Doing some work for an EU country, flat-rate VAT scheme

[Gad-Westy]

I cannot find a good answer for this on google and our accountant is on holiday so over to the ever reliable encyclopedia of pistonheads.

I have a UK Ltd that is registered on the flat rate VAT scheme.

A company based in Ireland have asked me to quote for some design work. I will not be working there as such but will be supplying work to them from the UK.

So questions:

I presume I cannot charge VAT?
But I will be charged VAT?
And I cannot claim it back?

At this stage I just need to make sure I correctly write the quote and have accounted for any of this in what I charge.

[surveyor]

This would be better in the business section I think.

I used to do this, but can't remember with enough certainty to write it down. And it's almost certainly changed post brexit.

[SpidersWeb]

This is a subject that generates a lot of confusion because the Flat Rate turnover includes zero rate and exempt supplies on which VAT is not charged, but importantly it *doesn't* include supplies which are outside the scope of VAT - www.gov.uk/guidance/flat-rate-scheme-for-small-bus...

So the question is whether your supplies are within the scope of VAT and for that you need to turn to notice 741A. Now if it is a B2B service, which you indicate it is, then the place of supply would be where the customer belongs *unless* it hits one of the 'special' rules which are listed in section 6.4 www.gov.uk/guidance/vat-place-of-supply-of-service... and from the limited information you mentioned the only one of those that seemed likely to apply would be services related to land which are deemed to be supplied where the land is and not where the customer is.

Assuming (and that's a dangerous thing to do...) that your supply is where your business customer is in Ireland, then that supply would be outside the scope of VAT and thus not included in the Flat Rate turnover on which the Flat Rate percentage is applied.

But realistically you need to get professional tax advice before committing yourself to anything.

[Gad-Westy]

Many thanks both. Really appreciate that. I have now managed to speak with my accountant so have cleared it up a little. Unfortunately it does look like I'd need to cover the VAT cost myself.