VAT charged in Italy

M

Mrs Vanecamp

Registered User
Messages
47
The company that I work for is subcontracting some scientific work to Italy, VAT will be charged, can I reclaim this?
 
If you issue your vat number to the subcontractor they should be able to invoice ex vat, cant remember the correct name of the agreement. inter european vat or some such.
 
Just noticed I posted this in the wrong forum - apologies.

They say they have to charge VAT under the rules of some EU directive.
 
As I understand it you can get back VAT paid to another eu country but the process is pretty difficult and involves a lot of paperwork. That is why there is the inter eu system.

There will probably be an accountant on soon who can clarify the situation. I use this sytem when I purchase goods from the uk or northern ireland.
 
the rules for business to business (B2B) supplies of services in the EU changed from 1 January this year. From this date, almost all B2B supplies of services are zero rated by the supplier and instead self-accounted for by the customer, provided the customer is registered for VAT in their own country.

In this case, it would mean the Italian company zero rate their invoice to the Irish company but quote the Irish company's VAT number on their invoice. Then the Irish company effectively charge themselves Irish VAT on the invoice (and reclaim it if they are entitled to do so).

There are a number of exceptions to this rule but they generally related to work on land and buildings. If the Italian company are, correctly, entitled to charge the VAT (and I don't think they are) then the Italian VAT can be reclaimed through the 8th directive procedure. The administration of this changed this year too and the reclaim can be processed through the Irish Revenue's website.
 
Thanks Nige,

I thought that I would be able to put the claim through ROS but as we have to prepare a quote for our customer before the work can start, I rang Revenue to confirm.
After getting the usual run-around - "not my department" "I don't know" "why do I get all the weird calls?" I was told that while I can submit the claim, they don't know if the Italian Revenue will refund the VAT
 
The Italian tax authorities will only refund the VAT charged if it was correctly charged.
 
Mrs Vanecamp said:
The company that I work for is subcontracting some scientific work to Italy, VAT will be charged, can I reclaim this?
Click to expand...

I would have thought that the service provided by the Italian person should be zero rated and that your employer should then self account for the VAT in Ireland (as per the "new" rules).
 
You must log in or register to reply here.
Back
Top