Eire and cross border VAT

Eire and cross border VAT

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We have a client who is established in the UK but whose business is 95% in Eire. 

They supply and fit windscreens with the goods coming from Eire but labour from NI. They have been instructed by the insurance co's in Eire that they must register for VAT in Eire. This would make them uncompetitive as the insurance co's also state that they are dealing with other suppliers who are not charging VAT and further state that they themselves are not able to recover the VAT charged.

Our reading of the situation is that if they must register in Eire (present t/o £100K p/a. but rising). This would be detrimental to business, The amount of t/o in the UK is minor.

The question is must our clients register and if so what schemes for the business as a whole can be instituted to legally minimise the VAT chargeable. The clients are open to ALL suggestions inc. a business in Eire.

Replies (3)

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By Gouldn2me
13th May 2013 12:26

Place of Business

The first question that must be asked is where is the place of business? If there is a premises in the RoI then you are caught by the rules and must register - the turnover limits are € 37,500 for services & € 75,000 for goods.

The full listing of limits are here

http://www.revenue.ie/en/tax/vat/registration/index.html#reg3

You don't appear to be covered by 4th Schedule services rules, so this won't apply.

You may be covered by either distance selling rules or the rules on the place of supply of services. You can find details of these here;

http://www.revenue.ie/en/tax/vat/international/faqs.html#forfirm

http://www.revenue.ie/en/tax/vat/leaflets/place-of-supply-of-services.html

Hope this is of some help.

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By shaun king
13th May 2013 12:43

Irish VAT

I would think that the Irish Revenue would argue that you making a supply of goods and or services in Eire and should be registered there. Regardless of where the place of supply is either UK or Irish VAT is chargeable and the Insurance company will not be able to recover it as the supply is not to them but the owner of the car. If the car owner is VAT registered - then the VAT charged is potentially recoverable subject to Irish VAT rules. As to suppliers not being registered you might want to take that with a pinch of salt!! 

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By firtrees
13th May 2013 21:38

 A non-established person

 A non-established person supplying taxable goods or services in the State is obliged to register and account for VAT irrespective of the level of turnover.

 

 

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