How to invoice and account for VAT on service sold to UK post Brexit?

ninak

Registered User
Messages
130
I'm finding it hard to get clarity on this issue. We sell an online advertising service to UK businesses on a UK focused website. We are an Irish based company. So supply rules mean the service is supplied in UK, B2B, so not liable for Irish VAT. On HMRC site I am seeing that we now have to register for UK VAT, but even that is not clear. On Irish revenue site it is telling me that sales from Irish business selling service to the UK, where service is deemed to be provided in the UK, is not liable for Irish VAT and it is the responsiblity of the customer to declare the VAT?

My Q is how to I go about dealing with VAT on this months invoices and how do I account for VAT on my VAT3 return?

All the UK companies I deal with have UK VAT numbers and are legitimate businesses.
 

dublin67

Registered User
Messages
333
You may now be looking at two different vat treatments. If your service is B2B then for Irish purposes the service is deemed to be supplied in the U.K. and Vat is accounted for by the recipient. It is the same as before with the exception that you don't have the VIES filing requirements in respect of your U.K. sales. Any U.K. sales shouldn't go near your Irish Vat 3. You may need to put something on your annual Vat return (Return of Trading Details) but that is a long way down the line.

I don't know about the U.K. vat side.
 

Gordon Gekko

Registered User
Messages
5,203
It’s an interesting question.

It’s a long time since I studied VAT.

From memory, a business to business cross border supply in the EU is Zero Rated, with the customer then self-accounting for the VAT.

That’s assuming they supply their VAT number.

But a similar supply to, say, Uganda is not subject to VAT at all.

Is the UK now analagous to Uganda?

I don’t know.
 

ninak

Registered User
Messages
130
You may now be looking at two different vat treatments. If your service is B2B then for Irish purposes the service is deemed to be supplied in the U.K. and Vat is accounted for by the recipient. It is the same as before with the exception that you don't have the VIES filing requirements in respect of your U.K. sales. Any U.K. sales shouldn't go near your Irish Vat 3. You may need to put something on your annual Vat return (Return of Trading Details) but that is a long way down the line.

I don't know about the U.K. vat side.
Thanks for that. I'll drop HMRC an email I think.
 

ninak

Registered User
Messages
130
It’s an interesting question.

It’s a long time since I studied VAT.

From memory, a business to business cross border supply in the EU is Zero Rated, with the customer then self-accounting for the VAT.

That’s assuming they supply their VAT number.

But a similar supply to, say, Uganda is not subject to VAT at all.

Is the UK now analagous to Uganda?

I don’t know.
I would presume so. I think some non EU countries require other countries to collect the Sales Tax on their behalf. Have no idea yet what HMRC will require. When I get answers I will post them here for reference.
 

ninak

Registered User
Messages
130
The upshot, for those interested, is that I see VAT exempt and the customer in the UK is responsible for accounting for UK VAT. No reporting requirements on my side to HMRC. At least that's what we are doing as I believe we fall under the reverse charge rule, info here for those in similar positions.
 

SMBIRE

Registered User
Messages
27
It is vatable at 0%, not vat exempt. This is an important distinction when calculating your VAT liability to Revenue.
 
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