Reverse charge VAT - UK to RO Ireland

As a UK business, How do we now know when to account for reverse charge VAT and when not to?

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I have various large invoices from Ireland with no VAT detailed on them. Previously, i would assume that these invoices would just be processed as no VAT and left at that (Unless there is reverse charge detail on the invoice). However i am reading mixed advice online. Even if the invoice doesnt detail reverse charge should i still account for them on a reverse charge basis, if the expense would usually be vatable in ireland?

Any help greatly apreciated. Thanks in advance

Replies (5)

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By rmillaree
07th Sep 2021 09:56

You neeed too supply full chapter and detail of exact services being supplied and on what basis - eg is it business to business.

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VAT
By Jason Croke
07th Sep 2021 09:57

Are these large invoices... for services or for goods?

If services, then you reverse charge them - even if it doesn't mention reverse charge on the invoice, you are still meant to apply the reverse charge rules. So treat as both a purchase and a sale, declare output and input, etc.

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By David Ex
07th Sep 2021 10:37

You do what I do when I need Information technology consultancy advice, you buy in the advice from a professional adviser.

It’s expensive to get tax wrong so why risk it? You’re a large company, you must have advisers.

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RLI
By lionofludesch
07th Sep 2021 10:58

You're supposed to account for reverse charge VAT using UK rates. You can't assume that foreign folk will know the rates of VAT in the UK, in the same way that few folk in this country can quote rates in every EU country.

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By DKB-Sheffield
07th Sep 2021 11:56

Ldolman1996 wrote:

Even if the invoice doesnt detail reverse charge should i still account for them on a reverse charge basis, if the expense would usually be vatable in ireland?

Hi

The test for applying the RC mechanism (assuming a B2B supply) is if the supply is taxable in the UK, regardless of whether that supply is, or would be, taxable in IE.

Whilst IE VAT is pretty much aligned to UK VAT, there are exceptions - not so much in relation to whether supplies are taxable/ exempt/ out of scope, but certainly in relation to VAT Rates (Standard, Reduced, Second Reduced, Zero) charged.

As others have suggested, professional advice is recommended, from an advisor who has knowledge of cross-border trading.

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