Subject to certain exceptions, Irish VAT is not levied on the following services supplied to non-business customers established outside the EU: You must confirm the status of your client (professional or private) if you provide services abroad. If you misidentify your customer and do not charge VAT, you are obliged to pay VAT. In case of revenue verification, you may also incur interest and penalties. For deliveries to unregistered customers/consumers, the old rules remain in place. Services are deemed to have been provided when they are actually provided. For VAT treatment of B2B services, the general situation must be considered as having been provided when the customer is established. Just like your UK consumers, charge 20% VAT on services and supplies to EU businesses. There are a few other things to keep in mind here. Each EU country has a sales value threshold, and if you exceed it, you will need to register to pay VAT in that country.
If your annual turnover in the EU exceeds GBP 250 000, you will need to find out about the Intrastat supplementary declarations. This is called an acquisition. The seller does not charge you VAT – this falls under the reverse charge rule. So you pay UK VAT as if you had bought the goods or supplies in the UK abroad, and then you get them back as a VAT production. You must provide your supplier with your VAT number for their records. There are a number of general exceptions to the rules on the place of supply of services for VAT purposes. In these cases, the services are subject to VAT due to the nature of the services in a particular country, usually closely related to the service. In this case, the above general rules do not apply. The trader may be required to register for this purpose in the other country. So, do you pay UK VAT on services provided by EU businesses or only on goods? This difference is crucial, as the “place of supply” determines which country applies the country`s VAT rules. If you`re selling actual physical stock, the place of delivery is where the seller is located – hence UK VAT rules apply. If you sell services, the place of supply of services is where the consumer is located – for services, therefore, the VAT rules of the consumer`s country must be used.
These are mainly intangible services that include advertising, intellectual property rights, legal services and accounting. After Brexit, if you sell to a person who is not a non-commercial (B2C) customer in the UK, the services of lawyers and accountants will be treated as provided where the client belongs and outside the scope of UK VAT*. Your branch is located in the United Kingdom and you have permanent establishments in other countries, but the UK office is the one that deals mainly with the provision of parking charges applied by certain EU countries to certain supplies of goods and services not listed in Annex III of the VAT Directive. These countries were allowed to continue to apply reduced VAT rates instead of the standard rate to these supplies, provided that these reduced rates were not less than 12%. Services provided in connection with cultural, artistic, sporting, scientific, educational, entertainment or similar activities (including fairs and exhibitions) shall be deemed to have been provided when they take place. Therefore, the people who provide (and therefore provide) the services must register there. As noted elsewhere, promoters and persons providing premises may pay VAT on these services. If your business is based in the EU, you have different VAT obligations depending on where you buy or sell and whether you trade goods or services. For services supplied to non-traders in the EU, the general rule is that Irish VAT is payable.
If the services are provided from an establishment in Ireland, this is the place of supply. There are important exceptions for digital and telecommunications services. Generally, when it comes to selling legal services, if you sell directly to another business (B2B), the place of delivery is where the customer belongs. There are also other financial penalties that you need to look out for. If you send a return with clerical errors or intentional “inaccuracy”, HMRC may fine you 100% of the amount you overclaimed or failed to report. It is therefore worth looking twice at the complex tax rules that accompany the sale of supplies or services in a country outside the UK. The same applies to the provision of services abroad. Certain goods and services do not fall within the scope of VAT and are classified as exempt.
For example: “stamps, financial and real estate transactions”. These do not need to be on your UK VAT return. From 1 January 2021, you will no longer have to complete and submit an EC sales list for services departing from the UK to customers subject to VAT in the EU. Is your UK company registered for value added tax (VAT)? Make sure you understand all the details of the different VAT rates that apply to your business transactions when it comes to selling supplies or services. Each EU country applies a standard rate that applies to most goods and services. This percentage may not be less than 15 %. There is a VAT system for third-country businesses providing electronic services to private consumers in the EU. In this case, the trader may choose to register in an EU country that acts as an agent and transfers VAT to and on behalf of the states where VAT is due by the non-EU supplier. Financial services such as banks and insurance companies are deemed to have been provided where they are used and used. These services are generally excluded.
If the services are supplied outside the EU, special provisions apply to the refund of input VAT or costs. If the services are supplied to a permanent establishment situated in a place other than the place where the enterprise is established (e.g. a branch), the supply is made at the branch. In the absence of an establishment or fixed establishment, the place of permanent or habitual residence of the recipient shall determine the place of supply. As with B2B deliveries within the EU, the supply of services to business customers outside the EU is generally not subject to VAT in Ireland. As a general rule, the place of performance is the place of residence of the professional client (outside the EU).