I am an electrician living in Newry, I am registered for VAT in the UK. If I carry out work in the ROI, do I have to register for VAT in the ROI also?
There are specific rules relating to VAT on the supply of services and the corresponding VAT obligations arising from same. These rules stipulate in which country the supply is deemed to be performed, who must account for the VAT and to which government. The rules vary depending on whether the customer is receiving the supply for business or non-business purposes.
For services, there is a general rule and there are also several exceptions from this. The general rule for a business to business service is; the supply is deemed to take place where the recipient is established, and it is the customer who must self- account for VAT on a reverse charge basis; if the supply is to a non-business customer, the supply is deemed to be performed where the supplier is establish and the supplier will charge VAT.
If, however your supply relates to one of the exceptions, which includes, the supply of services connected to work with land or property, this includes the services of electricians, then the place of supply is where the land is situated. It is important to note, the supply and installation of goods, which do not form part of a building is not land related, typical examples include the supply and assembly of exhibition stands, movable shop counters, computer systems, generators etc.
If your supply is “land related” there are further reverse charge VAT rules relating to supplies between sub-contractors and principal contractors within the construction industry in the ROI, which as a sub-contractor mean you do not need to register for Irish VAT. However, if the supply is not within the construction scheme rules then you must register and charge Irish VAT.
If your supply is not a “land related” supply, then you only need to register for Irish VAT if your customer is a non-business person.
As non-compliance with VAT in either jurisdiction can give rise to penalties it is important to correctly clarify both your service and your customer.
The advice above is specific to the facts surrounding the questions posed. Neither PKF-FPM nor the contributors accept any liability for any direct or indirect loss arising from any reliance placed on replies.
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