VAT Sole Trader - EU Services

cooleyirl

cooleyirl

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I am self employed and provide digital services as a contractor exclusively to a company in Cyprus. The company I provide services to pay me monthly based on performance measures. As I am about to go over the €42,500 threshold in 2025 I registered today with Revenue for VAT.

I have done research which indicates that because I am providing services to another business in an EU country I am not required to charge VAT. I believe the VAT is to be accounted for on their side.

Currently the company emails me a basic report followed by a payment a few days later. It is an automated process and there isn't a space for my VAT nunber. They're a well know publicly listed company.

My understanding of reading the Revenue website is that I either send the company an invoice monthly with my VAT number, the other company's VAT number, the amount I'll be paid and ZERO for VAT. Alternatively Revenue says on their website that the company can provide this to me.

Does anyone have experience how to ensure I comply with this process for revenue?

I have sent an enquiry form to revenue about my situation and the questions above.

Thanks to anyone who can provide information or experience.
 
The main obligation I can think of is that you're supposed to validate the VAT number that you've been given by the company in Cyprus using the VIES system, and keep a record that you verified it.

This page from the Revenue Commissioners has some additional details.
 
An additional point is that the invoices are not zero rated - there is no Irish vat and do not include Vat @ 0% on your invoice. On your invoice you should include the sentence"Vat is accounted for on the reverse charge basis in the Member State of the recipient." This is in addition to putting the Vat number of the company on your invoice. I also validate the foreign Vat number each time I issue an invoice to a business in an E.U. Member state and print out a scanned copy of the vat number confirmation. The vat number can be validated here: https://ec.europa.eu/taxation_customs/vies/#/vat-validation
From a Revenue viewpoint the onus is you to demonstrate that the customer is Vat registered in another E.U. member State.
 
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