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bigduckontax
bigduckontax, Accountant
Category: Tax
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Question re VAT: a UK VAT registered company is an exhibition

Customer Question

Question re VAT:
a UK VAT registered company is an exhibition stand contractor - designing, building, transporting and constructing on site exhibition stands for clients at various venues internationally. After the exhibition all stand materials are removed and transported back to the UK.
The specific case in question is regarding an exhibition in Dublin for a client based in the US :
- should any VAT be charged on the invoice to my client and if so using what rate?
- is my company obliged to register with the Irish Revenue Service and charge Irish VAT?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
Please tell me what you mean by 'should any VAT be charged on the invoice to my client and if so using what rate?' Surely you are invoicing your client for the stands? Or have I got it all wrong?
There is no need for you to register with the Irish authorities, that is a matter for your client, not you..
Customer: replied 2 years ago.

Hello - thanks for the response...

yes, I invoice the client for all services and materials used to deliver the stand. The question is should I add VAT onto these charges or not?

The client is a US based organisation so outside the EU yet the services were delivered in Ireland so I'm not sure if I should charge VAT.

Expert:  bigduckontax replied 2 years ago.
If the client is registered for VAT in Ireland and you have their VAT number then you may use the reverse charge process ie charging VAT and claiming it back at the same time effectively producing a zero rated supply. However this service is to an US organisation and should simply be zero rated, ie you charge VAT, but at 0%.
Customer: replied 2 years ago.

The client is definitely not VAT registered in Ireland so no Reverse Charge needed.

On reading VAT notice 741A - 5.2 (below) it seemed to me that as the client belongs in the US the service supply is 'out of scope' for UK VAT rather than Zero Rated (2 different tax codes on my accounting system) - can you confirm if the supply is 'out of Scope' or Zero Rated?

5.2 This is known as the B2B general rule. If you supply services that fall under this section and your customer belongs outside the UK, your supply is outside the scope of UK VAT. If your customer belongs outside the EC there may be local taxes which apply.

Expert:  bigduckontax replied 2 years ago.
Well all the companies with which I have been involved zero rating has been used and HMRC never batted an eyelid, nor did their predecessors HM Customs & Excise.
By all means process using an invoice without mentioning VAT at all in these cases.
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

OK - thanks.

Expert:  bigduckontax replied 2 years ago.
Delighted to have been of assistance.

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