Many UK businesses are finding work on the back of the booming Irish economy. This is good news but don’t forget the legal issues and importantly complying with the requirements of the Irish revenue. Did you know for instance, if you undertake any construction work, or work on goods in Ireland you will become liable to register for vat? There is no threshold so before you engage in any Irish contracts seek advice first. At Smailes Goldie we can assist you in registering for vat in Ireland, or establish your vat position in the UK.
Do you sell direct to the public in Ireland? This is known as distance selling and if you exceed the limit of €35000 you will have to register in Ireland. If your sales fall below this limit you must charge UK vat. If you sell tobacco or alcohol you must register in Ireland whatever the turnover.
If you provide services to Ireland then this opens a complicated web of possibilities from nil vat, with your customer accounting for vat in Ireland under a reverse charge, to a UK vat charge or even, again, a requirement to register for vat in Ireland. There is no straightforward answer to this so please always get expert advice before you act.
Finally if you sell goods to vat registered businesses in Ireland then you can zero-rate your supply provided you receive a valid vat registration number and keep evidence that the goods have left the UK.
The same rules apply as to all other member states but beware of the big issue of the moment Missing Trader Intra-Community Fraud (“MTIC”) A recent Panorama programme highlighted the extent of this, basically someone disappears having claimed millions of pounds from the revenue.
Whatever your business know your customer and take all reasonable steps to verify their status, if you need help to validate a vat number or advice on how best to ensure someone is a viable and credible person to do business with then please speak to us, we will be glad to help. There have been examples of innocent businesses ‘carrying the can’ for the fraudsters, simply by becoming part of a supply chain, so beware.