VAT Advice for Contract UK LTD, UK Agency, Irish Company

[Rontus]

Hi, I seem to have got into a bit of a minefield with my first contract and would like some advice regarding charging VAT.

I have set up a UK Ltd Company (Contractor), am contracted to a UK based agency (Company), for the purpose of providing service in Ireland(Client).

It is a 6 month contract, which by itself will not push me past the VAT threshold, but any extensions or extra contracts will.

My simplistic reading of the HMRC site and understanding of the concepts lead me to believe that I should append a charge of VAT to my invoices.

My accountant says yes, I do
The agency says no, I don't.

How do I begin unravelling this? Anything that helps me understand this better would be greatly appreciated.

Thanks, Rontus

[Jeremiah@RHJAccountants]

You might want to have a look at this article which is on the CUK Website

Contractors' Questions: Does UK VAT cover Irish agents? :: Contractor UK

Basically if the place of supply is Ireland and your company is registered in the UK then you do not charge VAT on your sales invoices.

Where is the place of supply? ( who do you invoice?)

I hope this helps

[captainham]

I am going via a UK agent with an EU end client and I charge VAT. You are invoicing another UK company after all (not the end client).

My agency agrees with this (and in fact insists on it), as do HMRC when I called to verify this a little while back. Can't see why Ireland would be any different, as it's still EU/non-UK.

HTH.

[captainham]

It is a 6 month contract, which by itself will not push me past the VAT threshold, but any extensions or extra contracts will.

Hang on, just seen this. Are you actually VAT registered? If not, then you can't charge VAT...

[Rontus]

Resolved!

You might want to have a look at this article which is on the CUK Website

Contractors' Questions: Does UK VAT cover Irish agents? :: Contractor UK

Basically if the place of supply is Ireland and your company is registered in the UK then you do not charge VAT on your sales invoices.

Where is the place of supply? ( who do you invoice?)

I hope this helps

Thanks for that Jeremiah.

I will be invoicing an agency in the UK.

The agency now informs me they will now accept VAT on my invoices, and ultimately they will then apply to have them refunded.

I think that puts me in the same scenario as the contractor in your link, once their agency (point of invoice) opened an office in the UK.

[Rontus]

Hang on, just seen this. Are you actually VAT registered? If not, then you can't charge VAT...

In the process, will have the reg no in 6-8 weeks

[Jessica@WhiteFieldTax]

I am going via a UK agent with an EU end client and I charge VAT. You are invoicing another UK company after all (not the end client).

My agency agrees with this (and in fact insists on it), as do HMRC when I called to verify this a little while back. Can't see why Ireland would be any different, as it's still EU/non-UK.

HTH.

I'm 98% sure thats correct - the 2% of me would want to check, as EC vat rules rules changed about 18 months ago

The PSC <> agent and agent <> client vat status won't be the same due to client being EC based, but that doesn't effect the PSC <> agent which is all UK.

Hang on, just seen this. Are you actually VAT registered? If not, then you can't charge VAT...

I read it as if OP wasn't registered in which case, yes, no VAT charge till then.

[captainham]

If indeed you are not registered yet for VAT, but plan on doing so soon, this thread might have a bit of useful info for such a scenario:

http://forums.contractoruk.com/accou...ml#post1616333

[Rontus]

Thanks!

Thanks for all of your comments, very informative!

Cheers, Rontus