VAT – sample questions on place of
supply
© Irish Tax Institute 2011
General VAT Principles
Do not look at sections in Isolation
Approach to answering VAT question
1
2
3
4
5
6
Is it a supply of goods or services
What is the place of supply
Who is the accountable person
What is the VAT Rate
What is the consideration/Taxable amount (i.e. what is the
VAT charged on)
Is there a VAT recovery entitlement
<**Refer to aid to approaching a VAT question**>
© Irish Tax Institute 2011
Topic 1
Cross border supply of goods and services
- What is a good for VAT purposes
- What is the place of supply
- Who is the accountable person
- What is a service for VAT purposes
- What is the place of supply
- Who is the accountable person
© Irish Tax Institute 2011
Chapters 9 to 12
Cross border supply of goods
Basic Intra-community supplies and acquisitions of goods
There are two elements to every cross border intra community supply;
A - the intra community supply by the vendor.
B – the intra Community acquisition by the purchaser
For an intra Community supply and acquisition need to know
1.
2.
3.
Place of supply - Section (3)
VAT rate
Accountable person for supply and acquisition.
© Irish Tax Institute 2011
Chapters 9 to 12
Goods – Place of supply
VAT is all about place of supply rules and also who is accountable for paying the VAT
For goods - Section 29, 30, & 31 VAT Act.
General rule – PoS = where goods located at the time of supply or if goods require transportation
where transport begins S 29.
Exceptions
– Goods requiring installation/assembly – PoS = where goods installed or assembled s29 1(b).
– Goods supplied on board aircraft/vessels (between ports in EU) – PoS = where transport
began S29(1)(d)
– Distance selling – PoS = where transport ends (i.e. location of customer) – if threshold
exceeded – PoS = where transport began S30.
– Natural gas & electricity to taxable dealer – PoS = where taxable dealer established S31
– Natural gas & electricity person other than taxable dealer – PoS = where customer is
established S 31
Know the accountable person for each supply per Section 5 to 12
© Irish Tax Institute 2011
Chapters 9 to 12
Cross border supply of servcies
•
Fundamental change to the rules post 1 January 2010 for cross border supply and receipt of
services
•
VAT “reverse charge” applies to the cross border supply and receipt of most services with limited
exceptions.
•
Test is a business test or a VAT number test for supplies to EU recipients
•
For supplies to non EU recipients note Section 34(1)(m) services (the old Fourth Schedule
services)
•
Also be aware of the other VAT package changes, the introduction of VIES services returns for
services (Section 83) and changes to the Eighth Directive process (now called a European VAT
reclaim (Section 101)
•
S.34 (g)&(ga) NEW CHANGE FROM 1 January 2011
© Irish Tax Institute 2011
Chapters 9 to 12
Services – Place of supply
General rule Section 34(a) &(b)
– PoS is place where customer is established where customer is in business or has an EU VAT number (B to
B) = 34(a)
– PoS is place where supplier is established where customer is not in business (B to C) = 34(b)
– Note who is the person accountable for paying the VAT, either the supplier or customer.
Exceptions
Services connected with property – PoS = where property located s.34 (c)
Passenger Transport services – PoS = where transport takes place s.34 (d)
Admission to Cultural, artistic, sporting, scientific, educational, entertainment and similar events S.34(g) where
physically takes place s.34 (g)&(ga) NEW CHANGE FROM 1 January 2011
Restaurant or catering services – PoS is where services are physically carried out, with exception of restaurant
or catering services supplied on board a ship, train or aircraft S 31(i).
Short term hiring of means of transport - PoS is where means of transport put at disposal of customer. S.34k
Non-EU established supplier of electronically supplied services, telecoms services, telephone cards, etc to
private individuals – PoS = the State S34 l &3.35
Section 34(m) services supplied to non EU customers
Use and enjoyment rules s 35
Others
Know the accountable person for each
© Irish Tax Institute 2011
Question 1 - Goods
Irish company sells goods to another Irish company. Goods are located US at time of sale.
–
What is the Irish VAT treatment of sale of goods
–
Can the Irish company recover Irish VAT on costs related to the sale (e.g. VAT on legal fees.)
© Irish Tax Institute 2011
Question 1 - Goods
Irish company sells goods to another Irish company. Goods are located US at time of sale.
–
What is the Irish VAT treatment of sale of goods
As goods located in US at time of sale, place of supply is US per Section 29(2) VA
As place of supply is US, supply is outside scope of Irish VAT.
Irish supplier not required to charge Irish VAT on sale of goods or to record the sale for Irish VAT purposes.
Irish VAT invoice does not have to be issued but can be issued for commercial reasons
–
Can the Irish company recover Irish VAT on costs related to the sale (e.g. VAT on legal fees.)
While sale is outside the scope of Irish VAT the transaction is a qualifying activity, per Section 59 (1)(f) VA i.e. a supply outside of
Ireland that would be VATable if carried out within Ireland.
Company can recover VAT on related costs in accordance with Section 59 (2) VA
© Irish Tax Institute 2011
Question 2 - Goods
Irish company sells goods to UK company. Goods are shipped from Ireland to the UK 2 months after sale. Customer is VAT registered in UK.
–
–
–
What is the Irish VAT treatment of sale of goods.
What Irish VAT compliance administrative requirements arise out of the sale
Can the Irish company recover VAT on costs related to the sale
© Irish Tax Institute 2011
Question 2 - Goods
Irish company sells goods to UK company. Goods are shipped from Ireland to the UK 2 months after sale. Customer is VAT registered in UK.
–
–
–
What is the Irish VAT treatment of sale of goods.
Goods dispatched from Ireland, place of supply is Ireland per Section 29(1)(a) VA as dispatch begins from Ireland. Sale is within scope
of Irish VAT.
Irish supplier is accountable person per Section 5 (1) VA.
Zero rate Irish VAT can be applied provided customer VAT number is obtained and quoted on sale invoice. Para 1(1) Second schedule
VA provides basis for VAT zero rating (contingent on obtaining VAT number) and Regulation 29 of 2010 VAT regulations (SI 639 of
2010) sets out rules around application of VAT zero rating.
What Irish VAT compliance administrative requirements arise out of the sale
Invoice must be issued to customer quoting customer VAT number with wording to indicate supply is an inter EU supply of goods and
customer has to account for VAT on acquisition of the goods in the UK. Section 66 (1)(iv) and VAT invoicing regulations 20 of the 2010
VAT regulations apply. See sample invoice attached.
Sale should be recorded on an Irish VIES return (Section 82 VA refers)
Sale should be recorded for Irish Intrastat dispatches purposes (initially on VAT return or more detailed monthly Intrastat dispatches
return if annual threshold is breached)
Supplier must obtain and retain evidence the goods left Ireland
Can the Irish company recover VAT on costs related to the sale
Yes, sale is a VATable (zero rated) sale in Ireland and VAT recovery is allowed under Section 59 (2)
For info - In the UK a separate VATable event arises for the purchaser, being an acquisition in the UK. This is governed under UK VAT law
and is an issue for the customer and not the supplier.
© Irish Tax Institute 2011
Question 3 - Goods
Irish company sells goods to a US company. Goods are shipped from Ireland to the US by supplier. Customer is not VAT registered in the
EU.
–
–
–
What is the Irish VAT treatment of sale of goods.
What Irish VAT compliance administrative requirements arise out of the sale
Can the Irish company recover VAT on costs related to the sale
© Irish Tax Institute 2011
Question 3 - Goods
Irish company sells goods to a US company. Goods are shipped from Ireland to the US by supplier. Customer is not VAT registered in the
EU.
–
–
–
What is the Irish VAT treatment of sale of goods.
Goods dispatched from Ireland, place of supply is Ireland per Section 29(1)(a) VA as dispatch begins from Ireland. Sale is within scope
of Irish VAT.
Irish supplier is accountable person per Section 5 (1) VA.
Zero rate Irish VAT can be applied provided as this refers to the export of goods to a non EU country. Customer VAT number is not
required. Para 3(1) Second schedule VA provides basis for VAT zero rating.
Supplier must obtain and retain evidence the goods have left Ireland for a non EU country, e.g. Export documentation, delivery
documentation, bill of landing.
What Irish VAT compliance administrative requirements arise out of the sale
Invoice does not strictly have to be issued but can be issued for commercial reasons. In practice VAT invoice should be issued to
support basis for zero rating.
Sale is not recorded on a VAT VIES return.
Can the Irish company recover VAT on costs related to the sale
Yes, sale is a VATable (zero rated) sale in Ireland and VAT recovery is allowed under Section 59 (2) VA
© Irish Tax Institute 2011
Question 4 - Goods
Irish company, VAT registered in Ireland buys goods from UK supplier. Goods are shipped from UK to Ireland.
–
What are the Irish VAT treatment implications.
© Irish Tax Institute 2011
Question 4 - Goods
Irish company, VAT registered in Ireland buys goods from UK supplier. Goods are shipped from UK to Ireland.
–
What are the Irish VAT treatment implications.
Customer makes acquisition of goods in Ireland. Place of supply of acquisition is Ireland per Section 32 (1)& (2) VA
Customer is accountable person per Section 9(1) VA and has to self assess for standard rate VAT in Ireland.
On basis customer is using goods for VATable purposes VAT is self assessed in Box T1 And T2 of same VAT return and net effect is
VAT cancels out and no VAT is cash payable to Revenue (See sample VAT return below).
If customer uses goods for exempt purposes no VAT is recoverable and VAT has to be self assessed in Box T1 (as sales VAT) and
cash paid to Revenue
The purchase should be recorded for Irish Intrastat arrivals purposes (initially on VAT return or more detailed month Intrastat arrivals
return if annual threshold is breached)
For info - in the UK, the supply would be treated as a zero rated sale in the UK, under UK VAT law. The sale is an issue for the supplier not
the customer.
© Irish Tax Institute 2011
Question 5 - Goods
Irish company, VAT registered in Ireland buys goods from UK supplier. Goods are shipped from UK to France.
–
–
–
Irish customer sells the goods to a VAT registered customer in France
What VAT compliance obligations arise
Irish customer sells the goods to a non VAT registered customer in France
© Irish Tax Institute 2011
Question 5 - Goods
Irish company, VAT registered in Ireland buys goods from UK supplier. Goods are shipped from UK to France.
–
Irish customer sells the goods to a VAT registered customer in France
Place of supply of sale from UK supplier to Irish customer is UK as goods leaving the UK (UK equivalent of Section 29(1)(a) VA as
dispatch begins from UK). Supplier can apply zero rate UK VAT using customers Irish VAT number.
Place of supply of acquisition of goods is France (where goods end up). Accountable person is Irish customer who makes acquisition in
France.
Normally Irish customer would have to VAT register in France to account for acquisition VAT on goods arriving in France. Irish supplier
would then charge French VAT on sale of goods to French customer.
However, as 3 parties involved, triangulation can be applied. The effect is the acquisition of the goods by the Irish company in France
is ignored and French customer self assesses for VAT on purchase of the goods. This is a simplification to avoid Irish company having
a requirement to VAT register in France.
What VAT compliance obligations arise
Irish company would issue VAT invoice to French company indicating triangulation is applied and would flag T in its VIES return to
indicate triangulation applies. Transaction would not be recorded for Irish Intrastat purposes
–
Irish customer sells the goods to a non VAT registered customer in France
If customer is not VAT registered in France, e.g. private customer, triangulation cannot be applied. Irish customer would have to VAT
register in France to account for acquisition VAT on goods arriving in France (VAT neutral in French VAT return). Irish supplier would
then charge French VAT on sale of goods to French customer.
© Irish Tax Institute 2011
Question 6 - Goods
UK Co moves the goods to Ireland and stores them in an Irish warehouse pending receipt of orders from Irish identified customers. Goods can be
in warehouse in ownership of UK company for up to 2 months. When an order is received and payment made title to the goods transfers from
UK Co to its Irish customers
- What are the Irish VAT implications of the movement of the goods from UK to Ireland and what Irish VAT treatment applies to the sale of
the goods.
- How would the analysis differ of the customers were private individuals
© Irish Tax Institute 2011
Question 6 - Goods
UK Co moves the goods to Ireland and stores them in an Irish warehouse pending receipt of orders from Irish identified customers. Goods can be
in warehouse in ownership of UK company for up to 2 months. When an order is received and payment made title to the goods transfers from
UK Co to its Irish customers
- What are the Irish VAT implications of the movement of the goods from UK to Ireland and what Irish VAT treatment applies to the sale of
the goods.
The movement of the goods from the UK to Ireland is treated as a supply in the UK and an acquisition in Ireland. A movement of
own goods cross border is treated as a deemed supply for Irish VAT purposes per Section 19(h) VA.
Normally UK Co would be required to VAT register, self assess for Irish acquisition VAT on bringing the goods into Ireland, and
charge Irish VAT on sale of the goods. The place of supply for the sale would be Ireland as the goods would be stored in Ireland
pending sale and are not directly shipped from the UK to end customers (the goods would be regarded as located in Ireland at
the time of sale –Section 29 (1)(b) VAT refers. UK Co would be the accountable person in accordance with Section 5 (1) VA..
It should however be possible to interpret Section 23 VA to apply a relief called “call off” stock relief – applying the relief the
acquisition of the goods by UK Co is ignored. The Irish customers are deemed to “supply” the goods to themselves and would
self assess for Irish VAT on removing the goods from the warehouse. This UK Co could avoid having to VAT register in Ireland
in respect of the sales.
- How would the analysis differ of the customers were private individuals
If the customers were private individuals the relief under Section 23 VA could not be applied. would be required to VAT register,
self assess for Irish acquisition VAT on bringing the goods into Ireland, and charge Irish VAT on sale of the goods.
© Irish Tax Institute 2011
Question 1 - Services
Irish company provides management services to
•
Subsidiary in China
•
Subsidiary in UK
–
–
–
What is the Irish VAT treatment of supply of services
What Irish VAT compliance administrative requirements arise out of the sale
Can the Irish company recover Irish VAT on costs related to the supply (e.g. VAT on legal fees).
© Irish Tax Institute 2011
Question 1 - Services
Irish company provides management services to
•
Subsidiary in China
•
Subsidiary in UK
–
What is the Irish VAT treatment of supply of services
China sub
B2B service. In accordance with Section 34 (a) VA the place of supply of the services is China, where the customer is located.
As place of supply is China, supply is outside scope of Irish VAT.
Irish supplier not required to charge Irish VAT on supply.
Irish VAT invoice does not have to be issued but can be issued for commercial reasons
UK Sub
B2B service. In accordance with Section 34 (a) VA the place of supply of the services is UK, where the customer is located.
As place of supply is UK, supply is outside scope of Irish VAT.
Irish supplier not required to charge Irish VAT on supply. UK customer will self asses for any UK VAT arising under reverse charge
procedure. This is an issue for the customer not the supplier
Irish VAT invoice does have to be issued
© Irish Tax Institute 2011
Question 1 contd.– Services
Irish company provides management services to
•
Subsidiary in China
•
Subsidiary in UK
–
What Irish VAT compliance administrative requirements arise out of the sale
China sub
Irish VAT invoice does not have to be issued but can be issued for commercial reasons
UK Sub
Irish VAT invoice does have to be issued. Invoice must be issued to customer quoting customer VAT number with wording to indicate
supply is a supply of reverse charge services. Section 66 (1)(iv) and VAT invoicing regulations 20 of the 2010 VAT regulations apply.
See sample invoice attached.
Sale should be recorded on an Irish VIES return (Section 83 VA refers)
–
Can the Irish company recover Irish VAT on costs related to the supply (e.g. VAT on legal fees).
For China and UK
While sale is outside the scope of Irish VAT the transaction is a qualifying activity, per Section 59 (1)(f) VA i.e. a supply outside of
Ireland that would be VATable if carried out within Ireland.
Company can recover VAT on related costs in accordance with Section 59 (2) VA
© Irish Tax Institute 2011
Question 2- Services
Irish company receives management services from
•
Subsidiary in China
•
Subsidiary in UK
–
–
What is the Irish VAT treatment of supply of services
Can the Irish company recover Irish VAT on costs related to the supply (e.g. VAT on legal fees)
© Irish Tax Institute 2011
Question 2- Services
Irish company receives management services from
•
Subsidiary in China
•
Subsidiary in UK
–
What is the Irish VAT treatment of supply of services
China and UK
B2B services. Place of supply for both is Ireland where customer (Irish company) is established. Per Section 34 (a) VA
Irish company is accountable person in accordance with Section 12 (1) VA
Irish company is treated as ”supplying the services to itself” and is required to self assess for VAT on receipt of the services.
On basis customer is using the services or VATable purposes VAT is self assessed in Box T1 And T2 of same VAT return and net
effect is VAT cancels out and no VAT is cash payable to Revenue (See sample VAT return below).
–
Can the Irish company recover Irish VAT on costs related to the supply (e.g. VAT on legal fees)
On basis customer is using the services or VATable purposes VAT is self assessed in Box T1 And T2 of same VAT return and net
effect is VAT cancels out and no VAT is cash payable to Revenue (See sample VAT return below).
© Irish Tax Institute 2011
Question 3 - Services
Irish company provides accounting services to private individuals in
•
In UK
•
In US
–
–
What is the Irish VAT treatment of supply of services
What Irish VAT compliance administrative requirements arise out of the sale
© Irish Tax Institute 2011
Question 3 - Services
Irish company provides accounting services to private individuals in
•
In UK
•
In US
–
What is the Irish VAT treatment of supply of services
UK customer
B2C services. Place of supply for supply is Ireland where supplier is established. Section 34(b) VA
Irish company is accountable person in accordance with Section 5
Irish company is required to apply standard rate to the supply of the services.
US customer
B2C services but this is a supply of Section 34m service (specified in S33 (5) to non EU customer. Place of supply is US where
customer is established
As place of supply is US supply is outside scope of Irish VAT.
Irish supplier is not required to charge Irish VAT on the supply
–
What Irish VAT compliance administrative requirements arise out of the sale
UK customer
Irish supplier required to raise Irish VAT invoice with Irish VAT.
Supply is not recorded on Irish VIES return.
US customer
Irish VAT invoice does not have to be issued but can be issued for commercial reasons
© Irish Tax Institute 2011
Question 4 - Services
Irish company leases equipment to French company. Equipment is used by French customer in Germany and Ireland.
–
–
What is the Irish VAT treatment of lease of the equipment by Irish Company
Can the Irish company recover Irish VAT on costs related to the supply (e.g. VAT on legal fees)
© Irish Tax Institute 2011
Question 4 - Services
Irish company leases equipment to French company. Equipment is used by French customer in Germany and Ireland.
–
What is the Irish VAT treatment of lease of the equipment by Irish Company
B2B service. In accordance with Section 34 (a) VA the place of supply of the services is France where the customer is located.
As place of supply is France, supply is outside scope of Irish VAT.
Use of equipment in Ireland is irrelevant.
Irish supplier not required to charge Irish VAT on supply. French customer will self asses for any French VAT arising under reverse
charge procedure. This is an issue for the customer not the supplier
Irish VAT invoice does have to be issued (see prior slides for leg references)
Invoice must be issued to customer quoting customer VAT number with wording to indicate supply is a supply of reverse charge
services (see sample invoice attached).
Sale should be recorded on an Irish VIES return (S 83 VA).
–
Can the Irish company recover Irish VAT on costs related to the supply (e.g. VAT on legal fees)
While sale is outside the scope of Irish VAT the transaction is a qualifying activity, per Section 59 (1)(f) VA i.e. a supply outside of
Ireland that would be VATable if carried out within Ireland.
Company can recover VAT on related costs in accordance with Section 59 (2) VA
© Irish Tax Institute 2011
Question 5 - Services
Irish company leases equipment to US company. Equipment is used by US customer in Ireland.
–
–
What is the Irish VAT treatment of supply of services
Can the Irish company recover Irish VAT on costs related to the supply (e.g. VAT on legal fees.
© Irish Tax Institute 2011
Question 5 - Services
Irish company leases equipment to US company. Equipment is used by US customer in Ireland.
–
What is the Irish VAT treatment of supply of services
B2B service.
Normal place of supply of the services is US where the customer is located. However, special use and enjoyment rules apply per
section 35 (1).
Place of supply is deemed to be Ireland.
Irish supplier is accountable person per section 5 and is required to apply standard rate Irish VAT to the supply.
Irish VAT invoice does have to be issued with Irish VAT charged.
–
Can the Irish company recover Irish VAT on costs related to the supply (e.g. VAT on legal fees.
Supply is a VATable supply. Company can recover VAT on related costs in accordance with Section 59 (2) VA
© Irish Tax Institute 2011
Question 6 - Services
Irish company leases aircraft to Italian airline. Aircraft is used exclusively within Italy.
–
What is the Irish VAT treatment of lease of aircraft
© Irish Tax Institute 2011
Question 6 - Services
Irish company leases aircraft to Italian airline. Aircraft is used exclusively within Italy.
–
What is the Irish VAT treatment of lease of aircraft
B2B service. In accordance with Section 34 (a) VA the place of supply of the services is Italy where the customer is established.
As place of supply is Italy, supply is outside scope of Irish VAT.
Irish supplier not required to charge Irish VAT on supply. Italian customer will self asses for any Italian VAT arising under reverse
charge procedure. This is an issue for the customer not the supplier
Irish VAT invoice does have to be issued (see prior slides for leg references).
Invoice must be issued to customer quoting customer VAT number with wording to indicate supply is a supply of reverse charge
services (see sample invoice attached).
Sale should be recorded on an Irish VIES return (Section 83 VA refers) unless the lease rentals qualify for zero rate VAT in Italy
© Irish Tax Institute 2011
Question 7 - Services
Irish company leases aircraft to Irish airlines (a) which operates wholly within Ireland, and airline (b) which operates international routes from
across mainland Europe with no domestic in country flights. The airline are used on mainland Europe and never come into Ireland.
–
What is the Irish VAT treatment of lease of aircraft to airline (a) and airline (b)
© Irish Tax Institute 2011
Question 7 - Services
Irish company leases aircraft to Irish airlines (a) which operates wholly within Ireland, and airline (b) which operates international routes from
across mainland Europe with no domestic in country flights. The airline are used on mainland Europe and never come into Ireland.
–
What is the Irish VAT treatment of lease of aircraft to airline (a) and airline (b)
Airline A
B2B services. Place of supply is Ireland where customer (Irish company) is established (S.34 (a) VA refers).
Irish company is accountable person in accordance with Section 5.
Irish company should apply standard rate to the lease rentals, on the assumption the airline is not a “qualifying airline” i.e. Does not
operate for reward chiefly on international routes.
Airline B
B2B services. Place of supply is Ireland where customer (Irish company) is established. (S.34 (a) VA refers).
Irish company is accountable person in accordance with Section 5.
Assuming the airline is a qualifying airline ( it operate for reward chiefly on international routes) the lease rentals should qualify for zero
rate Irish VAT in accordance with para 4 (b) of the second schedule to the VAT.
© Irish Tax Institute 2011
Question 8 - Services
Irish company (A) leases aircraft to another Irish company (B). Company (B) sub leases aircraft to American Airlines and aircraft is used
domestically within US.
–
–
What is the Irish VAT treatment of lease of aircraft by company A to Company B
What is the Irish VAT treatment of lease of aircraft by Company B to American Airlines
© Irish Tax Institute 2011
Question 8 - Services
Irish company (A) leases aircraft to another Irish company (B). Company (B) sub leases aircraft to American Airlines and aircraft is used
domestically within US.
–
–
What is the Irish VAT treatment of lease of aircraft by company A to Company B
What is the Irish VAT treatment of lease of aircraft by Company B to American Airlines
Company A to Company B
B2B services. Place of supply is normally Ireland where customer (Irish company) is established per Section 34 (a) VAT.
However as the aircraft is used outside the EU special use and enjoyment rules apply per section 35 (2) VA which say the place of
supply is where the aircraft is used and enjoyed (the USA) meaning the lease is outside the scope of Irish VAT.
Company A is not required to charge Irish VAT on the lease rentals.
If the aircraft were not used outside the EU the lease of the aircraft should any way qualify for zero rate Irish VAT in accordance with
para 4 (b) of the second schedule to the VAT on the basis the aircraft is used by a qualifying international airline.
Company B to American Airlines
B2B services. Place of supply per Section 34 (a) VA is US where customer is established.
As place of supply is US supply is outside scope of Irish VAT.
Irish supplier is not required to charge Irish VAT on the supply
Irish VAT invoice does not have to be issued but can be issued for commercial reasons
© Irish Tax Institute 2011
Question 9 - Services
Irish company carries out repair work on a building in London for landlord. Landlord is an Irish company with no fixed establishment in the UK.
The work is not subject to RCT.
–
What is the Irish VAT treatment of the repair work
© Irish Tax Institute 2011
Question 9 - Services
Irish company carries out repair work on a building in London for landlord. Landlord is an Irish company with no fixed establishment in Ireland.
The work is not subject to RCT.
–
What is the Irish VAT treatment of the repair work
Service is viewed as connected to property.
Place of supply is UK where property is located. Section 34 (c) VA refers.
As place of supply is UK supply is outside scope of Irish VAT.
No Irish VAT is chargeable on the services.
The Irish company will need to consider the UK VAT treatment of its repair activities carried out in the UK.
© Irish Tax Institute 2011
Question 10 - Services
UK company provides property management expert services with respect to a building in Dublin. The UK company has no permanent
presence in Ireland. The client of UK company is an Irish VAT registered landlord and owner of the property. UK company bills Irish landlord
for the work. The activities are not subject to RCT.
–
What is the Irish VAT treatment of the property management expert services
© Irish Tax Institute 2011
Question 10 - Services
UK company provides property management expert services with respect to a building in Dublin. The UK company has no permanent
presence in Ireland. The client of UK company is an Irish VAT registered landlord and owner of the property. UK company bills Irish landlord
for the work. The activities are not subject to RCT.
–
What is the Irish VAT treatment of the property management expert services
Service is viewed as connected to property.
Place of supply is Ireland where property is located. Section 34 (c) VA refers & Section 33 (2) VA
As place of supply is Ireland supply is within scope of Irish VAT.
Accountable person for the VAT is the Irish landlord in accordance with Section 12(2) VA.
Irish landlord is treated as ”supplying the services to itself” and is required to self assess for VAT on receipt of the services.
On basis the landlord is using the property for VATable purposes VAT is self assessed in Box T1 And T2 of same VAT return and net
effect is VAT cancels out and no VAT is cash payable to Revenue (See sample VAT return below).
© Irish Tax Institute 2011
Question 11 - Services
UK company holds conference in Ireland. Charges admission fees to business (B2B) and non business customers (B2C). Some customers
are Irish some are non Irish. UK company has no establishment in Ireland.
–
What is the Irish VAT treatment of the charges for the conference.
© Irish Tax Institute 2011
Question 11 - Services
UK company holds conference in Ireland. Charges admission fees to business (B2B) and non business customers (B2C). Some customers
are Irish some are non Irish. UK company has no establishment in Ireland.
–
What is the Irish VAT treatment of the charges for the conference.
Place of supply of service (admission to conference) is Ireland for both B2C and B2B supplies. Section 34 (g) VAT refers for B2B
supplies. Section 34 (g)(a) VAT refers for B2C supplies.
UK supplier is accountable person per Section 5 (1) VA (there is no reverse charge for B2B supplies here) UK supplier has to VAT
register in Ireland and charge Irish VAT on its admission fees. Assumed subject to standard rate VAT (and not exempt as in respect of
admission to an educational event).
UK supplier can reclaim Irish VAT on recoverable expenses via its Irish VAT return.
© Irish Tax Institute 2011
Pro-forma VAT invoice for Intra-community Supplies of Goods
(1)
Company Name and Address
2)
Date of issue of invoice
(5)
Company VAT Number
3)
Date of supply of goods or services / date of payment (if
different)
(6)
Customer Name and Address
4)
Invoice No (sequential series)
Unit Price Quantity
Total Price
VAT Rate
VAT
(7)
Ex VAT (7)
(10)
Amount
(7)
€
(8)
Description of the goods/services provided
(11)
Customer VAT Number
€
€
“Intra Community supply of goods – customer to
account for VAT under Article 200 of Council
Directive 2006/112/EC.”
X%
Total Ex VAT
(9)
Total VAT Payable [if any]
Total Due
© Irish Tax Institute 2011
X
X
X
Pro-forma VAT invoice for Reverse Charge Services
(1)
Company Name and Address
2)
Date of issue of invoice
(5)
Company VAT Number
3)
Date of supply of goods or services / date of payment (if
different)
(6)
Customer Name and Address
4)
Invoice No (sequential series)
Unit Price Quantity
(7)
(7)
€
(8)
Description of the goods/services provided
(11)
Customer VAT Number
Total Price
Ex VAT (7)
VAT Rate
(10)
€
VAT
Amount
€
This invoice relates to an Article 44 service. The
recipient of this service may be required to self
account for VAT on receipt of this service in
accordance with Article 196 of EU council
Directive 2006/112/EC.”
X%
Total Ex VAT
(9)
Total VAT Payable [if any]
Total Due
© Irish Tax Institute 2011
X
X
X
Appendix 4 – Sample Reverse Charge Accounting Procedure
Sample VAT Return with Reverse Charge Services
Company has full VAT
Recovery
VAT on Sales/reverse
charge VAT goes in Box
T1
Invoice No
Net Amount €
VAT €
Gross €
VAT
Recoverable
100%
04-Aug-11
3
€3,000.00
€630.00
€3,630
€630.00
-
-
-
-
-
02-Aug-11
2
€1,000.00
€210.00
€1,210
Customer/ Supplier
name
Date of Invoice
1. Output VAT
Sales
Irish Customer
-
Domestic Irish supplies
Reverse charge services received
VAT on Irish Purchases
and Reverse charge
services Total is
inserted in Box T2
Net VAT Payable to
Revenue is inserted in
Box T3
French lawyer
€210.00
€
840.00
Total Output VAT - Box T1
Box T1
2. Input VAT
Irish Purchases
Irish lawyer
01-Aug-11
1
€1,000.00
€210.00
02-Aug-11
2
€1,000.00
€210.00
€1,210.
€210.00
Reverse chage services received
Net VAT Repayable from
Revenue is inserted in
Box T4
French lawyer
€210.00
Total Input VAT - Box T2
€
420.00 Box T2
Net VAT Payable - Box T3
€
420.00 Box T3
Net VAT Repayable - Box T4
© Irish Tax Institute 2011
€1,210
nil
Box T4
Appendix 4 – Sample Reverse Charge Accounting Procedure
Sample VAT Return with Reverse Charge Services
Company has partial
VAT recovery of 80%.
Invoice No
Net Amount €
VAT €
Gross €
VAT
Recoverable
80%
04-Aug-11
3
€3,000.00
€630.00
€3,630
€630.00
-
-
-
-
-
02-Aug-11
2
€1,000.00
€210.00
€1,210
Customer/ Supplier
name
Date of Invoice
1. Output VAT
Sales
Irish Customer
VAT on Sales/Output
VAT Total is inserted on
Box T1
-
Domestic Irish supplies
Reverse chage services received
VAT on Irish
French lawyer
Purchases/Reverse
€210.00
€
840.00
charge services Total is
inserted in Box T2
Total Output VAT - Box T1
Box T1
2. Input VAT
Net VAT Payable to
Revenue is inserted in
Irish Purchases
Irish lawyer
01-Aug-11
1
€1,000.00
€210.00
02-Aug-11
2
€1,000.00
€210.00
€1,210
€168.00
Box T3
Reverse chage services received
Net VAT Repayable from
French lawyer
€1,210
€168.00
Revenue is inserted in
Box T4
Adjustment due to increase in VAT recovery rate
Total Input VAT - Box T2
€
Net VAT Payable - Box T3
€
Net VAT Repayable - Box T4
© Irish Tax Institute 2011
336.00 Box T2
504.00Box T3
nil
Box T4
Appendix 4 – Sample Reverse Charge Accounting Procedure
Sample VAT Return with Reverse Charge Services
Company has no VAT
recovery .
Invoice No
Net Amount €
VAT €
Gross €
VAT
Recoverable
0%
04-Aug-11
3
€3,000.00
€630.00
€3,630
€630.00
-
-
-
-
-
02-Aug-11
2
€1,000.00
€210.00
€1,210
Customer/ Supplier
name
Date of Invoice
1. Output VAT
Sales
Irish Customer
VAT on Sales/Output
VAT Total is inserted on
Box T1
-
Domestic Irish supplies
Reverse chage services received
VAT on Irish
French lawyer
Purchases/Reverse
€210.00
€
840.00
charge services Total is
inserted in Box T2
Total Output VAT - Box T1
Box T1
2. Input VAT
Net VAT Payable to
Revenue is inserted in
Box T3
Net VAT Repayable from
Irish Purchases
Irish lawyer
01-Aug-11
1
€1,000.00
€210.00
02-Aug-11
2
€1,000.00
€210.00
€1,210
€0
Reverse chage services received
French lawyer
€1,210
€10
Revenue is inserted in
Box T4
Adjustment due to increase in VAT recovery rate
€
Total Input VAT - Box T2
Net VAT Payable - Box T3
Net VAT Repayable - Box T4
© Irish Tax Institute 2011
€
0
Box T2
840.00Box T3
nil
Box T4
General VAT Principles
Do not look at sections in Isolation
Approach to answering VAT question
1
2
3
4
5
6
Is it a supply of goods or services
What is the place of supply
Who is the accountable person
What is the VAT Rate
What is the consideration/Taxable amount (i.e. what is the
VAT charged on)
Is there a VAT recovery entitlement
<**Refer to aid to approaching a VAT question**>
© Irish Tax Institute 2011