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Sam
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Category: Tax
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We had High Court Action initiated against our Northern Ireland

Resolved Question:

We had High Court Action initiated against our Northern Ireland Company in the Irish Republic by an employee who is on the UK Company payroll but is resident in the Irish Republic and on paying the settlement this case will be withdrawn. However our Irish solicitor has sent us an invoice of €9000 PLUS 23% VAT for his work and mediation and he has addressed the invoice to the company but used the home address of a 40% shareholder who lives in the republic and charged us 23% vat on the invoice.
Could we tell him to invoice our Northern Ireland Company and not charge us VAT.
Or if he does invoice the Northern Ireland Company and charge 23% VAT how do we go about recovery of same.
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer.
The invoice should be changed to be the address of the N Ireland company and VAT is NOT chargeable as you are part of the UK and it would seem the Irish solicitor is part of S Ireland.
So ask them to re-raise the invoice and zero rate the VAT charge (correctly) there should be NO VAT charge
It all boils down to where the place of supply is, and its either N Ireland where you are or under the UK based company - either way both fall within the UK VAT position - so NO VAT should have been charged.
Thanks
Sam
Customer: replied 2 years ago.

Hi Sam,

The place of supply was in S Ireland The solicitor is Dublin based in the republic.The High Court Writ was lodged in the S Irish High Court. Our employee who is on the UK payroll lives in S Ireland

Does that change the situation

Regards

Paul

Expert:  Sam replied 2 years ago.
Hi Paul
Thanks for your response
You advise that the place of supply was in S Ireland - but yet the employee worked for the UK company which is linked with a N Ireland company - so how can you arrive at the conclusion that the place of supply is S Ireland?
They supplied their services to the company advised in N Ireland (UK)
As you are a business then the place of supply is your location (so the N Ireland base) and not the solicitors base or the ex employees location
Thanks
Sam
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