VAT registration intra EU trade

peterg

Registered User
Messages
2
hi,
I hope you can help me with my question related to the VAT registration.

I'm a sole trader, offering IT services mostly to companies based in other EU countries but also to one or two Irish businesses. Additionally, I order some services from companies established in other EU countries, all these services fall into a Fourth Schedule Services category/intra Community trade.

Do I need to register for VAT assuming my turnover will not exceed €37,500?

What if I wouldn't be ordering any services from other companies and my turnover would not exceed €37,500 threshold?

And finally, what happens if my turnover over the last 12 months exceeds €37,500 but just for a very short time period, what should I do in this case - can I register for VAT and then cancel VAT registration shortly after? I don't have many expenses and because of that prefer not to be registered for VAT.

I would appreciate any feedback on this!

Thanks,
Peter
 
As you receive services from abroad you are required to register regardless of size of supply. Link is here: http://www.revenue.ie/en/tax/vat/guide/registration.html#section2 and look at 2.6

Just a comment in relation to you searching - the 4th Schedule was abolished in 2010 with the introduction of the Recast 6th directive. Obviously the principles still apply and the general rule is that services provided outside the State to another Member State are done so on a reverse charge basis. As always there are many exceptions - property, cultural services etc.
 
As you receive services from abroad you are required to register regardless of size of supply. Link is here: and look at 2.6

Just a comment in relation to you searching - the 4th Schedule was abolished in 2010 with the introduction of the Recast 6th directive. Obviously the principles still apply and the general rule is that services provided outside the State to another Member State are done so on a reverse charge basis. As always there are many exceptions - property, cultural services etc.

thanks for your reply and the link to the relevant section of the Revenue website! I understand now that if I order any services from abroad I need to register for the VAT,

Any chance to get some feedback on remaining questions? So assuming that I won't be receiving any services from abroad but only supplying B2B services to other EU countries and Ireland I don't need to register for the VAT unless I reach the €37,500 threshold.

As far as I know, the threshold is calculated over any 12-month period, so what if 1 month after reaching this threshold I will fall again below it? Can I cancel my VAT registration then?

thanks
 
Without consulting the legislation my understanding is that you required to register if you exceed the €37.5K limit or expect to exceed the limit over any 12 month rolling period. On a practical basis when you cancel the registration you will get a form letter from the Revenue asking you relevant questions etc. I'm not sure you will get away with continually registering and de-registering.
 
If you are supplying services to companies based outside the state the place of supply of those services is where the customer is situated and therefore is outside the scope of Irish VAT. The customer (if they are based in the EU) is required to account for the VAT on the purchase of the service on the reverse charge basis. You do not have a requirement to register for VAT on these services alone and they would not count with regard to the €37.5k vat registration threshold. You may of course decide to voluntarily register for VAT in order to recover any VAT on purchases incurred,

capnhand
 
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