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UK Company and Republic of Ireland VAT

UK Company and Republic of Ireland VAT

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A client has asked for guidence on a potential project that will be delivered by his UK Ltd Co to a company in the Republic of Ireland via another UK Ltd Co (effectively as a subcontractor). My client's role will be a small part of a much larger over arching project.

The project involves consultancy and training on specialist medical equipment that will be delivered by a combination of remote work from the UK to Ireland and by visits to Ireland for 2-3 weeks at a time. The project is likley to last at least 12 months and it is expected that my client will be in ROI for 20-25 weeks.

My client will charge the UK Company for set fees based on stages of the project completion plus travel, accomodation and subsistence whilst in Ireland all plus standard rate VAT - correct?

Is there any requirement to consider VAT Registration in the Republic of Ireland based on this structure? Service fee levels are likley to exceed the threshold in ROI.

Is there any scope to recover VAT incurred whilst in Ireland (hotels etc.)? 

Thanks in advance. 

 

 

 

 

   

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Jason Croke
By Jason Croke
02nd Dec 2021 08:01

Your UK client is making a supply to another UK company (who in turn is making a supply to RoI)....and I agree it sounds like a UK to UK supply and UK VAT applies.

I don't see any reason why your client needs to register for VAT in RoI, other than your client will incur Irish VAT (hotels, foods, etc) which your client cannot reclaim on their UK VAT return.

As the billing agreement is for your client is for stage based fees plus expenses, it likely means your client will recharge Irish expenses gross onto the UK customer, in effect lumbering the UK customer with Irish VAT it cannot reclaim.

Your client could submit a 13th Directive refund and reclaim the Irish VAT and assuming it is successful in reclaiming that VAT back from Ireland, then it could either pocket that or pass it back to the UK customer.

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