Invoicing Vat Exempt Company



## A99

Hi;

I need to invoice a vat exempt company I am doing consulting for & I am unsure how to deal with vat on the invoice. My agreed rate is ex vat & I know I cant charge vat but on my standard invoice do I show vat a 0% rate, or leave vat out or write exempt, or must I attach their vat exempt cert to my invoices at year end ? or is it as simple as, for example ;

Prof. Fee 100 Euro
Vat @ 0% = 0 Euro
Total = 100 Euro

This is my first time dealing with a vat exempt company.

Thanks in advance.


----------



## z101

You need documentation from them to show why they are VAT emempt. You have to show zero vat rate on invoice and keep a copy of their VAT emempt form with it. The doc they will have to give you a copy of is from the tax office (Cant remember the title of it). They must have this if they are an Irish company that are VAT exempt. If they are from another EU country you need their VAT number from that country which can be verified.


----------



## Silvergirl

Evening, 

It's called a Vat 13B form.

You need a copy of theirs for your records should you ever be audited, and you should note their auth number on your invoice.

If you are doing on-going work for them you should keep an eye on the expiration date as they are only granted for set periods eg a year, and need to be renewed with revenue.

http://www.tcd.ie/Treasurers_Office/acreceivable/acr_othertaxissues.php

Above link can probably explain this better than I can.

HTH.


----------



## A99

Thanks to you both for a quick & clear reply.


----------



## Crugers

See
http://www.revenue.ie/leaflets/vat_zerorating_section13.htm


----------



## milan

If I do work for a company based up north do I need a copy of their Vat certificate?


----------



## runner

No, dont think so. Only applies to companies wihin the state.


----------



## Martinslan

We are a "vat exempt"M.N.  And all our suppliers ask and get a copy of our vat cert for their files. (to show in case of a vat audit)  On your invoice you just show the rate as zero, otherwise the invoice is like any other.


----------



## Caveat

milan said:


> If I do work for a company based up north do I need a copy of their Vat certificate?


 
No, but you need to quote their VAT no. on any invoices/parcels - you can verify beforehand that it is a valid VAT no. by using this site.

http://ec.europa.eu/taxation_customs/vies/vieshome.do?selectedLanguage=EN


----------



## xxx

Even if a business is vat exempt you still have to charge them vat as far as i know.


----------



## Caveat

xxx said:


> Even if a business is vat exempt you still have to charge them vat as far as i know.


 
*This is wrong.* 

Silvergirl above has supplied the relevant points for the ROI.


----------



## Graham_07

xxx said:


> Even if a business is vat exempt you still have to charge them vat as far as i know.


 
There may be some misunderstanding in the thread between 

(a) businesses which hold "VAT exemptions" i.e. which are not charged VAT and

(b)  businesses which are carrying on "VAT exempt" activities i.e. which do not charge VAT due to the nature of their business. ( which is not the same as selling 0% VAT goods by the way ) 

1) Businesses in Ireland holding Section 13B authorisations are not charged VAT ( as already stated above )

2) Business outside the state, but within the EU are "zero rated" once you have the customer's VAT number ( again as already stated above)

3) Businesses in the state which carry on "VAT exempt" activities, such as Taxi's undertakers, travel agents, are charged VAT as normal by their suppliers.


----------



## Caveat

Graham_07 said:


> 3) Businesses in the state which carry on "VAT exempt" activities, such as Taxi's undertakers, travel agents, are charged VAT as normal by their suppliers.


 
xxx, My apologies if this is what you were referring to


----------



## milan

Ok thanks all for the replies, So I just have to check out their Vat number and quote it on the invoice. 

Many thanks


----------



## z101

For the company in the North ask for their UK VAT number for your records. I would put it on the invoice


----------



## Graham_07

Ceatharlach said:


> For the company in the North ask for their UK VAT number for your records. I would put it on the invoice


 
Before zero rating any supply to an other EU member state you MUST satisfy yourself that the customer is entitled to benefit from zero rating by verifying their VAT number. AS has already been said by Caveat above you can verify their number here

If you zero rate a supply and do not have adequate proof of entitlement to do so you face the responsibility to Revenue for the VAT which you ought to have charged. 

Get the number, verify it and put it on the invoice.


----------



## f.76

I book invoices for a company that benefits of the VAT exemption form 13B, so I expect to receive invoices with VAT rate zero %.
What happens is that I recieve many invoices charged with VAT, instead. 
All the invoices that I receive have been paid already as the employees use P-Cards for their purchases.
I believe that all those invoices are wrong, and the VAT should not be charged, based on the form 13B. Nevertheless I am wondering if there are specific supplies, that can be considered exceptions to the 13B; it will follow that, even if the company is in exemption (13B), should pay the VAT for these specific services/goods. Could you please help?


----------



## Woodie

The following should be the case as from the application form 13A;
Note 2
The provisions of Section 13A VAT Act 1972 will apply in the case of all goods and services with the
following exceptions:
(a) certain motor vehicles and petrol,
(b) services consisting of the provision of food and drink, the hire of certain motor vehicles,
accommodation, entertainment, and other personal services.

See also http://www.revenue.ie/en/tax/vat/leaflets/zero-rating.html

In practical terms people often invoice VAT exempt companies no mater how many times you tell them not to.  The only way to resolve is move supplier or submit a VAT return as normal.  If there is any sales to client business carried out by the company in Ireland then this would be a necessity in any case.


----------



## f.76

Thanks, the info is very useful.


----------

