VAT Question

[Michael124]

Hi,

I am looking at setting up an Irish business (it will be VAT registered) - I will be selling services to Canada (I will be registered for and charging Canadian sales tax on the services GST).

Just wondering does any know if I can still reclaim the VAT paid on Irish business expenses (advertising etc) since I have no vatable sales in Ireland?


I will be getting professional tax advice before I incorporate - just want to get an idea before I do.

Thanks

 

[Ciru75]

Assuming that the services would be subject to VAT if they were supplied to Irish customers (as in they're not exempt), you can reclaim VAT on your costs.

 

[Michael124]

Assuming that the services would be subject to VAT if they were supplied to Irish customers (as in they're not exempt), you can reclaim VAT on your costs.

Thanks for the reply - that's what I was thinking. Thanks for the clarification.


Another question I had - not sure if you would know the answer:

If an Irish company purchased a trading asset (website and some IP) from a business in the UK but the Irish company was not VAT registered at the time of the purchase (but is VAT registered now) - is it still possible for the Irish company do a reverse charge on the VAT?

Or is it not possible as the Irish company was not VAT-registered at the time of the purchase?


Thanks

 

[myate]

As long as the business will be VAT registered in Ireland, yes you will be able to claim on expenses.