VAT invoice remote work

[holaquetal]

Hi all, I shall speak to an accountant but wanted the community here to share initial thoughts. I received an offer from a company based in EU to work remotely, I am based in Ireland. It is a software development role. They hire remote employees via contractor model: I would need to invoice them every month. Am I required to add VAT in the invoice? The company advised of course I speak to an accountant but they said that for folks based in EU there is no need to add VAT. Salary is in the region of 5,000 EUR a month, is sole trader the best model or would the group advise to set up a company? Anything I forgot to ask? Thanks

 

[dublin67]

For Vat purposes you will be making what is called an intra-community supply. You will need to register for Vat but you won't charge Vat on your invoices to the company within the E.U.. You need to get proof that this company is registered for Vat and you will be supplying services on a reverse charge basis. Look at the Revenue website on the invoicing requirements - you are making a business to business supply (vat word for sale) to a foreign company based within the European Union.

 

[holaquetal]

For Vat purposes you will be making what is called an intra-community supply. You will need to register for Vat but you won't charge Vat on your invoices to the company within the E.U.. You need to get proof that this company is registered for Vat and you will be supplying services on a reverse charge basis. Look at the Revenue website on the invoicing requirements - you are making a business to business supply (vat word for sale) to a foreign company based within the European Union.

Thanks @dublin67 !

 

[torblednam]

You have used the word employees and salary, which suggest to me that you may well, in reality, be self employed. You should probably seek proper advice on it at the outset.

 

[bipped]

Definitly speak to an accountant. Self employed means more paperwork like tax & vat returns if you're a sole trader, even more if its a company. Self employed can lose out on worker protections. Its better for the company who dont have to pay annual leave or public holiday pay, redundancy if they decide they dont need you any more. They save on paying employers contributions for prsi & the state lose that welfare contribution. If you want to start a business, work for anyone you choose, bill clients at a rate you decide to cover holiday time & all your costs, & make a profit, then its a good idea as you call the shots so to speak. Companies who call employees independent contractors & are still controlling the terms are doing it to cut costs & are shafting people.

 

[newirishman]

I would think about doing this very hard. You are talking about a "Salary" (it isn't!) of 5000 euro, or max 60 000 euro per year.
You should get a SW development role with an Ireland-based company without too much trouble, and have none of the accounting mayhem of an arrangement such as you have outlined.

You have no annual leave entitlements, or sick leave, you need to organise all your health insurance yourself.
If the EU company decides not to pay your invoice in one month - good luck with getting your money!

One simple advise: don't do it.

 

[Purple]

That was my first thought as well @newirishman. €60k with no annual leave and reduced (bugger all) employment protection with the added expense and hassle of making a tax return.

@holaquetal is there scope to work for other clients or will this be a full time role?