Vat on IT services to UK Company

R

RugbyBoy

Registered User
Messages
146
Hi,

I will shortly be dong some consultancy/software development for a UK company.

The bulk of the work will be done remotely so I belive that I do not need to charge vat on the work. Is that correct?

Also initally I will be on site in the UK for a few days do I need to charge on this work?

Thanks in advance

RB
 
So long as you have their vat number and display it on the invoice aling with your own vat number you dont need to charge vat
 
HI

I believe that IT services, consultancy or electronic services are classified as 4th schedule services.

Therefore the place of supply is in the place where the service is located. Therefore no Irish VAT arises and you dont charge Irish VAT but the service is zero rated. The so called reverse charge applies and the uk customer must charge themselves UK VAT but they are entitled to an input credit for this UK VAT in the normal way.

You must obtain the customer's VAT number as evidence that they are a business and you must state on your invoice, the customers VAt number and that the reverse charge mechanism applies to this transaction.

Further information is available here [broken link removed]

Hope this helps


DB
 
Hi DBRan,

Thanks for the info.

Do I charge VAT on few days work I do in the UK ?

RB
 
No

Your UK services are zero rated for Irish VAT.

The customer must charge themselves UK VAT but also gets a credit for it on his UK return.

DB
 

DB, I'm sure there a section in the Revenue (or maybe Inland Revenue) that the UK Vat number then has to be confirmed with?... Do you know where it is?

Also, does the above still apply if the services are supplied to US companies?
 
Last edited:
Hi Billythefish

You are correct and it is paragraph 18 of the link which says you must get the customers VAt number [broken link removed]

If your customer is not a business customer then you must charge Irish VAT. So you need to check if the number is a valid number.

If it is service supplied to the US (business or private) then it is again zero rated for Irish VAT . Again see the summary table in the above link for guidence.

DB
 
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