VAT & Agency in Dublin

[cshawit]

I started a new contract in Nov 2009 where I was working on site for a company based in North London but the agency was based only in Dublin. It opened a new office in London in January.

I invoiced the agency in Dublin for November and December and added VAT as I would for a UK based agency. The agency refused to pay it as they say they have no way of claiming it back from the end client i.e. the company where I work on site. The agency claim that they are not allowed to charge VAT on their invoice to the UK company according to Irish/EU law. I have no idea of what the Irish law is in this situation cross EU borders.

Since I am working for a UK based client, I believe I am obliged to pay VAT to HMRC based on a call to the VAT line and my reading of the HMRC VAT website.

My experience is I'm sure not unique and is my limited company obliged to pay VAT of several thousand pounds for which I have not received payment from the agency.

From January onwards there is no issue as I am now invoicing their London office.

I'd appreciate any factual advice please not just random opinion.
Thanks
CAS

[administrator]

No takers on this one?

I have tried to call the VAT helpline but they are so busy that they are asking me to call back later...

Found this though:
http://www.brighton-accountants.com/...at-uk-ireland/

Have asked the editors to look into this as well.

[Sockpuppet]

I invoiced the agency in Dublin for November and December and added VAT as I would for a UK based agency. The agency refused to pay it as they say they have no way of claiming it back from the end client i.e. the company where I work on site. The agency claim that they are not allowed to charge VAT on their invoice to the UK company according to Irish/EU law. I have no idea of what the Irish law is in this situation cross EU borders.

They are correct and you shouldn't have added the VAT on cross border invoices.

As long as they give you a number that validates here http://ec.europa.eu/taxation_customs/vies/vieshome.do don't stick the VAT on.

[questiontime]

I think this is correct for Nov/Dec and that solves OP's issue.

With a number of changes to EC VAT rules since Jan, what will be the correct thing if OP had to continue invoices to Irish agency? I guess VAT has to be added as the place of supply of service is the UK. The Irish company will then recliam the VAT from UK HMRC through Irish (equivalent of ) HMRC. Is this correct ?

They are correct and you shouldn't have added the VAT on cross border invoices.

As long as they give you a number that validates here http://ec.europa.eu/taxation_customs/vies/vieshome.do don't stick the VAT on.

Richard