VAT on sales of software to EU reseller - Place of supply
My UK based VAT registered client company develops and sells bespoke business software to a Republic of Ireland based reseller (also VAT registered).
The nature of the software means that it will only ever be sold onto business customers.
However, the reseller will not be using the software itself and my client may not know where the ultimate customer is based as the reseller may sell throughout the world.
Am I over complicating things and should the sale simply be to Ireland? i.e. zero rated with reverse charge to be applied by the Eire based reseller as the customer?
The reseller does provide a sales list upon which the royalties are based, should the place of supply be based on the ultimate customer on this list?
In short, is the reseller the customer or is it the ultimate customer the customer?!
Secondly, how important is it for the supplier to state "This supply is subject to the reverse charge" on the invoice? Is it not for the customer to figure out whether reverse charge applies?
Finally, can someone please confirm that the requirement to register for VAT in Ireland only applies to Distance Selling and not this particular scenario? My client will soon be over the VAT threshold (in Ireland) in selling to the reseller so wanted to double check.
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