VAT query.

B

Bettyk

Registered User
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Hi, I have tried calling the Revenue but they have not been much help. Would anyone be able to help me with this scenario.

Company A is Republic of Ireland based company registered for VAT/RCT here but doing a contract (construction) for a UK based company in Northern Ireland.

Company B (also based in ROI and registered for RCT / VAT here) is subcontracting off Company A for this project in Northern Ireland.

Company C (also based in ROI and registered for RCT / VAT here) is subcontracting off Company B for this project in Northern Ireland.

Normally all this is straight forward as works are done in ROI and use the RCT rules however there is questions of UK VAT here and there is no ability to register an RCT contract as that is only available for the 26 counties.

Would anyone know what VAT company B should invoice company A?

Currently the Company B & C have priced in Euros.

Many thanks!
 
You need proper professional advice. VAT is a minefield at the best of time but its application in the context of cross-border contracting and compliance with RCT and its UK equivalent is the stuff of nightmares.
 
Thanks @T McGibney .. Ill try find a tax advisor local now. I presumed the Revenue would be able to advise initially but they were passing it from pillar to post and no one had an actual answer.
 
From a practical point of view, contact Company A and ask them how they normally deal with contractors based in the South. While the responsibility to get it right is yours, Company B, if Company A have dealt with contractors from the South before it is likely that they know how to operate the VAT.
 
@cremeegg Company A have not had to invoice the UK side of main company before but have done previous jobs in UK (through their ROI branch) and its worked as normal. RCT as various.
All material being purchased in ROI, all employees ROI based.
 
Bettyk said:
Thanks @T McGibney .. Ill try find a tax advisor local now. I presumed the Revenue would be able to advise initially but they were passing it from pillar to post and no one had an actual answer.
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Just be very very careful if you end up relying on Revenue advice as they routinely disclaim responsibility for all such advice whenever it suits them. Besides in this case there are issues or potential issues of exposure to UK taxes that are outside Revenue's remit.
 
It looks like to me that you mainly have UK tax issues here. The UK had, or perhaps has, an equivalent to RCT so you may need to take that into account. NI advice needed in my view.
 
We had an issue like this and took advice that our client should register for UK VAT but that the authorities may not give them a VAT number as they did not have a base in Northern Ireland.

UK RCT would apply.
 
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