Services to EU and UK only

[Konate]

If I set up a business as a direct agent and have only 2 clients offering them a service. One is a business in the UK and the other in the EU. Do I need to register for VAT to apply intra eu Vat.
If I have to Vat register can I claim for input vat even though no output Vat, it will only be reverse charged?

 

[time to plan]

AS far as I understand it, if you are over VAT threshold then you register for VAT. Example:

You bill a client for €10,000 (ex VAT)
You buy a laptop for €1000 + VAT (€230)

You pay Revenue the reverse charge €2,300 on the invoice to client, deducting the €230 from the laptop payment = net payment €2,070. The VAT return form has the right boxes to complete.

 

[dublin67]

Yes, the turnover thresholds apply regardless of the location of your customer.

 

[Ciru75]

AS far as I understand it, if you are over VAT threshold then you register for VAT. Example:

You bill a client for €10,000 (ex VAT)
You buy a laptop for €1000 + VAT (€230)

You pay Revenue the reverse charge €2,300 on the invoice to client, deducting the €230 from the laptop payment = net payment €2,070. The VAT return form has the right boxes to complete.

If you're billing a client outside Ireland, you zero rate the invoice and the client charges themselves the VAT in their country by reverse charge. The supplier doesn't pay the reverse charge VAT.

 

[Konate]

Yes, the turnover thresholds apply regardless of the location of your customer.

thanks, can i then reclaim vat on purchases even though sales invoices are zero rated

 

[dublin67]

thanks, can i then reclaim vat on purchases even though sales invoices are zero rated

Yes, that is one of the few advantages of being vat registered. Just be aware of the items you can't reclaim Vat on and you'll find details on the Revenue website.