Hi,
I am a UK business. I have just started dealing with a new supplier in Ireland/UK. When I order goods I get a proforma from Ireland and make payment to an Irish bank account. Once this is done I get an invoice from the UK side of the company who are registered in the UK with a UK vat number and goods are shipped from London.
My problem is they are not charging me vat (they have my vat number) because the payment is made to their irish bank.
So my question is is this correct do I treat them as an EU country or should they be charging me VAT directly.
I would double check this with an accountant to make sure that you are doing the correct thing (I am not one). Sometimes on Irish invoices it mentions Reverse Charge VAT. In which case when you go in to edit the invoice there is a little tickbox at the top which says
Definitely check this one with an accountant - if you’re UK based and being invoiced by a UK vat registered company for a delivery entirely within the UK then they should probably be charging you UK VAT, but there are many edge cases and oddities in the VAT rules which an accountant is better placed to navigate, particularly if they can see the precise wording on the pro formas and invoices.
But I would like to correct @QFBeth’s comment above about using the “apply reverse charge” tickbox when the invoice mentions the reverse charge - this box is mis-labelled in QuickFile as it doesn’t apply the reverse charge (which is for purchases of services) but instead uses the rules for EC acquisitions of goods. You would use this tickbox if you were buying goods from a supplier in Ireland, they were shipping the goods from Ireland to the UK, and the invoice said something along the lines of “zero rated intra-community supply”, but not if you’re buying services that are subject to the reverse charge.
