Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Anything I should know? I assume I just bill them at the agreed rate in the agreed currency plus 20% VAT.
But if there are any catches, I'd be grateful to know.
TIA :-)
Where is the work being done?
It's a bit of a minefield.
If it's deemed to be done in ireland, you have to conform with iriish tax and social insurance.
I'd be careful
Hum... ClientCo is a US company who has set up their European presence in Ireland ( company that is legally established and tax resident in Ireland) . I would be contracted to the Irish entity but would do all my work from home (UK) and never visit Ireland. Their end-client is not based in Ireland but elsewhere in Europe. I'm not really sure why ClientCo is doing this, but they are
Anything I should know? I assume I just bill them at the agreed rate in the agreed currency plus 20% VAT.
But if there are any catches, I'd be grateful to know.
TIA :-)
What currency are they paying you in?
Last time I worked directly for an Irish company they paid me in pounds and expected me to charge them UK VAT as they set up a UK based presence. However I realised something was up as the bank helped themselves to £15 when every invoice was paid.
"You’re just a bad memory who doesn’t know when to go away" JR
The last time (2014) I did some work directly for a friend based in Ireland no VAT was charged - I was doing all the work while based at home in the UK. Check out VAT Notice 741A.
Still best to seek advice from an accountant though just to confirm.
The last time (2014) I did some work directly for a friend based in Ireland no VAT was charged
Was that B2B or B2C? It makes a difference. From your link (section 6.3):
The B2B general rule for supplies of services is that the supply is made where the customer belongs.
Section 2.1:
where the place of supply of services is in a member state of the EU, that supply is subject to the VAT rules of that member state and not those of any other country. If the member state is not the UK, such supplies are said to be ‘outside the scope’ of UK VAT
So B2B may be within the scope of Ireland VAT, and outside the scope of UK VAT.
In which case the reverse charge question becomes important.
Hum... ClientCo is a US company who has set up their European presence in Ireland ( company that is legally established and tax resident in Ireland) . I would be contracted to the Irish entity but would do all my work from home (UK) and never visit Ireland. Their end-client is not based in Ireland but elsewhere in Europe. I'm not really sure why ClientCo is doing this, but they are
Bill them as agreed and apply the EU VAT rules (provided they are registered for VAT in Ireland). Nothing more complicated than that.
Yeah you invoice VAT at 0% and refer to the community VAT rules on the invoice, plus you get 6 months without needing to pay Irish personal income tax... From what I remember.
Comment