VAT & Contracting

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yop

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Hi
I am currently VAT registered and contract in IT services.
I contract into 2 companies, 1 who charge VAT to their customers and the other is a Medical Research company who don't charge VAT to their customers.

Question arose today with the 2nd company that if they can't charge VAT to their customers then are they eligible to not be charged VAT by me?

Thanks v much.
 
The only way you may not be obliged to charge the second company VAT is if they are VAT Exempt.

They will need to provide you with an exemption number from the revenue.

Otherwise you must charge VAT regardless of whether your customer is registered or not.
 
Thanks Callybags. I am not 100% sure of the setup, but they are medical/health provider who dont charge VAT to their customers. Is that the same?
 
It doesn't really matter whether they charge VAT or not. It's the service that you supply that dictates that you must charge it.

If you came around to my house to fix my laptop you would have to charge me VAT. (Strictly speaking :)) even though I am just an ordinary joe soap and not a business at all.
 
I know what you are saying.It might be possible for them to escape me charging them VAT.
 
Don't get me wrong with my little smiley there... perhaps not the best idea when giving advice.

It is fully your responsibility to charge the correct VAT, unless they can provide you with a VAT Exemption Number from the revenue.

This is what the revenue will look for from you in the case of an audit.
 
callybags said:
The only way you may not be obliged to charge the second company VAT is if they are VAT Exempt.

They will need to provide you with an exemption number from the revenue.

Otherwise you must charge VAT regardless of whether your customer is registered or not.
Click to expand...

Maybe you are referring to the VAT 13A scheme http://www.revenue.ie/en/tax/vat/leaflets/zero-rating.html

In fairness to the OP the company may be VAT exempt ie not entitled to register in which case he needs to charge VAT, as distinct from holding an authorisation to have supplies zero rated.
 
Joe you could be right there.
Its something to do with been a provider of health service or something, I don't know the EXACT wording on it. They can't charge VAT to their customers. Bit like doctors maybe?

But I am thinking that I still need to charge them VAT.
 
As Joe90 has said, it's very simple OP.

Either they produce an authorisation from Revenue that they are to be supplied services without a charge to VAT, and you comply, or else if they can't provide such an authorisation then you are obliged to charge them VAT.
 
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