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• # 101127
• Fri 22 Aug 2014 10:34 AM

Hello everyone,

One of my clients has asked me to invoice a new customer in Ireland.  My client is a HR Consultant and the invoice is for HR advice.

I'm really rusty with EC VAT regulations so I wanted to make sure I'm invoicing correctly.

I am using Sage Instant software so do I raise the invoice using VAT code T4 and show the VAT as 0.00?  I know I have to quote the customers VAT number on the invoice but I can't remember whether the VAT needs to be shown or not??

Your help would be much appreciated.

Thanks,

Helen

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• # 101131
• Fri 22 Aug 2014 10:59 AM

Thanks very much Sharon.

I thought this was the case but I got confused after checking with my clients accountant who told me the VAT for this invoice will have to be shown in Box 2 of the VAT return. 

Kind regards,

Helen

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• # 101133
• Fri 22 Aug 2014 11:13 AM

That's what I thought - it threw me when I was told about box 2 and I started questioning myself.  Although I haven't dealt with EC invoices for many years, the procedure was in the back of my mind.

Thanks for your help Sharon, it's always very much appreciated.

Kind regards,
Helen 

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• # 101156
• Sat 23 Aug 2014 03:42 PM

Hi Helen,

If your client was selling goods to Southern Ireland T4 and a Zero rate of VAT would be correct.  However, the invoice is for services supplied and the rules for this type of supply havve changed.  The place of supply of services to a VAT registered entity in another EC country is now where the customer is.  In this case it is Ireland, so the supply is outside the scope of UK VAT.  The Sage tax code to use is T9.  the customer's VAT no should still be quoted on all documentation, but your client needs to consider that if this supply is going to be a regular one, there may be a requirement to register for VAT in that country depending on the particular rules and regulations in place there.

• Roz

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• # 101158
• Sat 23 Aug 2014 05:28 PM

Hi Helen,

Can I suggest that you read section 5.2 of HMRC VAT notice 741A Place of Supply of Services before you decide which tax code to use for this transaction?

• Roz

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• # 101700
• Sat 27 Sep 2014 08:54 AM

My client recently supplied goods and services to a customer based in Ireland and I phoned the VAT office to ask what I should do. We were supplying goods and services to them in London, but the client's head office is in Ireland and is where the invoice was sent. I was told I must charge VAT on the goods, but not on the service. I don't know if this adds clarity but I if I'm not sure I call the VAT helpline and get a call reference number, which I keep with the invoice for traceability.

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• # 101705
• Sat 27 Sep 2014 09:23 PM

Do we not do Reverse Charge anymore? This is what I've been doing for the likes of Google Adwords, which is in Ireland.

Carol

• Carol Saunders
  Lady of Ledger Book Keeping
  Telford, Shropshire

  
  

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