VAT Reverse Charges

[radarr]

I am starting as Freelancer IT Contractor and have set up my new UK based company. My UK accountant is going to set me up for VAT flat rates. However, my first contract is in Ireland. The accountant has advised me to seek VAT advice from an accountant in Ireland.
I understand that I do not have to invoice my client with the VAT amount as he is the member of the EU country and one can invoke the reverse charge clause on the invoice.
However, being novice in this area, I really do not know what to do. I can not afford to have two accountants one for UK and the other for Ireland.
Does that imply that I do not have to register myself for UK VAT? If yes, should it be advisable to go for Flat VAT rate and end up paying VAT on my annual earning even though I have nothing to report on as I will not have any major VATABLE cost during the year.
Alternatively should I just register myself for normal VAT arrangements and declare zero VAT return every quarter?
I'll appreciate if somebody could provide me a sample invoice layout with the Reverse VAT charges clause or if somebody with the similar situation could advise me the best course of action.
Regards,
R

 

[extopia]

If you are a UK VAT-registered company, your overseas EU customers do not have to pay VAT on your services, provided the Irish client is VAT registered.

You would ask your client for their VAT number and, presumably, include it on your invoice.

You haven't said it specifically - but are you resident in the UK? If you're normally resident in Ireland but invoicing through a UK company, well, I don't really know what the situtation would be.

 

[radarr]

If you are a UK VAT-registered company, your overseas EU customers do not have to pay VAT on your services, provided the Irish client is VAT registered.

You would ask your client for their VAT number and, presumably, include it on your invoice.

You haven't said it specifically - but are you resident in the UK? If you're normally resident in Ireland but invoicing through a UK company, well, I don't really know what the situtation would be.

Many thanks for the quick response.
Yes, I am UK resident and will be travelling to Ireland every week(Mon-Friday) for next 6 months.
Though I have recently formed UK company but have been advised by the UK accountant not to register for VAT in UK.
Does that imply that I have to register in Ireland or just quoting of Customer VAT number on the invoice be sufficient?

 

[ubiquitous]

Many thanks for the quick response.
Yes, I am UK resident and will be travelling to Ireland every week(Mon-Friday) for next 6 months.
Though I have recently formed UK company but have been advised by the UK accountant not to register for VAT in UK.
Does that imply that I have to register in Ireland or just quoting of Customer VAT number on the invoice be sufficient?

If you are UK resident and running a UK-registered company you are really wasting your time looking for advice here as very few if any of our contributors will be in any way familiar with cross-border VAT issues from a UK perspective. You really need to ask your UK accountant to deal with the queries you have set out above.

If as you say you cannot afford to pay another accountant for Irish tax advice, then you really have to question why you are proposing to take on work in Ireland in the first instance. You would need some sort of premium over and above what you can earn on UK work to justify the extra tax complications & paperwork not to mention the currency difference.

 

[deem]

I think I would actually consider changing accountant in the UK.

Why have you now been advised not to register for VAT, The test rearding turnover, will apply regardless of where turnover is to. If your customers are likely to be VAT registered in Ireland and UK I would register for Uk VAT and submit nil returns if turnover to ireland and submit vat on turnover to uk.

If necessary get advise from some one who can advise on both situations, especially at the beginning