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Register for VAT and tax in Eire?

I have a client who will be working in Dublin for 6 months earning £2000 per month, travelling home to UK at weekends. His role be as IT consultant, all expenses paid locally by client. What responsiblities does he have for Irish VAT and Irish Income tax? He will raise invoices from UK and has no other trade.

Alternatively could I employ through my consultancy and bill the Irish client on his behalf (accepting the commercial liability issues)?
Steve Gregory

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04th Jan 2005 09:36

Will not need to register for VAT in Ireland
Dealing purely with the VAT aspect, your client may not be required to register for VAT in Ireland.

Whilst the previous poster was correct that the place of supply is deemed to be in Ireland, consultancy services are "reverse charge" services.

Unless your client is deemed to have a place of establishment in Ireland he will not have to register. Instead he will issue UK invoices without VAT. His client must then account for the output VAT due through its Irish VAT return.

Regards

Paul Taylor
VATease - VAT Advice

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29th Dec 2004 17:04

VAT but no income tax
Are you sure your client will be self-employed? It seems he has a full time contract for 6 months, with a fixed monthly payment. This is a matter of Irish law, but if it is similar to UK law, it could well be employment. For employment, Irish income tax but obviously no VAT.

If this is self-employment, the client will have to register for Irish VAT as the place of supply of his services will be Ireland, even though the value of the services will be quite low. Unlike the UK, there is no turnover threshold below which registration is not required. As there is no UK trade, then the self-employment will be an Irish trade, and Irish income tax will be due.

Check www.revenue.ie for registration etc.

Employment by you would not affect the VAT. It would however create NIC liabilities. Do you want this?

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